Posted on 07/30/2024 8:02:19 AM PDT by TigerClaws
The U.S. Department of Energy has finalized a contract to purchase 4.65 million barrels of crude oil for the Strategic Petroleum Reserve (SPR), the latest in a string of contracts aimed at refilling the SPR following a record release of 180 million barrels in 2022.
Exxon Mobil (NYSE:XOM) will supply 3.9 million barrels of the contract with Macquarie Commodities Trading US LLC supplying the rest.
The DOE has since repurchased a total of 43.25 million barrels at an average price of around $77 a barrel, considerably lower than its sale price of $95 per barrel. Further, the DOE has worked with Congress to cancel a previously planned sale of 140 million barrels of oil from the reserve, also counting toward the refilling of the stockpile,
"As promised, we have secured the 180 million barrels back to the Strategic Petroleum Reserve released in response to Putin’s war in Ukraine--and we accomplished this while getting a good deal for taxpayers and maintaining the readiness of the world’s largest Strategic Petroleum Reserve," Energy Secretary Jennifer Granholm has declared.
**
Previously, SPR reserves dropped to a 40-year low below 350 million barrels of crude, eliciting fresh concerns regarding the country’s energy security with industry experts charging that the Biden administration has been dragging its feet on the matter.
“I don’t think they have any sense of urgency. Why in God’s name did the Department of Energy not sell at 100 and then buy at 70 when they had the opportunity to?” Ed Hirs, energy fellow at the University of Houston, told Yahoo Finance in an interview.
(Excerpt) Read more at oilprice.com ...
Buy high and sell low.
The Democrat Party Organized Crime Syndicate at work.
They make money from government policies.
Alberta could fill it, if we had the Keystone.
Wow a whopping 20%+/- of daily use.
RED FLAG for upcoming war, probably Taiwan invading China. WHY HASN’T CHINA DONE THIS YET, GIVEN THE UNITED STATES HAS NO PRESIDENT?
Our government is run by corrupt, vindictive, hate filled morons.
L
Wait for it…
All the savings will go to Zelenskysky and Ukraine
After all, that’s probably why they negotiated this deal
Vegetable Head Joe pumped it dry trying to keep pump prices low. Now he is effectively gone, Time to pay the piper. It will take years ( decades) to clean up his mess. Much like Obama, his job of destroying America is done.
War is obviously on the horizon, let’s hope his Ukie war debacle doesn’t result in a major war before he leaves in shame. Good riddance.
𝐆𝐫𝐚𝐧𝐡𝐨𝐥𝐦 𝐢𝐬 𝐚 𝐛𝐚𝐥𝐝 𝐟𝐚𝐜𝐞𝐝 𝐥𝐢𝐚𝐫. 𝐒𝐡𝐞 𝐢𝐬 𝐜𝐥𝐚𝐢𝐦𝐢𝐧𝐠 𝐭𝐡𝐚𝐭 𝐜𝐚𝐧𝐜𝐞𝐥𝐥𝐢𝐧𝐠 𝐭𝐡𝐞 𝐬𝐚𝐥𝐞 𝐨𝐟 𝟏𝟒𝟎 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐛𝐚𝐫𝐫𝐞𝐥𝐬 𝐢𝐧 𝐚𝐝𝐝𝐢𝐭𝐢𝐨𝐧 𝐭𝐨 𝟒𝟑 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐩𝐮𝐫𝐜𝐡𝐚𝐬𝐞𝐝 𝐜𝐨𝐮𝐧𝐭𝐬 𝐚𝐬 𝐩𝐮𝐭𝐭𝐢𝐧𝐠 𝟏𝟖𝟎 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐛𝐚𝐜𝐤 𝐢𝐧.
Hmm...First I've heard of THAT possibility.
From what I was told by a well meaning individual that read a recent Economist article, what the Biden Administration was doing with the buying and selling of the SPR was pure genius and made us lots of money and out foxed the Saudis.
Shouldn’t it be the other way?
The feds are not trying to refill the SPR. They are making a show of it to make the voters think they are.
