Why President Obama Should Refill the U.S. Strategic Petroleum Reserve

After several Arab countries implemented a destructive oil embargo against the United States in 1973, the U.S. created the Strategic Petroleum Reserve. Like many other oil-importing states, the U.S. now keeps a large supply of oil in reserve to hedge against threats to the national oil supply.

Source

This is an older article, but is relevant today. Mainly because of current events.

With Saudi Arabia trying to kill fracking, and flooding the market with 'cheap' oil. There is no better time to add to the reserve.

It's only a matter of time before the other shoe drops.

At current prices we could double or triple our reserve capacity.

At that rate, the SPR (if full) could replace 100 days of imports in the event of a supply disruption.

At today's prices with them falling there is no better time to buy.

That is if the current administration is 'smart'.

These prices will not last forever.

a reply to: neo96

This seems like a no brainer.

Probably why they won't do it. The right people won't make enough money.


Maybe they will do this to prop up North American Shale until the prices go back up. Buy from them at a higher price to keep them in business.

a reply to: infolurker

The right people won't make enough money.

That is what it is all about.

In the land before Time, prices of oil fluctuated on the market but hardly changed at the pump. We were told that the oil we are purchasing now was bought before the price drop so we have to pay the old higher price. If the market price went up however, then the price at the pump went up right away. NO explanation.

I worked at a gas station during the oil shortage and the owner never had trouble getting more gas. Its just that during the "crisis" people bought more gas than usual, draining the tanks before the next tanker truck delivery, so it appeared as though there was a shortage.

Ever since then I don't believe a word they tell us about oil.

a reply to: neo96

I am sure whoever keeps the supply "topped off" gets a much better price and keeps the SPR full at all times. There is no scenario in my mind that would have it run dry and stay dry.

I am not too sure who actually oversees the supply. I know the POTUS can use it, but I'm not sure if he has oversight. Maybe another bloated department does. To which I can guarantee they get it cheap but charge us three times as much.

a reply to: havok

Today, three of the four original Petroleum Reserves (NPR-1, NPR-2, and NPR-4) have been sold or transferred to the Department of the Interior, as have the three Oil Shale Reserves. The only remaining oil reserve managed by the Department of Energy is the Teapot Dome field (NPR-3) in Casper, Wyoming, which is now a stripper field that also serves as the Rocky Mountain Oilfield Testing Center. However, DOE operation of the Reserve will also soon come to an end. On June 27, 2013, the Secretary of Energy reported to Congress the Department's intent to sell all right, title and interest in NPR-3 through a public competitive bid process. NPR-3 is scheduled to be sold and transferred to new private ownership by the end of calendar year 2014.

energy.gov...

That's just ridiculous.

Itd cost about 70 billion dollars to triple the U.S SPR.

Cant see congress approving that.

a reply to: neo96

It's all a scam! If oil prices are rock bottom, why did gas prices only drop half a dollar or so????? We should see $.80 gas AGAIN, like it was when I was younger!! There is no reason for high gas prices at the pump if the oil price is rock bottom right now!!

This is an absolute scam and a joke when the people don't suspect anything is going on!! What, did the government tax it more so we pay the same when oil is much less??? Let's just tax it more, make people pay the same at the pump and we can roll in the money....What an effing joke!! I hate filling up my truck when I know for a fact gas prices should be much lower RIGHT NOW!! It feels bad getting scammed every time you fill up your tank, when your heating bill comes in, anytime oil is involved...It is all government taxing and scamming...

originally posted by: Dabrazzo
Itd cost about 70 billion dollars to triple the U.S SPR.

Cant see congress approving that.

LOL that's pocket change for them these days.

originally posted by: neo96

..../

With Saudi Arabia trying to kill fracking, and flooding the market with 'cheap' oil. There is no better time to add to the reserve.

This I find questionable since as far as I am aware the Saudis have never stated they want to kill-off fracking. However, a greater economic toll is being taken out on Russia by these drops in prices and jeopardizing cohesion within BRICS, probably because of the huge Russia-Chinese energy deals while prices bottom out.

So, both the killing-off of fracking and the BRICS situation are purely speculation, but from a circumstantial evidence vantage, the BRICS issues I believe carry more weight as a credible reason for the oil price drops.

Since Saudi is beholding to the US to keep their monarchy in power, I don't expect the Saudi's are going to bite the hand that supports their regime.

Cheers - Dave

It's not full at all times?

Surprise...

Don't worry, its intentional



Apparently gas has halved in price recently- as the dollar went up. I missed it, because I'm too busy keeping my head in the sand busting ass to make the bills. Just like they want.

I vaguely recall knowing about a reserve- something about giant empty ass salt caverns pumped full of oil. I just assumed it was full- Typical ignorant american, right here...

a reply to: bobs_uruncle

This I find questionable since as far as I am aware the Saudis have never stated they want to kill-off fracking

They have.

Saudi Prince: Fracking Is Threat To Kingdom

No speculation on Saudi.

Since Saudi is beholding to the US to keep their monarchy in power, I don't expect the Saudi's are going to bite the hand that supports their regime.

