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Based on currently available information, the reserves are still well below capacity.
So, why is it less relevant today if the status remains unchanged?
To draw that conclusion then the argument would essentially have to be that it doesn't matter that the reserves are down, which goes against decades of US policy...but I'm open to hear differently...sometimes policies cease to make sense as times change.
The status of the inventory level isn't less relevant. The sale is less relevant, for obvious reasons.
Why do we suppose Congress is pursuing this tactic?
I am kinda wondering when and why did congress ever "mandate" a sale, out of the SPR.
Frankly, it was too small to begin with.
...Three bills enacted in 2015 and 2016 — the Bipartisan Budget Act of 2015, 21st Century Cures Act, and Fixing America’s Surface Transportation Act — collectively call for the sale of 149 million barrels in FY 2017 through FY 2025. Most of these sales set volumetric requirements, and revenues from those sales go to the U.S. Department of Treasury. A section of one of those bills — Section 404 of the Bipartisan Budget Act of 2015 — included authorization for funding an SPR modernization program by selling up to $2 billion worth of SPR crude oil in FY 2017 through FY 2020. In that act, the sales are based on revenue targets that must be authorized by Congress.
Two recent congressional acts collectively call for the sale of 107 million barrels of crude oil in FY 2022 through FY 2027:
The Bipartisan Budget Act of 2018, enacted in February 2018, calls for the sale of 30 million barrels over the four-year period of FY 2022 through FY 2025, 35 million barrels in FY 2026, and 35 million barrels in FY 2027.
The Tax Cuts and Jobs Act of 2017, enacted in December 2017, calls for the sale of 7 million barrels over the two-year period of FY 2026 through FY 2027
...Three bills enacted in 2015 and 2016 — the Bipartisan Budget Act of 2015, 21st Century Cures Act, and Fixing America’s Surface Transportation Act — collectively call for the sale of 149 million barrels in FY 2017 through FY 2025. Most of these sales set volumetric requirements, and revenues from those sales go to the U.S. Department of Treasury. A section of one of those bills — Section 404 of the Bipartisan Budget Act of 2015 — included authorization for funding an SPR modernization program by selling up to $2 billion worth of SPR crude oil in FY 2017 through FY 2020. In that act, the sales are based on revenue targets that must be authorized by Congress.
Two recent congressional acts collectively call for the sale of 107 million barrels of crude oil in FY 2022 through FY 2027:
The Bipartisan Budget Act of 2018, enacted in February 2018, calls for the sale of 30 million barrels over the four-year period of FY 2022 through FY 2025, 35 million barrels in FY 2026, and 35 million barrels in FY 2027.
The Tax Cuts and Jobs Act of 2017, enacted in December 2017, calls for the sale of 7 million barrels over the two-year period of FY 2026 through FY 2027
I am kinda wondering when and why did congress ever "mandate" a sale, out of the SPR.
Frankly, it was too small to begin with.
In 2015 Congress mandated sales from the SPR, with the goal of lowering capacity in the SPR. They decided to reduce the volume and not replace it, since way too much was being stored.
The original policy for the SPR was to hold 90 days of net imports. 90 days of net imports is much lower now than it was long ago. Congress decided to reduce the volume in the SPR since much more than 90 days was being stored. After the sales, the 90 day requirement will still be met.
SPR... required to hold the equivalent of 90 days of its net imports of oil and petroleum products as a reserve stock. As a result of relatively stable U.S. oil consumption and rapidly increasing production, and declining net imports, available oil stocks held in the SPR now are almost double the 90-day requirement.....
legislation...mandated the sale of over 250 million barrels of oil from the SPR, a situation that brings up another policy issue. If there is less oil in the SPR, what might be done with the “excess capacity”inevitably created? The government may be able to reduce the operating costs of the SPR by leasing reserve capacity freed by mandated sales..
...
Beginning in 2015, the debate over whether the SPR storage balance was too large given the evolving nature of U.S. oil production, consumption, and net imports resulted in Congress mandating the sale of SPR oil.
In 2015 Congress mandated sales from the SPR, with the goal of lowering capacity in the SPR. They decided to reduce the volume and not replace it, since way too much was being stored.
The original policy for the SPR was to hold 90 days of net imports. 90 days of net imports is much lower now than it was long ago. Congress decided to reduce the volume in the SPR since much more than 90 days was being stored. After the sales, the 90 day requirement will still be met.
SPR... required to hold the equivalent of 90 days of its net imports of oil and petroleum products as a reserve stock. As a result of relatively stable U.S. oil consumption and rapidly increasing production, and declining net imports, available oil stocks held in the SPR now are almost double the 90-day requirement.....
legislation...mandated the sale of over 250 million barrels of oil from the SPR, a situation that brings up another policy issue. If there is less oil in the SPR, what might be done with the “excess capacity”inevitably created? The government may be able to reduce the operating costs of the SPR by leasing reserve capacity freed by mandated sales..
...
Beginning in 2015, the debate over whether the SPR storage balance was too large given the evolving nature of U.S. oil production, consumption, and net imports resulted in Congress mandating the sale of SPR oil.
Yes, that is what the other article said. And as I said, the policy, from the beginning, was short sighted, and too small.
The sale looks superficially like an electioneering ploy...but look at the real implications-- it's all part of the ultimate agenda of selling us out to the CCP.
"Each point taken separately, Watson, is suggestive. Taken toether, they represent certainty." --Sherlock Holmes
President Biden's Energy Department is planning to drain another 26 million barrels of Strategic Petroleum Reserve since the inflation continues to skyrocket.
The SPR was 695 million barrels at times Trump was President, now there is 371 million barrels left and Biden plans to drain another 26 million barrels since his Inflation continues to surge.
One can expect Biden to ALWAYS do the opposite of what common sense would dictate.
That's basically how to think like a liberal. Think of a well researched, logical response to an issue would dictate.......................then do the opposite.
The sale looks superficially like an electioneering ploy...but look at the real implications-- it's all part of the ultimate agenda of selling us out to the CCP.
"Each point taken separately, Watson, is suggestive. Taken toether, they represent certainty." --Sherlock Holmes
Why is Congress trying to "sell us out to the CCP", exactly?
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