Skip to comments.US To Tap Strategic Petroleum Reserve
Posted on 03/13/2014 11:20:50 AM PDT by Cletus.D.Yokel
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Gas prices around here today shot up anywhere from six cents to 15 cents depending on the station.
The Obama administration will release 5 million barrels of sour crude from the United States emergency stockpile
That’s barely cover ONE day of oil consumption in Europe.
The Western media make almost no reference to European dependence on Russian oil exports, which in 2012 covered almost the same amount of imported energy, as EU gas imports from Russia. About 32% of EU oil consumption is covered by the approximate 3.65 million barrels per day of Russian oil exported to Europe.
Energy and Trade Security
Basically there is no such thing as energy security when energy is considered as what it is a trade good. Embargoes on Russian exports of energy to Europe, which would have a short-term devastating economic impact in Europe, are no more rational than Russia setting an embargo on European exports to Russia of Mercedes cars, French food and wines or British financial services, due to this being lose-lose, and in any case penalised by the WTO.
EU energy security action against Russia, backed and incited by the US, is a flagrant and basic case of trade protectionism.
Europe’s policy of very high-priced energy can itself be considered as disguised protectionism, artificially raising domestic energy production in Europe to deny foreign suppliers access to the European energy market with their lower-cost, lower-priced energy supply. Europe’s de facto anti-gas energy policy, claimed as not only providing energy security but also protecting the climate, has as noted above already led to a long-term trend of falling gas demand in Europe. This comes at a time in global gas E&P (exploration and production), and gas transport development of both pipelines and LNG, which will cause a major increase in world gas supply with an inevitable downward pressure on prices. Taking action to cut EU dependence on Russian gas, or any other gas, is totally unrelated to real world energy development and energy price trends.
We therefore find there is no credible strong case for the gas war theory to explain the Western political attempts at fomenting civil war inside Ukraine, and provoking open EU-Russia conflict at a high level, which can include military action. We are forced to conclude this is a flagrant case of political atavism, or the desire for social strife and war, operated by EU and US politicians against a target Putin’s Russia - that can hit back very, very hard.
By Andrew McKillop
OMG - what next? Why not just also wait until closer to election day 2014 and arrange for every Democrat voter to pick up their free lunch, gas, car, house, whatever else they think the idiot in the white hut has promised them?
That should cinch things for them.
5 YEARS OF BARRY AND STILL NO XL KEYSTONE PIPELINE, but we’re tapping our nations strategic oil reserve? W.. T.. F..!!!!!!!
Could be to cause problems for Putin, but.. Nahhhh, Barry is on Putin’s side!
This is the precisely why I call “bovine scatology” on this so-called “test”.
It is a political balloon for November. If, in current time this 5MM BBL release pushed gasoline prices down, what will stop Obamigabe from releasing 5 times that amount to the market and driving pump-prices down to benfit the Dhimicrats.
[Quid-pro-quo] If I were D-Senator, I’d lead to hue&cry for more releases from the SPR pointing at this “market test”. The “neighborhood” wants cheaper gas prices.
Obamugabe can “stand strong” against it but...eventually...cave-in to poular sentiment JUST BEFORE THE ELECTION.
“The Obama administration will release 5 million barrels of sour crude from the United States emergency stockpile...”
The United States consumed a total of 18.83 million barrels per day in 2011 and 19.18 million barrels per day of refined petroleum products and biofuels in 2010. For both years, this was about 22% of total world petroleum consumption.
The U.S. imported approximately 10.6 million barrels per day of petroleum in 2012 from about 80 countries. We exported 3.2 MMbd of crude oil and petroleum products, resulting in net imports (imports minus exports) equaling 7.4 MMbd. Net imports accounted for 40% of the petroleum consumed in the United States, the lowest annual average since 1991.
Forecast production increases from an estimated 7.5 million bbl/d in 2013 to 8.5 million bbl/d in 2014 and 9.3 million bbl/d in 2015. The highest historical annual average U.S. production level was 9.6 million bbl/d in 1970.
