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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
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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)
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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
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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)
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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)
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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
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