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

a reply to: Halfswede

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

More perceived crisis. The modus operand never changes. Older people hear all this emergency talk stuff in the media these days and chuckle. They've seen it all before.

The manufactured crises are there to increase profits. They may appear to be humanitarian crises, but only so much as the people in general go along with them to justify another war or price increase.

quick rundown: In 2005 an act was passed to increase reserve capacity. The DOE has authority to spend budgetary dollars to maintain capacity, per presidential policy. In 2011, however, the funds earmarked for expansion were pulled by Congress. In October of this year the GAO recommended reducing reserve capacity, with support from the DOE.

So it looks like there may be room for Obama to fill to the currently approved capacity. But expansion would require Congress to reverse its 2011 law.

Or we could just go completely fossil fuel independent and here and cut ties with the ME since Texas and South Dakota alone now are shown to have as much oil as all of our fuel masters OPEC control......

Then we wouldnt have to rely on them and it would take a huge chunk of our own money out of their pockets......not to mention it would bolster our economy to the most wealthy its ever been.........


But nah, why do that, it would only better the lives of every American on US soil........

originally posted by: bigfatfurrytexan
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.

I know sanctions are the role of congress.

Except for the fact today with the stoke of his mighty pen. Levied more sanctions against NK for Sony.

I love it!

Now congress suddenly 'matters'.

originally posted by: ManBehindTheMask
Or we could just go completely fossil fuel independent and here and cut ties with the ME since Texas and South Dakota alone now are shown to have as much oil as all of our fuel masters OPEC control......

Then we wouldnt have to rely on them and it would take a huge chunk of our own money out of their pockets......not to mention it would bolster our economy to the most wealthy its ever been.........


But nah, why do that, it would only better the lives of every American on US soil........

The church of climatology, and the Holy Trinity of Solar, wind, and Hydro won't stand for it.

We could be energy independent if we wanted.

a reply to: neo96

The Strategic Petroleum Reserve (SPR) was designed to protect us in the event that a foreign crisis or war interrupted our oil supply.

US Oil production has skyrocketed to it's highest level in 25 years and North American production (US + Mexico + Canada) is at it's all time historical high for crude oil production.

And US Oil Demand is the lowest it has been in 15 years due to improved fuel efficiency.

We are on our way to not being dependent on the unpredictable and violent middle-east and I see no rational reason why we should pay the middle east a huge lump sum for oil that we do not need, nor will need in the immediate future, but I am sure if I dig enough I will discover certain elites amongst the oil barons pushing a propaganda line in order to fill their coffers further. I can't see how this wouldn't drive up oil prices in the USA? A huge surge of our own government suddenly competing with US consumers for oil?...when the price has finally come down?

Sorry...can't make sense of this...I am sure it is a pay day for someone, but not the US consumer.

At the end of 2012 US crude oil exports exceeded imports.
That was at the $90 a barrel level.
There is less need for a reserve if we have ample pumping capacity with sufficient redundancy.

How much additional cost is there to build oil storage facilities, monitor and provide security for those facilities?
That cost goes up over time, oil just sitting there for 50 years might be quite expensive when it is finally used.

If we float along taking advantage of cheap foreign oil without buying up extra for reserves there is less pressure on price.
If we shut too many of our current domestic drilling operations it might take two years to get them back producing again.

They must be shifting some of the cost of storage into the cost of keeping unused drilling infrastructure ready.
When the oil prices have clearly bottomed we will probably top up the current national reserves for that 100 day bargaining buffer.

The SPR is currently all but completely full with almost 700 million barrels of it's maximum 727 million - this is a hard physical limit - essentially the size of the holes in the ground.

Another 160 million barrel site was planned - but was canned in 2011 due local environmental opposition - power to the people and all that!