Petroleum includes crude oil and refined petroleum products like gasoline, and biofuels like ethanol and biodiesel. In 2012, about 80% of gross petroleum imports were crude oil, and about 57% of all crude oil that was processed in U.S. refineries was imported.
The top five source countries of U.S. petroleum imports in 2012 were Canada, Mexico, Saudi Arabia, Venezuela, and Russia. Their respective rankings vary based on gross petroleum imports or net petroleum imports (gross imports minus exports). Net imports from OPEC countries accounted for 55% of U.S. net imports.
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Amendment 001 to Notice of Sale No. DE-NS96-14PO10000
The Notice of Sale is amended to change the delivery period.
1. Reference SALES SPECIFIC REQUIREMENTS:
Item 2. is deleted in its entirety and replaced with the following:
2. The quantity of SPR crude oil offered for sale is five million barrels of
sour crude oil for delivery to successful offerors over a 40-day delivery period
commencing April 1 and ending May 10, 2014. Requests for early delivery in March
in accordance with SSP C.5(c) are encouraged and will be accommodated to the
maximum extent possible.
2. Reference ATTACHMENT A CRUDE OIL QUANTITIES OFFERED
FOR SALE: ATTACHMENT A is deleted in its entirety and replaced with the attached.
The offer due date remains unchanged.
“Hes drawing them down for a reason. And its not for elections but probably has to do with suspending elections...”
I’m thinking of my emergency plans and supplies. Times are okay now. But I sell or eat or give away all of my supplies. Then, when times ARE tough - what happens?
1) Hey - you kids will have to make sacrifices and go without, we just don’t have the food.
2) Hey - you kids will have to get out there and work harder so we can get more money to restock the shelves.
3) Hey - either I go over to that other neighborhood and steal from them or kill them or we go without.
Here’s the problem with your post and a few others on this thread:
When we post that 5MMBBL is a drop in the bucket and won’t impact the long term cost oil/gasoline we shoot ourselves in the “biblical foot”.
Seriesly: Stop minimizing the effect on gasoline prices and see the HUGH impact on campaign politics!
Even a 2-penny drop in the cost of gasoline will make political hay such that , as Septmeber rolls around, releasing enough crude to lower the price of gasoline by 5-pennies will allow idiots like Gary Peters (D-Mich) to support local campaigns for Dhimiicrats.
Yes, SPR releases look good in the short-term but let’s not allow the Dhimicrats to leverage it in an election year.
Why not release the real “strategic reserve”? America’s dynamic free market!
I just want to know who told Obama this was a good idea. You know he didn’t come up with it on his own.
???? this is goofy.
I have stomped across some of the sites in a bygone day when I was employed to do so.. What else are ya gonna do with vast salt domes? Some of this stuff needs to be cycled in and out,, just like politicos.
Plus it’s nice to know that all the equipment is working..
“What futures positions did they have?”
fyi, crude has declined over the last 8 trading days from 104 to 97 dollars a barrel.
Yeah, it’s a “test” all right.
I would think so,, lots of miles of pipe and such and who knows how many valves and sensors and gunk..
Anything to distract from Benghazi.
And the IRS scandal ;-)
I don’t think it’s enough to affect the price of oil except for a short time. I don’t think that will really worry Putin, and I don’t think the short memory public will remember it down the road.
That’s brainy — Clinton did the same thing for the same reason.
The correct response is to suspend (or repeal) the federal excise tax on gasoline.
WHO gets to pay that oil back into the reserve and forgo paying a cash import tariff/tax...?
Probably Venezuela or another foreign entity what will donate to Democrats this mid term.
I agree...this it's all purely political posturing for consumer consumption.
Take Note...The 'Atlantic Council' is involved greatly in keeping the balls rolling with all parties involved... as seen in this meeting directly after Ukraine's Yats (right) was in the Oval office..... Damon M. Wilson, (on the right), spearheads behind the scenes and interacts with many of the players as seen here, from Nato heads to the EU and the US....one of the "players" we never see or know of ...
Correct. And it's not supposed to anyway.
