Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

RELEASE THE STRATEGIC PETROLEUM RESERVE

Posted on 03/20/2014 8:26:29 PM PDT by DIRTYSECRET

Empty it on the world market. This should effect Russia. The others? Who knows. We won't be needing it soon.


TOPICS: Politics
KEYWORDS: energy; ibtz; obamaalreadydid; oil; opec; russia; spr

1 posted on 03/20/2014 8:26:29 PM PDT by DIRTYSECRET
[ Post Reply | Private Reply | View Replies]

To: DIRTYSECRET

Sell to Ukraine and Europe.


2 posted on 03/20/2014 8:28:08 PM PDT by TBP (Obama lies, Granny dies.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney

Ping.


3 posted on 03/20/2014 8:29:52 PM PDT by Army Air Corps (Four Fried Chickens and a Coke)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DIRTYSECRET

The strategic oil reserve is literally a drop in the bucket of world demand - its totality doesn’t amount to enough to cause any Sultan to break a sweat. BUT, it’s strategic to the U.S. in the event of some unforeseeable catastrophic interruption in supply; even at that, it only amounts to a few days usage for the U.S., it’s not worth much as a weapon as you seem to see it.


4 posted on 03/20/2014 8:32:24 PM PDT by Rembrandt (Part of the 51% who pay Federal taxes)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TBP

Europe and Ukraine can buy oil from many different countries. Russia is using natural gas to coerce Ukraine and the EU. Ukraine controls the pipelines within it’s boundaries that controls a large percentage of the flow to the EU.

If you want to screw with Russia’s finances you start the process to export LNG to Europe just like the recent project to export LNG to Japan.


5 posted on 03/20/2014 8:33:25 PM PDT by meatloaf (Impeach Obama. That's my New Year's resolution.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: DIRTYSECRET

Some Obama crony is about to get his/her payoff


6 posted on 03/20/2014 8:33:55 PM PDT by rdcbn
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rembrandt

At its capacity, the SPR holds about 35 days of normal usage for the US. In a real emergency, that number would be about 70 days, maybe even 100.

It should always be full and never released outside of a genuine national emergency. Putting it all on the market at once would would have a negligible impact on the market for a brief period. It would ultimately harm us a hell of a lot more than Putin. Which is why it’s actually possible that this government might be considering such an idiotic thing.


7 posted on 03/20/2014 8:43:48 PM PDT by WhistlingPastTheGraveyard (If you don't stand up, you don't stand a chance.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: WhistlingPastTheGraveyard

I agree with all of you. It’s a bummer.


8 posted on 03/20/2014 8:48:51 PM PDT by DIRTYSECRET (urope. Why do they put up with this.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: WhistlingPastTheGraveyard

I tend to keep my own 3-6 mo tactical reserve, mostly to offset holiday and hurricane season price increases.


9 posted on 03/20/2014 8:49:18 PM PDT by Paladin2
[ Post Reply | Private Reply | To 7 | View Replies]

To: DIRTYSECRET

No do not release the strategic oil reserve. It is trap to do so. Oil prices will rise. Do this release and suddenly the US does not have enough oil itself.


10 posted on 03/20/2014 8:55:36 PM PDT by hondact200 (Candor dat viribos alas (sincerity gives wings to strength) and Nil desperandum (never despair))
[ Post Reply | Private Reply | To 1 | View Replies]

To: DIRTYSECRET

Not only no for the reasons listed above, but also, the SPR is low-quality crude, and therefore more expensive to refine.


11 posted on 03/20/2014 9:05:21 PM PDT by Little Pig (Vi Veri Veniversum Vivus Vici.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DIRTYSECRET
To what end? Russia will laugh it off just as they have laughed off the pitiful “sanctions” and nothing will change except we will have to spend an enormous amount of money to replenish the strategic reserves.

Crimea has been absorbed back into Russia and that will not change. Russia won this match and there is nothing productive we can do to change the outcome.

Prepare for their next move (Why bother, Obama will fold anyways) is our only alternative at this time.

About the only thing we can gain out of this situation is to point out the weakness of the left in general and their incompetence on the world stage, but even that won't amount to much due to the ignorance and dependence of the majority of voters in this country.

Keep you powder dry and be prepared.

