Congress Votes to Stop Oil Deliveries to Reserve

Discussion in 'Politics' started by KenH, May 14, 2008.

  1. KenH

    KenH
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    Jerry Taylor, senior fellow, Cato Institute:
    Suspending fill orders might well reduce oil prices by $10-30 a barrel –- all other things being equal. That price reduction would certainly be noticed at the pump. In a perfect world, however, the Senate would go further and actually release inventory. The SPR is capable of releasing 4.3 million barrels a day into the market -- a figure slightly larger than Iran's daily oil production. In fact, the SPR could add about 5.9 percent to the world's daily oil supply for approximately 163 days before the reserve ran dry. If there's a bubble in crude oil markets, a major, sustained SPR release would certainly end it. And since I see no good reason for an SPR in the first place (what evidence do we have that private actors under-invest in oil inventories?) draining the SPR and ending the program would be a tremendous boon to the treasury and almost certainly a boon to motorists.

    - www.cato.org/pressroom.php?display=ncomments&id=21

     
  2. TomVols

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    :thumbs: Good post Ken. The liberterian Ken is back! :thumbs:

    I am not ready to jettison the SPR yet, but I wholeheartedly agree with the cessation of stockpiling. We're hoarding supply and taking oil off the market, driving up prices, since the demand has increased from India, China, et.al. Our Congress seems bent on NOT solving our energy issues. Drilling, exploration, and a reformed SPR are just too much to ask of this pathetic excuse for a legislature. However, we finally have one ray of sunlight. A blind hen just got its allotted kernel for the day :)
     
    #2 TomVols, May 14, 2008
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  3. Ed Edwards

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    SPR = Strategic Petroleum Reserve

    How many thousand pounds of bombs will that SPR deliver on target in North Korea (for example) from the bomb assembly points in the USofA? (I'm hoping we don't out-source bombs yet.
     
  4. hillclimber1

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    Seems like a pretty good reason to me......

    Having a half of year's worth of oil in reserve, in light of the troubles in the middle east, is a bad idea..HOW???
     
    #4 hillclimber1, May 14, 2008
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  5. KenH

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    The users of oil keep their own inventories of oil. The federal government doing so is an unnecessary and expensive redundancy paid for by taxpayers. Also, while noting the fungibility of oil, we import very little of the oil that we use from the Middle East.
     
  6. hillclimber1

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    I believe 16% of our oil comes from the middle east. That's a very significant amount.

    May be redundant, may be expensive, but very prudent, IMO.
     
  7. Bro. Curtis

    Bro. Curtis
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    Does anybody really think the general population will ever see drop one of the SPR ? That's going into tanks, warships, & limos for the war brass. The rest of us will do without.
     
  8. Hardsheller

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    I fail to see that this helps.

    The current problem is a lack of refineries in this country.

    Because of all the environmental regulations we have not built refineries in this country to keep up with our growth.

    The word I hear from the US Oil Fields is that the Pipelines are full.
     
  9. hillclimber1

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    The general population has seen token releases from the SPR to give the allusion of well being.

    Those machines of war, may desperately need these SPR, particularly in these troubled times...

    I still feel it penny wise and pound foolish to dissolve this asset.
     
  10. KenH

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    That's about 16% of our imported oil. So only about 8% of our daily oil usage comes from the Middle East.
     
  11. LeBuick

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    Sad but true, they make us feel secure with reserves but using reserves means ration time and the only we'll see is for lights and heat...


    Do your duty, take the bus!!!
     
  12. Ed Edwards

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    Ed's Adage Tracker (EAT):

    18th Century (1701-1800) - You can't have your cake and eat it too!

    21st Century (2001-2100) - You can't have your SPR and and your SUV too!

    SPR = Strategic Petroleum Reserve
    SUV = Sports/Utility Vehicle (AKA: 4-wheel drive)
     
  13. hillclimber1

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    Correct....my mistake....
     
  14. Ed Edwards

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    President Bush Trumps Congress

    President Bush Trumps Congress!

    President Bush has asked Saudi to produce 300,000 BPD* more for the world market. Saudi will do it shortly. This is ten times as much as Congress saved from the SPR (30,000 BPD).
    Compare current US oil usage (2006): 21 Million BPD



    BPD = barrels per day
    SPR = Strategic Petroleum Reserve
     
  15. KenH

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    Not so!

    " Oil Minister Ali al-Naimi said the kingdom had decided May 10 to increase production, not in response to Bush but because customers, mostly in the United States, had asked for it. He said it was doing what it could. "When supplies from Venezuela and Mexico were reduced to the U.S., who supplied the difference?" Naimi said. "We supplied, to the tune of an additional 300,000 barrels per day ... for our customers in the U.S. So how much more can we do?" "

    - www.startribune.com/world/19032649.html?location_refer=Gophers
     

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