Posted on 03/13/2020 10:50:07 PM PDT by caww
“We’re going to fill it right up to the top, saving the American taxpayer billions and billions of dollars, helping our oil industry [and furthering] that wonderful goal — which we’ve achieved, which nobody thought was possible — of energy independence,” Trump said.
Trump’s announcement follows market turmoil in the international market when Russia and Saudi Arabia’s negotiations recently broke down and the Saudis announced they were increasing production.
The Department of Energy describes the importance of the SPR:
Established in the aftermath of the 1973-74 oil embargo, the SPR was established to counter a disruption in commercial oil supplies which could threaten the U.S. economy. It is also the critical component for the United States to meet its International Energy Agency obligation to maintain emergency oil stocks.
The industry reacted positively to the president’s announcement, CNBC reported.
“It is a fantastic idea,” John Kilduff, founding partner of Again Capital said in the CNBC report. “The SPR is one of the few levers that the U.S. can pull in times of oil market tumult.”
“It has served the country well when supplies get tight or otherwise become unavailable during times of natural disasters or geopolitical turmoil,” Kilduff said. “Releases of supplies have served to short-circuit price rallies in the past, and this filling may well serve to ebb the current sell-off.”
“Russia, the world’s second-largest producer, does not appear willing to return to its agreement with the Organization of the Petroleum Exporting Countries (OPEC), which has kept oil in a range around $30 a barrel for much of the last week,” CNBC reported.
Saudia Arabia is the de facto leader of OPEC.
(Excerpt) Read more at breitbart.com ...
Great! It should be kept full anyway imho. It’s like a defense measure. And since oil is cheap right now, the timing is very good
Good Move!!!
The Rats will bitch & moan...
our gasoline dropped an astonishing 8 cents today- $2.53- still way too high-
Perfect. This helps the country and the oil industry workers.
Good investment.
I remember Clinton releasing 30 million barrels for show. How big are these reserves? Can we go for months? half a day?
We should also be refinancing our short term bonds for 30 years at least. Both parties have made it quite clear we're never going to pay down the debt, so we might as well postpone the day of reckoning.
Ours has been below $2 for weeks now in Dallas.
AMEN. 4 more years!
Obama released way more.
thanks
Should be from US sources only, even if it costs more.
That's what I thought. And he did it in the middle of two wars while trying to start some more.
The Strategic Petroleum Reserve (SPR) is an emergency fuel storage of petroleum maintained underground in Louisiana and Texas by the United States Department of Energy (DOE).
It is the largest emergency supply in the world, with the capacity to hold up to 727 million barrels (115,600,000 m3). The United States started the petroleum reserve in 1975 after oil supplies were interrupted during the 1973–1974 oil embargo, to mitigate future supply disruptions.
The current inventory is displayed on the SPR’s website. As of January 3, 2020, the inventory was 635.0 million barrels (100,960,000 m3). This equates to about 34 days of oil at 2013 daily U.S. consumption levels of 18.49 million barrels per day (2,940,000 m3/d) or 64 days of oil at 2013 daily U.S. import levels of 9.859 million barrels per day (1,567,500 m3/d).
However, the maximum total withdrawal capability from the SPR is only 4.4 million barrels per day (700,000 m3/d), so it would take over 144 days to use the entire inventory.
At recent market prices ($69 a barrel as of December 2014), the SPR holds over $18.0 billion in sweet crude and approximately $25.5 billion in sour crude (assuming a $15/barrel discount for sulfur content).
In 2012, the total value of the crude in the SPR was approximately $43.5 billion, while the price paid for the oil was $20.1 billion (an average of $28.42 per barrel).
thanks.
Confused here. This was set up when we didn’t have our own oil. Since we are now and exporter, having drills so many wells, why is the Reserve so important?
It should come from who’s offering the best price.
This isn’t a factory made toy in China.
It’s oil.
It’s OUR money that’s paying for it.
That’s not crony capitalism.
that’s just smart
The only President who filled it up at a low. Imagine that!!
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