Despite the indications that the administration would refill the SPR this year, the Biden Administration won’t replace more than 10% of the oil removed from the SPR since Biden was inaugurated. The reason was that the Biden Administration wouldn’t want to drive up oil prices ahead of the election.
Now, the DOE has announced that it is seeking up to 3.3 million barrels for October delivery, but that could be canceled if oil prices rise again. The DOE also made a slight upward adjustment to the price it would be willing to pay for this oil, up to $79.99 a barrel (about a dollar a barrel higher than before).
Since nearly 300 million barrels were removed from the SPR, these small purchases would hardly qualify as “refilling the SPR.” Further, as they did previously, the administration could once again cancel the SPR solicitations.
Like a circle in a spiral, like a wheel within a wheel....
wy69
The feds are not trying to refill the SPR. They are making a show of it to make the voters think they are.
Despite the indications that the administration would refill the SPR this year, the Biden Administration won’t replace more than 10% of the oil removed from the SPR since Biden was inaugurated. The reason was that the Biden Administration wouldn’t want to drive up oil prices ahead of the election.
Now, the DOE has announced that it is seeking up to 3.3 million barrels for October delivery, but that could be canceled if oil prices rise again. The DOE also made a slight upward adjustment to the price it would be willing to pay for this oil, up to $79.99 a barrel (about a dollar a barrel higher than before).
Since nearly 300 million barrels were removed from the SPR, these small purchases would hardly qualify as “refilling the SPR.” Further, as they did previously, the administration could once again cancel the SPR solicitations.
Like a circle in a spiral, like a wheel within a wheel....
wy69
They used borrowed money to sell low and buy high.
Genius.
That always works well.
Ah, oil.
1) Taiwan and China. OIL IS EVERYTHING. It is civilization’s lifeblood. It eliminates a great many things in warfare — and in this particular case, it eliminates the need for China to do an invasion.
Taiwan has no oil, and like with everywhere else, food moves from source to shelves on a truck. China need not even blockade the Taiwan oil import facilities. They can simply bomb them. No oil gets in, starvation is not far behind.
2) The US SPR has an interesting reality to it. You cannot get out everything you put in. The rock absorbs it and it won’t come back out. It’s not like underground oil fields with huge pressure differentials. The oil soaks into the rock and stays there. This is not a huge number . . . a few % at most, but it’s interesting.
3) The only real obstacle to the scenario above with Taiwan and oil is the mindset of senior military people. They achieve immortality . . . they achieve the big arrows on pages of books with maps showing their military campaigns . . . by having a military campaign. It will be hard for generals to get persuaded that the war against Taiwan can be won without ever invading.
“10% for the Big Guy”
25% , he’s retiring don’t you know
Taiwan invading China
————-
There will be no war with China, every one knows this. “ Incidents”, chest thumping yes. The Taiwan people do 60 percent plus of their business with China, only their U.S. puppet leaders want war. We will lose in our current state.
All China has to do is isolate, blockade, no fly zone Taiwan…..as their recent maneuvers point to. Being only 90 miles from mainland China trumps our 6,000 mile supply line…..and their insane, massive military insures success through attrition alone.
https://www.aljazeera.com/news/2021/10/29/just-how-strong-is-the-chinese-military
“The People’s Liberation Army Navy (PLAN) is now the largest navy in the world, according to the government’s defence white paper, and its submarines have the capability to launch nuclear-armed missiles. To support the navy, China also has so-called maritime militia, funded by the government and known as “little blue men”, which are active in the South China Sea, while this year Beijing authorised its coastguard to fire on foreign vessels.….The air force has also grown into the largest in the Asia-Pacific region and the third largest in the world, with more than 2,500 aircraft and roughly 2,000 combat aircraft, according to an annual report by the US’s Office of Secretary of Defense published last year……”
…..and like the West has learned ( painfully) about Russia, their manufacturing base far exceeds anything the combined West can scrape together.
Checkmate, again.
Government maffs.
They’ll make up for it in volume.
Wait for it…
All the savings will go to Zelenskysky and Ukraine
After all, that’s probably why they negotiated this deal
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