The SPR explained (Putin, gas prices, gallon, independent)

[CEN2RION]

And why does Biden want to use it to fight Russia?

https://www.cnn.com/2022/03/01/energ...ned/index.html

[Roboteer]

Who/what is an SPR?

This forum has fairly large spaces for us to write in. A major use for those is to explain what you're talking about. Try it?

[DRob4JC]

We were energy independent until the election was cheated away.

Putin would have never done this to Ukraine had the election turned out differently.

Apr 2018 - U.S. Military Killed 'A Couple Hundred' Russians In Syria Airstrikes, Pompeo Says As Trump Considers New Attack

How a 4-Hour Battle Between Russian Mercenaries and U.S. Commandos Unfolded in Syria

The artillery barrage was so intense that the American commandos dived into foxholes for protection, emerging covered in flying dirt and debris to fire back at a column of tanks advancing under the heavy shelling. It was the opening salvo in a nearly four-hour assault in February by around 500 pro-Syrian government forces — including Russian mercenaries — that threatened to inflame already-simmering tensions between Washington and Moscow.

In the end, 200 to 300 of the attacking fighters were killed. The others retreated under merciless airstrikes from the United States, returning later to retrieve their battlefield dead. None of the Americans at the small outpost in eastern Syria — about 40 by the end of the firefight — were harmed.

[Eyebee Teepee]

Russia: 11 MM barrels/day

So, the US is going to supply half (30MM of 60MM) of this special supplement, despite places like Germany not buying a lot from us, and the "rest of the 30 countries" will supply the other half.

And it's about 3 days of Russian production.

Now, if we were sitting on that 600MM barrels at a cost at this date of say $30/barrel, then we ought to supply at least 30 days worth (150MM barrels, 1/4 of our reserve) and make bank at $90/barrel.

[Eyebee Teepee]

Intended to insulate the United States from supply shocks, it has been used more as a political tool for presidents facing angry voters when gas prices are high.

For example, Biden released 50 million barrels in November -- the largest SPR release on record -- when gas prices were about $3.50 a gallon.

so, 3 months ago 50MM barrels - purely for US consumption - which was a matter of days when gas was $3.50. Today it's $3.61.

So, for a $0.10 higher gas price, we're going to release 60% as much, and it ain't all going to US consumption.

However, I have no doubt it will be spun favorably to Brandon.

[kwong7]

From my understanding oil is a commodity and has a price based on supply and demand where OPEC controls the production and output of oil to generally control the price of oil to be profitable and sustainable for their interests. America can domestically drill oil but it can only sell oil at the price in accordance with OPEC. Now my question is: Can the US use the SPR as a loophole to sidestep the price that OPEC influences by releasing oil from the reserve to dilute the costs domestically, then use domestically drilled oil (under some Executive Order) that's at a price lower than the spot price of WTI to replenish the oil that was taken from the SPR. Or would that just destroy our credibility of being a somewhat free market?

As of today WTI crude trades at $83.54; not sure what the domestic cost of producing a comparable barrel. Years ago it was $23 and years ago OPEC countries needed oil to be at least $38/barrel to sustain their social welfare systems.

[VA Yankee]

Oil is a world market and we are not a nationalized industry, even with the release we can't say who will buy it. Last time US refineries didn't need it and it was sold on the world market I anticipate the same thing will happen again.

Remember the US Oil Industry is not cutting their prices any and they are just as eager to see $100 a barrel oil return as Saudi Arabia and the others.