They have been biting us for decades funding Sunni terrorists around the world.

A WikiLeaks released memo from the United States Secretary of State sent in 2009 asserted that the primary source of funding of Sunni terrorist groups worldwide was Saudi Arabia.[67]

en.wikipedia.org...

By all rights they need to be sanctioned, their oil banned from here, and put on the state sponsors of terrorists.

Right along with their cousins Iran.

But we don't have a potus from either side with the stones to do that.

originally posted by: intrptr
In the land before Time, prices of oil fluctuated on the market but hardly changed at the pump. We were told that the oil we are purchasing now was bought before the price drop so we have to pay the old higher price. If the market price went up however, then the price at the pump went up right away. NO explanation.

I worked at a gas station during the oil shortage and the owner never had trouble getting more gas. Its just that during the "crisis" people bought more gas than usual, draining the tanks before the next tanker truck delivery, so it appeared as though there was a shortage.

Ever since then I don't believe a word they tell us about oil.

I can add to your experience. I know an oil tanker captain that was carrying oil during the "crisis". At the time, there were tankers offshore being told to wait.

It was an intentionally created crisis, though I never cared enough to dig any deeper into motive, but definitely believe the source.

a reply to: bobs_uruncle

However, a greater economic toll is being taken out on Russia by these drops in prices and jeopardizing cohesion within BRICS, probably because of the huge Russia-Chinese energy deals while prices bottom out.

Another type of sanction, good point. Lets see who outlasts who.

How many times can we shoot ourselves in the foot hoping it will hurt the "enemy"?

a reply to: Halfswede

It is not some big tank that is filled and emptied, but rather what is available

Thats exactly what it is for many countries, the UK keeps strategic reserves in NATO terminals all over the coastlines buried under the ground and has fairly extensive LNG storage for strategic reserves. Norway uses natural cave formations with enormous shore tanks filled with crude/diesel/jet.

originally posted by: neo96
a reply to: bobs_uruncle

This I find questionable since as far as I am aware the Saudis have never stated they want to kill-off fracking

They have.

Saudi Prince: Fracking Is Threat To Kingdom

No speculation on Saudi.

Since Saudi is beholding to the US to keep their monarchy in power, I don't expect the Saudi's are going to bite the hand that supports their regime.

They have been biting us for decades funding Sunni terrorists around the world.

A WikiLeaks released memo from the United States Secretary of State sent in 2009 asserted that the primary source of funding of Sunni terrorist groups worldwide was Saudi Arabia.[67]

en.wikipedia.org...

By all rights they need to be sanctioned, their oil banned from here, and put on the state sponsors of terrorists.

Right along with their cousins Iran.

But we don't have a potus from either side with the stones to do that.

I stand corrected ;-)

A seriously unimportant "Saudi Prince" (one of thousands), used his Twitter account (seriously now, he's so important he has to use Twitter, ROFL) to inform the minister "Ali al Naimi and other government heads" that he (the one of thousands of Princes) has an opinion. Well, that just impressed the hell out of me LOL.

I do agree that something has to be done about the Saudi's, with the 911 connection, funding terrorism, the wahabi's, etc. and that the US does have a ball-less president in Barack Obamanista, but that's the way it works ;-) He's impotent, he's on a leash, his handlers won't let him do anything he's not instructed to do. I mean seriously, you want "that guy" making real decisions that effect a nation LOL.

Cheers - Dave

a reply to: neo96

pocket change...

That's a fair assessment Neo, but I'm sure they'd rather it stayed in their pocket.


Unless they can triple that in profit from the reserves they wouldn't bother.

Sunni terrorists...

Wahhabi*.
& there are major differences before anyone says they're an offshoot of Sunni Islam.
I say this because once a Sunni crosses that line, they're going by Wahhabi teachings.

However, & ironically, by relying on that Saudi Oil the U.S are also funding those same terrorists.


Back on topic;

time to buy.

From who, may I ask?

originally posted by: intrptr
a reply to: bobs_uruncle

However, a greater economic toll is being taken out on Russia by these drops in prices and jeopardizing cohesion within BRICS, probably because of the huge Russia-Chinese energy deals while prices bottom out.

Another type of sanction, good point. Lets see who outlasts who.

How many times can we shoot ourselves in the foot hoping it will hurt the "enemy"?

A true but unfortunate statement (I'd go more though with shooting oneself in the groin). Foreign policy in the US has seriously screwed things up. Usually governments make the foreign policy decisions based on the value of the decisions for interaction, to the people et al. However, there has been a serious trend after the second world war to "screw the people" let's do what business wants because they give us our campaign funding. So the trend has shifted benefit from the many (population) to the few (politicians and their handlers). This is both an untenable and unsustainable approach even within a totalitarian state. I am not sure exactly how the end game disaster will play out, but it won't be pretty and the "losers" won't be the handlers, it will be everyone else.

Cheers - Dave

Are they not full?

a reply to: neo96

Isn't spending the role of Congress?

How is Obama to be smart, or dumb, for not utilizing powers that are not granted him?

That said....it certainly would e wise to buy low and shore up reserves.