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Started By
Message
White House Issues Notice Of Sale For 20 Million Barrels Of Oil From SPR
Posted on 7/26/22 at 6:14 pm
Posted on 7/26/22 at 6:14 pm
quote:
The Biden Administration has announced that it is releasing the next Notice of Sale for crude oil from the nation’s Strategic Petroleum Reserve (SPR) for 20 million barrels.
As part of the Tuesday announcement, the White House cited a “new analysis” from the Department of Treasure that estimates that the previous SPR releases that the White House pegs at 125 million barrels—along with the releases of crude oil from foreign partners as well—has reduced gasoline prices by “up to about 40 cents per gallon”. Not compared to what they were, but “compared to what they would have been absent these drawdowns.”
The Biden Administration also announced steps to repurchase oil for the SPR “in future years, likely after FY2023” to help encourage more nearterm supply.
quote:
The press release stressed the impact the SPR releases have had so far, in response “to the energy market disruptions posed by Russia’s invasion,” referring to the “Putin price hike.”
Today’s announcement is for the fifth sale that President Biden has authorized from the SPR. The announcement included a proposal for fixed-price forward purchases of crude to replenish the SPR “and encourage short-term production.” These fixed price contracts, according to Tuesday’s statement, will afford producers the assurance to make investments, “knowing that the price they receive when they sell to the SPR will be locked in place”, and protecting them from price erosion.
The proposal for the fixed price has yet to be finalized, but the Department of Energy is proposing rulemaking this week to allow for these purchases.
LINK
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Posted on 7/26/22 at 6:15 pm to ragincajun03
Well how else do you think all the politicians and their entourages can fly around on vacation?
Posted on 7/26/22 at 6:19 pm to ragincajun03
WTF
Posted on 7/26/22 at 6:19 pm to ragincajun03
Won’t someone think of the crawfish prices?!?
Posted on 7/26/22 at 6:20 pm to ragincajun03
quote:
for 20 million barrels.
WHEW!! That takes care of 1 day of US petroleum consumption per day. Glad you are going to wave your hat and lift your Ensure to cheers this great accomplishment when gas prices go down
Posted on 7/26/22 at 6:22 pm to ragincajun03
Let’s just keep draining our supply that’s meant for when the country is starving in the name of a Hail Mary attempt to boost poll numbers prior to midterms. Way to go Brandon!
Posted on 7/26/22 at 6:30 pm to ragincajun03
It's not necessarily a bad thing if govt is taking up more dollars per barrel for replacement of SPR to help the retail. It can definitely become a problem if abused tho which is a good argument against it.
It's good that we have SPR reserves and it might be a good idea to increase those reserve requirements much like banks were required to maintain higher capital requirements after the great recession.
Think of it as a rainy day fund. If you are 70 you want to be more conservative with less risk in your investments. Increasing the SPR reduces medium/short term risk because because you have excess reserves.
The government taking on more reserves reduces the capacity costs for Petros/refineries companies. Finding the right balance.
There needs to be an overhaul of regulatory bodies. Floors need to be set and the US needs to say frick OPEC somewhat and the OG energy business needs better SROs much like the financial industry with FINRA and the MSRB for municipalities. They aren't perfect for sure but in general they do act as a decent buffer along side the SEC.
It's good that we have SPR reserves and it might be a good idea to increase those reserve requirements much like banks were required to maintain higher capital requirements after the great recession.
Think of it as a rainy day fund. If you are 70 you want to be more conservative with less risk in your investments. Increasing the SPR reduces medium/short term risk because because you have excess reserves.
The government taking on more reserves reduces the capacity costs for Petros/refineries companies. Finding the right balance.
There needs to be an overhaul of regulatory bodies. Floors need to be set and the US needs to say frick OPEC somewhat and the OG energy business needs better SROs much like the financial industry with FINRA and the MSRB for municipalities. They aren't perfect for sure but in general they do act as a decent buffer along side the SEC.
Posted on 7/26/22 at 6:33 pm to Abstract Queso Dip
What they are doing is idiotic. We will be at our lowest levels ever once Brandon is finished. Especially the medium sour crude our refineries need. Then china and Russia will want to engage a larger war and we will have less than 2 years reserves. Also, these idiots will be buying oil back at $180 a barrel to fill this back up. This is a fake price control method to try and stay in office - frick him.
