Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
With the immediate price of oil so ridiculously low, why doesn't the US buy every last barrel of it for the Strategic Reserve, to fill it up to the last ounce of storage space? We should even be urgently expanding the reserve, and filling it, at these insanely low prices. It would prop up the price of oil, stabilizing the market, and more importantly, we'd have a HUGE reserve, an enormous hedge against future price spikes.
With the immediate price of oil so ridiculously low, why doesn't the US buy every last barrel of it for the Strategic Reserve, to fill it up to the last ounce of storage space? We should even be urgently expanding the reserve, and filling it, at these insanely low prices. It would prop up the price of oil, stabilizing the market, and more importantly, we'd have a HUGE reserve, an enormous hedge against future price spikes.
The US DOE was directed 3 days ago to open up the reserve to allow producers a storage place for the excess crude. They can accept as much as 77 million barrels total. https://kadn.com/u-s-department-of-e...oil-producers/
Per last week's Petroleum report, crude oil inventories increased by 19.1 million barrels last week.
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,073 posts, read 7,511,991 times
Reputation: 9798
I think Absolute Power already bought oil soon after his March announcement to do so? ~$US20/b. He saw/thinks/thought deal is would be beautiful for the SPR.
The US DOE was directed 3 days ago to open up the reserve to allow producers a storage place for the excess crude. They can accept as much as 77 million barrels total. https://kadn.com/u-s-department-of-e...oil-producers/
Per last week's Petroleum report, crude oil inventories increased by 19.1 million barrels last week.
According to the linked article, we are not buying the oil, merely storing it for Big Oil
"Making some of the SPR’s storage capacity available to industry, without purchasing the oil, provides this immediate benefit to the industry and its hard-working employees.”
They do also say "“The Department continues to work with Congress to find ways to make funding available for DOE to buy American oil." but I would not hold my breath that it would be at $1 a barrell.
The US DOE was directed 3 days ago to open up the reserve to allow producers a storage place for the excess crude. They can accept as much as 77 million barrels total. https://kadn.com/u-s-department-of-e...oil-producers/
Per last week's Petroleum report, crude oil inventories increased by 19.1 million barrels last week.
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,073 posts, read 7,511,991 times
Reputation: 9798
^Depends, upon how fast USA oil producers can ramp down production.
^I heard on the radio that there are already 40 (~ 80mill B)tankers off the coast of Texas and another flotilla have left SaudiArabia bound for the USA.
2017, USA consumed ~20milB/d.
2018, USA consumed ~20.5milB/d
2019, USA consumed ~20.5milB/d
2020, " "~20.4milB/d
4/03/20 " " ~13.7milB/d
04/10/20 " " ~12.7 mlB/d
Pandemic or not, one day oil will cost more to produce than sell. There are technologies that already exist that could've killed the oil industry but were shoved away in order to prop up oil. There are so many energy sources that could've gave near infinite energy but instead we are burning fossil fuel for the last 200 years.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