What it is supposed to do is let FRIENDS OF OBAMA to buy the oil cheaply, then sell it on the market for a profit.
Remember last time this happened, Jesse Jackson Junior got to buy some.
Remember....Michelle Obama said 8 yrs. ago...they will bring the USA along with them..even if we have to come kicking and screaming...and here we are.
It's the old story.."The Oil Must Flow"....
March 11th 2013 in Brussels.......
BRUSSELS European Union leaders will call for greater efforts to 'cut reliance on imported gas' at a Brussels summit next week, a draft document shows, underlining their concern about strained relations with dominant energy supplier Russia over Ukraine.
Ukraine is a transit route for shipping Russian gas to the EU, which relies on Russia for about a third of its supplies.
Past supply disruption because of pricing disputes between Moscow and Kiev had already motivated EU leaders to seek alternatives to Russian gas, but Russia's seizure of Ukraine's Crimea region has increased the EU's focus on diversifying.
The European Council is concerned about Europe's high energy dependency rates, especially on gas, and calls for intensifying efforts to reduce them, especially in the most dependent member states, said a draft document prepared for the summit of EU leaders in Brussels on March 20-21.
Some nations, such as Bulgaria, are almost entirely dependent on Russian energy
Every time I hear the Obama Administration is releasing oil from the strategic petroleum reserves, my first though is , “ some scumbag Obama crony is about to get paid off and make a killing that makes Saddam's oil for food scam look look like chump change by comparison”
.... it is likely that the share of Russian natural gas in Europe will increase further in the coming years, whether nation politicians like it, or not.
Since Russia's economy depends on oil...Putin has to secure that flow and keep it in his sphere of greatest influence...
The story tells itself really, as follows....
There are new problems between Russia and the EU concerning the South Stream pipeline construction.
Under pretext of aggravation of situation in Ukraine and end of the winter heating season, the European authorities have once again decided to put a spoke in our wheel, reported vestifinance.
The decision to build North Stream and South Stream gas pipeline has been made against the background of constant conflicts with the Ukrainian authorities related to payment of gas debt and numerous cases of illegal gas pumping on the Ukrainian side. As a result of this, it has been decided to build the gas pipelines bypassing Ukraine. Despite the resistance of Baltic countries and Poland, the issues of construction of the North Stream have been settled and two branches of the gas pipeline have been launched. However, situation with the South Stream was more difficult from the beginning.
In 2013 EU once again mentioned that Gasprom took advantage of its dominating position at the gas markets of Central and Eastern Europe. The officials officially threatened that the South Stream project will not be operating on the EU territory, because the bilateral agreements do not correspond to the Third Energy Package norms.
The aggravation of situation in Ukraine, the different approach of Russian and the western countries to the situation and the referendum in the Crimea have led to the fact that the European Energy Commissar has again threatened Russia to block the talks on the South Stream. Construction of the South Stream is planned to be completed only at the end of 2015. But the European Energy Commissar said that the winter heating season is coming to the end and Europe does not need additional sources of gas import.
The preparation to construction of South Stream started in 2012 and all these years showed that EU will continue laying claims to the project.
Meanwhile, the decision to reduce the gas deliveries to Europe bypassing Ukraine, because of unreliability of the Ukrainian partners has been made long time ago. According to some estimates, Russian gas transit to Europe via Ukraine decreased from 95% at the end of the 1990s to 52% in 2013. There was a proposal that if Russia and Crimea establish closer relationships, then the Black Sea section of the South Stream could be built through the Crimean shelf and partially on the ground.
Its not due to demand by consumers
The Chernobyl disaster started with an ‘experiment’ to see what would happen too...
Thanks very much, caww.
“Releasing just means they sell to someone politically connected at a low price ..”
Does Her Thighness have a bunch of oil futures contracts?
Don’t worry, the WSJ is assuring us that replacing all that gas with ours won’t cause prices to rise here.
I thought that releasing the reserves would bring gas prices down?
They have shot up 30 cents a gallon or so since this was announced.
Anything to do with the gasoline shortage in Florida?
Conspiracy theories aside, sometimes a test is only a test.