This post was edited on 7/26/22 at 6:37 pm
Posted on 7/26/22 at 6:34 pm to Abstract Queso Dip
Strategic Midterm oil reserve, just letting everyone know the new coined name
Posted on 7/26/22 at 6:37 pm to ragincajun03
You can't even make up the amount of stupid in this administration.
Posted on 7/26/22 at 6:40 pm to IT_Dawg
quote:
WHEW!! That takes care of 1 day of US petroleum consumption per day.
This seems on its face to be a reasonable conclusion but the remarkable short-term inelasticity of crude produces a very large change in price with a very small change in supply if that supply shifts just above or just below the demand curve. Just look at the demand vs supply curve for crude over time and note the wild price swings with very little demand/supply mismatch.
The other interesting issue is that if you view the Fed as a business the sale down of the SPR makes a lot of sense. Selling off when the price is high not only stabilizes or reduces the price but it allows the SPR to be topped off at a lower price which results in profit.
Posted on 7/26/22 at 6:41 pm to ragincajun03
These people are the dumbest humans on earth
Posted on 7/26/22 at 6:44 pm to Obtuse1
Hey genius - oil is not going down anytime soon, especially not under this dumbass admin and with war in Europe and OPEC producing over 2.8 million barrels BELOW their set quota since they are tapped out.
This is irresponsible and dangerous. They are talking about buying back to refill late next year to meet regulations - that’s gonna be an extremely hefty buyback.
This is irresponsible and dangerous. They are talking about buying back to refill late next year to meet regulations - that’s gonna be an extremely hefty buyback.
Posted on 7/26/22 at 6:46 pm to ragincajun03
The pandering for votes bullshite of mortgaging our future is an age old tactic of every administration in one way or another.
This one though, it sets a new record of low in the categories of "high stupidity" or "blatant robbery". I haven't determined yet which of the two is correct.
Maybe it's both.
This one though, it sets a new record of low in the categories of "high stupidity" or "blatant robbery". I haven't determined yet which of the two is correct.
Maybe it's both.
Posted on 7/26/22 at 6:56 pm to BigWillyMetry
quote:
Also, these idiots will be buying oil back at $180 a barrel to fill this back up.
Maybe. Maybe not.
But it's all part of the plan. They want our reserves dry as an excuse for the clean energy push.
Posted on 7/26/22 at 6:56 pm to HubbaBubba
Feel like in my naive brain I always pictured an army of really smart people behind every leader advising them what to do for the greater good with the costs and benefits of every decision. It’s terrifying when your leader is actively virtue signaling like a Twitter poster and hiring preschool teachers to be VP because of their skin color and dudes that want to cut their wieners off. But here we are… yayyy
Posted on 7/26/22 at 6:57 pm to ragincajun03
quote:
Not compared to what they were, but “compared to what they would have been absent these drawdowns.”
frick you, Joe.
Posted on 7/26/22 at 7:06 pm to ragincajun03
Does it mention if they are selling it through Hunter Biden's company again this time?
Posted on 7/26/22 at 7:15 pm to ragincajun03
The SPR has turned into quite the political third rail. 
Honestly, it needs to be operated by an independent agency and given the freedom to buy/sell at will based on the market direction. It’s such a bureaucratic mess that they can’t really efficiently respond to price spikes right now, and the political grandstanding undermines that ability even more.
The problem is that nobody in Congress or the White House will ever want to give up that power - especially now that Congress has figured out they can tap the SPR for budgetary reasons.
Honestly, it needs to be operated by an independent agency and given the freedom to buy/sell at will based on the market direction. It’s such a bureaucratic mess that they can’t really efficiently respond to price spikes right now, and the political grandstanding undermines that ability even more.
The problem is that nobody in Congress or the White House will ever want to give up that power - especially now that Congress has figured out they can tap the SPR for budgetary reasons.
Posted on 7/26/22 at 7:24 pm to ragincajun03
Ehh some states are paying more than 40 cents in taxes.
Government continues to frick us.
Government continues to frick us.
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