I don't understand how these "strategic oil reserves" actually save anyone any money. They are supposed to help lower the cost of fuel at gas stations...but if they result in the price of a gallon of gas dropping $0.20...are we really saving any money?
I mean, any consumer who pays federal taxes already purchased the petroleum once when the feds bought it for the strategic reserves, right? Now, the consumer pays again when he buys it at the gas station...and he’s saving money?
Does the government sell the SPR petroleum when it releases it? If so, do the proceeds just go into the Treasury account...just to be wasted on some other government program?...sounds like a hidden tax to me
They aren't supposed to be used to reduce gas prices. They are for emergencies, when there is a disruption in the supply, such as war, or perhaps an OPEC cut off. Very short term.
When you think of it, the reserves don't increase the amount of oil available. They only move it from the oil field to a storage tank, where it can be quickly moved out in the event of an emergency.