12 posted on 03/20/2014 9:08:02 PM PDT by Pox (Good Night. I expect more respect tomorrow.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DIRTYSECRET

Dumbest crap ever. This is like saying empty the grain silos to eat, even destroying the grain kept for replanting.

We need an industry, a farm, a building of a keystone pipeline. We cannot do that easily if we burn up the oil reserves needed to produce that pipeline and give it to make money or to feed EBT looters.


13 posted on 03/20/2014 9:14:42 PM PDT by lavaroise (A well regulated gun being necessary to the state, the rights of the militia shall not be infringed)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Paladin2

Indeed, this is the replanting grain silos, it is not meant for open consumption.

But we live in a homosexual liberal free for all economy... and in the name of a bit of more pleasure we are completely destroying children and posterity.

This will end very badly and plays in the hands of our enemies or exilers.

Say hello to Russian.


14 posted on 03/20/2014 9:21:07 PM PDT by lavaroise (A well regulated gun being necessary to the state, the rights of the militia shall not be infringed)
[ Post Reply | Private Reply | To 9 | View Replies]

To: DIRTYSECRET

George Soros recommended the same - so I guess Soros is short oil futures.


15 posted on 03/20/2014 9:35:21 PM PDT by PGR88
[ Post Reply | Private Reply | To 1 | View Replies]

To: PGR88; DIRTYSECRET

Exactly, Soros is short on oil, and he needs to fill his orders.

If Soros says it, probably shouldn’t do it.

Plus, many other reasoned comments here indicate it would be the proverbial drop in the bucket.


16 posted on 03/20/2014 10:02:56 PM PDT by Aqua225 (Realist)
[ Post Reply | Private Reply | To 15 | View Replies]

To: WhistlingPastTheGraveyard

Obama just ordered 5 million barrels be released. He said it is part of a “test”; of what, I don’t know.


17 posted on 03/20/2014 10:48:22 PM PDT by Finalapproach29er (luke 6:38)
[ Post Reply | Private Reply | To 7 | View Replies]

To: DIRTYSECRET

You forgot the “/S”


18 posted on 03/21/2014 2:27:42 AM PDT by Vendome (Don't take life so seriously-you won't live through it anyway-Enjoy Yourself ala Louis Prima)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PGR88; DIRTYSECRET

Soros recommended it. I would be suspicious:

http://www.zerohedge.com/news/2014-03-20/soros-has-modest-proposal-how-punish-russia
Having warned of Putin’s blind-spot (and Merkel’s position of potential leadership) in the Europe-US-Russia debacle, billionaire investor George Soros has some ideas on how to punish Russia (and some warnings on the consequences)...

•*SOROS SAYS PUTIN ‘ACTING OUT OF WEAKNESS’
•*SOROS SAYS UKRAINE CRISIS IS LEADERSHIP CHANCE FOR MERKEL
•*SOROS SAYS MERKEL’S LEADERSHIP HAS GROWN IN UKRAINE CRISIS
•*SOROS SAYS U.S. SELLING OIL RESERVES WOULD HURT RUSSIA
•*SOROS SAYS U.S. HOLDS ‘STRONGEST SANCTION’ WITH OIL RESERVE


19 posted on 03/21/2014 3:33:44 AM PDT by dynachrome (Vertrou in God en die Mauser)
[ Post Reply | Private Reply | To 15 | View Replies]

To: DIRTYSECRET

We need the reserve, more or less intact, but we should drop the term “strategic,” because on that front the whole initiative is pathetic.

For decades, OPEC countries have been richly rewarded every time there has been any risk of a supply disruption. Iran threatens to close shipping lanes, prices rise 30%, and Iran collects a windfall without ever having to carry out the threat. It is mystifying to me that Western nations abide this.

At every moment in time, I believe that the SPR should have long-term call options out for 10-20% of the SPR. These options would allow those who exercise them to purchase the oil at a price, let’s just say $110/barrel, that is set modestly above market prices. Doing this would shift the windfall from these threats to the U.S. Treasury and thereby serve two purposes — neutering OPEC threats and making a bit of coin for the SPR.

This is one of many instruments available to the US to counter Russian aggression in Crimea and elsewhere, and to bring OPEC to its knees. Freeing up energy markets, building pipelines, and even perhaps taxing oil/gasoline would all contribute, as well.


