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Message
Washington Has Trouble Refilling The SPR After 220 Million Barrel Draw
Posted on 1/10/23 at 7:40 am
Posted on 1/10/23 at 7:40 am
quote:
After drawing over 221 million barrels of oil from the Strategic Petroleum Reserve (SPR) in 2022, Washington is having a tough time refilling it in the New Year, with the Department of Energy (DoE) rejecting the first offers on the grounds that they failed to benefit taxpayers.
The DoE has by now received several offers for February purchases to refill the SPR, according to both Bloomberg and Reuters. However, those offers have been rejected as too expensive or failing to meet other requirements.
For February, the plan was to purchase 3 million barrels, ideally when oil dropped to around $70 per barrel. This 3-million-barrel pilot program would have given sellers a fixed price for future deliveries and is in contrast to the DoE’s normal operating procedure, which had seen it purchase oil for faster delivery without fixed-price contracts.
Right now, WTI is trading around $75/$76 per barrel, and new data from the Energy Information Administration (EIA) released on Monday shows another 0.8 million barrel draw from the SPR.
According to Bloomberg, citing unnamed sources “familiar with the matter”, the DoE will now postpone its originally planned February purchases and embark on a new approach for fixed-price offers.
quote:
The rejected bids are prompting speculation that refilling the SPR will be challenging, at best.
The plan to fill the SPR, which has reached its lowest level since 1984, might not be attractive enough to sellers, despite the DoE’s efforts at enticement.
Additionally, the Wall Street Journal speculates that the DoE may not have enough funding to refill the SPR completely. According to WSJ, the DoE has $.48 billion in purchasing power. At the desired $70 per barrel, that would give it enough funding to refill the SPR to 440 million barrels.
LINK
That last paragraph…possibly not even enough money on hand to refill at $70/bbl.
Wow.
Posted on 1/10/23 at 7:52 am to ragincajun03
quote:
That last paragraph…possibly not even enough money on hand to refill at $70/bbl.
All that money went to Ukraine for kickbacks, which was much more important than our silly country.
Posted on 1/10/23 at 7:53 am to ragincajun03
Trump wanted to buy it super cheap and they said no. The release stopped right before midterms. Another dem idea putting us in a bad spot.
Posted on 1/10/23 at 7:56 am to ragincajun03
Prepare thy anus for the upcoming fuel prices.
Posted on 1/10/23 at 7:57 am to ragincajun03
quote:
Washington is having a tough time refilling it in the New Year, with the Department of Energy (DoE) rejecting the first offers on the grounds that they failed to benefit taxpayers.
well I, for one, feel better. this says they do actually do things with us in mind.. I was beginning to wonder......
Posted on 1/10/23 at 8:15 am to tgerb8
he better hurry up and refill it before china opens back up. when that happens they say oil will go to 140. better buy some cheap russian oil on the low down.
Posted on 1/10/23 at 8:17 am to ragincajun03
The answer is simple....drill like hell here in the US!
Posted on 1/10/23 at 8:21 am to ragincajun03
No sh!t, the whole purpose was to weaken the country and destroy oil.
Posted on 1/10/23 at 8:27 am to ragincajun03
Article is intentionally misleading, the SPR is usually refilled by in kind payment, typically nothing is "purchased".
Posted on 1/10/23 at 8:36 am to Bamafan24
Democrats do two things.....
1) They make war, and
2) They steal. They steal elections, they steal Social Security, they steal Oil & Gas, Top Secret Documents. And soon they will steal 401k's and IRA
Plus you can't believe a single thing they tell you.
It's in their DNA
1) They make war, and
2) They steal. They steal elections, they steal Social Security, they steal Oil & Gas, Top Secret Documents. And soon they will steal 401k's and IRA
Plus you can't believe a single thing they tell you.
It's in their DNA
This post was edited on 1/12/23 at 6:28 am
Posted on 1/10/23 at 8:44 am to ragincajun03
quote:
At the desired $70 per barrel, that would give it enough funding to refill the SPR to 440 million barrels.
Lol. It’s trading at 75 NOW. In the middle of dead nuts January.
After all the shite they talk about the oil companies… they want them to take a 5 dollar a barrel loss for this stupid administration?? Really??
Posted on 1/10/23 at 8:44 am to ragincajun03
quote:So they requested a long-term fixed price, and they were disappointed it's above current market... in an inflationary cycle?
This 3-million-barrel pilot program would have given sellers a fixed price for future deliveries and is in contrast to the DoE’s normal operating procedure, which had seen it purchase oil for faster delivery without fixed-price contracts.
It's like they have zero idea how any of this works.
Posted on 1/10/23 at 8:49 am to ragincajun03
quote:
The plan to fill the SPR, which has reached its lowest level since 1984, might not be attractive enough to sellers, despite the DoE’s efforts at enticement.
Emergency release of the strategic reserve due to limited supply of oil.
Do absolutely nothing to encourage investment in expanding production
Wait 6 months
Then act surprised when buying millions of barrels of oil is expensive as frick.
Absolute stupidity
Posted on 1/10/23 at 1:13 pm to ragincajun03
quote:
on the grounds that they failed to benefit taxpayers.
When has this administration done anything that 'benefited the taxpayers" ??
Why start now?
Posted on 1/10/23 at 1:15 pm to ragincajun03
I hear Russia has $40/b oil to sell
Posted on 1/10/23 at 1:37 pm to ragincajun03
quote:So...$480 Million? That doesn't sound right.
has $.48 billion
Posted on 1/10/23 at 5:46 pm to ragincajun03
Knowing this administration they will probably go to Russia or Iran for discounted oil
Posted on 1/10/23 at 5:48 pm to tgerb8
quote:lol. Riiiight
well I, for one, feel better. this says they do actually do things with us in mind
Posted on 1/10/23 at 5:50 pm to DaBike
quote:if they can buy it at $40 you won't hear a peep out of me
Knowing this administration they will probably go to Russia or Iran for discounted oil
Posted on 1/10/23 at 7:02 pm to OU Guy
quote:
Russia has $40/b oil
cshill said so and was happy about it.
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