20 posted on 03/21/2014 4:39:51 AM PDT by drellberg
[ Post Reply | Private Reply | To 1 | View Replies]

To: DIRTYSECRET
We won't be needing it soon.

Really? You have a magic crystal ball and can tell the future? When will we need it and how will we replace, and at what cost before then?

The US imports nearly have the oil we refine today. While our domestic production is growing, it isn't anywhere near reaching what we consume.

21 posted on 03/21/2014 4:49:57 AM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DIRTYSECRET
ANY release of the SPR...or ANY major flooding of the market hurts not only Russia....but OUR OWN.

If your goal is to lower the cost of energy and thus hurt the Russians, you need to remember it will ALSO hurt our own energy sector. They operate on a small margin and right now...all of these jobs are only there because there is a profit in it. If you take that away....it no longer becomes worth drilling...and people get laid off.

Its one of the down sides of putting a lot of your work force in energy. It's boom or bust. We saw this in Texas in the 80's. Cheap energy does come with a cost.

22 posted on 03/21/2014 4:58:40 AM PDT by NELSON111
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rembrandt; WhistlingPastTheGraveyard; Army Air Corps; DIRTYSECRET
it’s strategic to the U.S. in the event of some unforeseeable catastrophic interruption in supply; even at that, it only amounts to a few days usage for the U.S.

- - - - -

At its capacity, the SPR holds about 35 days of normal usage for the US. In a real emergency, that number would be about 70 days, maybe even 100.

Currently the SPR holds 696 million barrels.

http://www.spr.doe.gov/dir/dir.html

The actual capacity is 727 million barrels.

http://energy.gov/fe/services/petroleum-reserves

Recently in June 2011, the President directed a sale of 30 million barrels of crude oil to offset disruptions in supply due to Middle East unrest. The United States acted in coordination with its partners in the International Energy Agency (IEA). IEA countries released all together a total of 60 million barrels of petroleum.

http://energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reserve

The US consumes about 16 mmbpd (million barrels per day) of refined product. Total petroleum product is higher at +19 mmbpd but that includes natural gas liquids and ethanol.

http://www.eia.gov/dnav/pet/pet_cons_psup_dc_nus_mbblpd_m.htm

Many people do the math of 696 ÷ 16 = 43.5 days and claim that is our time for using the SPR. But that is foolish for several reasons.

First of all, if there was something like an OPEC embargo again, Texas, North Dakota and the like are not going to shut down there wells. We don't import 16 mmbpd of oil, we import ~7.5 mmbpd.

http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbblpd_m.htm

Even if there is a full out world war, I don't see Canada or the like stopping there sale of oil (and our flow of dollars) in any event. All of our OPEC imports total about 3.5 mmbpd. We get a tiny 0.03 mmbpd from Russia.

So what is the total need the SPR would have to replace? Maybe 4 mmbpd?

That number is also good in that the SPR can only withdraw 4.4 mmbpd. There is only so many pumps and pipes, and there are certainly limits of being able to load ships.

http://energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reserve/spr-quick-facts-and-faqs

So 696 ÷ 4.4 = 158 days.

This is still likely faster than we would need it. If OPEC or others are not selling oil to us, they are going to look for other customers. Any major crisis is going to raise not lower their expenses. If they sell to someone who normally buys from someone else, that original supplier is going to have surplus oil for sale.

23 posted on 03/21/2014 5:16:12 AM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Little Pig
the SPR is low-quality crude

The SPR maintains a ratio of sweet/sour, light/heavy that matches our refining ratios. It has been adjusted in the past as we imported more and more sour/heavy (cheap) oil following many refinery upgrades. We don't need to replace the Texas and North Dakota light sweets; they won't be shutting down for an OPEC embargo.

http://energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reserve/spr-quick-facts-and-faqs

24 posted on 03/21/2014 5:20:31 AM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 11 | View Replies]

To: thackney
If OPEC or others are not selling oil to us, they are going to look for other customers. Any major crisis is going to raise not lower their expenses. If they sell to someone who normally buys from someone else, that original supplier is going to have surplus oil for sale.

Wait, you mean oil is fungible? ;-)

25 posted on 03/21/2014 5:40:22 AM PDT by SoothingDave
[ Post Reply | Private Reply | To 23 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson