U.S. Strategic Oil Reserve level 40% down from a year ago

Discussion in 'Political Opinions & Beliefs' started by kazenatsu, Jan 7, 2023.

  1. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    The current U.S. strategic oil reserve is at a level of 372.28 million barrels (as of December 30, 2022).

    This is down from 617.77 a year ago (October 1, 2021). That's a nearly 40 percent drop.

    (source for numbers: YCharts US Crude Oil in the Strategic Petroleum Reserve Stocks)

    Forbes has an article titled "The Strategic Petroleum Reserve is at its Lowest Level Since 1984 "
    (by the way, the U.S. population was 29 percent lower in 1984 than it is today)

    The Biden Administration drained the strategic oil reserves to try to help lower prices, and for political gain, amidst high inflation and putting sanctions against Russian oil.

    Many Biden supporters claimed that Biden was going to sell off some oil in the reserves and then quickly rebuy later when prices would go back down.

    But prices are now down and the strategic reserve has still not been refilled.

    These strategic reserves are important for America's national security, so the country has some extra oil in case there is any emergency like large international war.

    Or maybe there are many of those on the Left who think that savings are no good unless it is spent, or seem to hold that attitude. Maybe we shouldn't be surprised that they would hold the same view about the strategic oil reserves that they do over the national debt and spending? Spend spend spend, spend it all now, like there is no tomorrow.

    In my opinion this is kind of irresponsible, was a cheap dirty tactic for political gain, at the expense of longer-term American interests and security. Keep the oil prices down so Americans would not notice the extent of inflation, and make the economy seem "good". (Never mind the position the U.S. will be in later and the situation then)
     
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  2. Melb_muser

    Melb_muser Well-Known Member Past Donor

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    I'll let you find your own twisted partisan arguments, but I agree in the sense that they should not have necessarily kept drawing on the reserves, even after prices dropped.
     
    Last edited: Jan 7, 2023
  3. Melb_muser

    Melb_muser Well-Known Member Past Donor

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    Open question. Are these reserves actually sold for profit? Ie can the US government buy when prices are low and then sell when prices are high?
     
  4. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    And they should have begun rapidly filling the reserves once prices dropped. It was irresponsible not to.
    But filling them would cost money, force Democrats to make some cuts in other areas of the budget, and raise the price of oil. (Not a huge overall effect, but nevertheless still a significant one) That wouldn't make the economy look like it was doing so well, and it wouldn't make Biden look like he was doing a "good job", in the eyes of the voters.

    There's still time, so maybe we can still wait to see. If the reserve level starts making significant progress going up in the next 6 months.
    But I'm pretty skeptical.
     
    Last edited: Jan 7, 2023
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  5. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Yes, the reserves are both bought and sold for profit.

    Theoretically, the government could buy when the prices are low and sell when the prices are high, making a profit, while at the same time helping to stabilize prices in the market.
    That's what supporters of Biden's policies point out.

    The problem is, there's always an innate tendency for government to easily overspend and then be very reluctant to start saving to bring things back to where they were before; and trying to foresee what the market will do and what's in the future can be risky. (For example, if oil prices had continued to go up, and then the U.S. found itself facing a huge war with Russia and China, the U.S. would be in much worse position, having so much of the oil reserves depleted)

    There's a reason that this strategic oil reserve exists, and it is for big emergencies. Using up that oil to deal with smaller economic issues and market fluctuations risks leaving the country more vulnerable to bigger emergencies that the oil reserve was intended for.
     
    Last edited: Jan 7, 2023
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  6. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    And if the government does refill the reserve sooner or later, then what they have done is raided an emergency savings stockpile, all for short term quick benefit, with little regard for what the future holds.

    It's like people stranded on a ship lost at sea, and they throw a big banquet and eat up a big portion of their food because they expect it will not be too much time until they are found and rescued.
     
    Last edited: Jan 7, 2023
  7. Melb_muser

    Melb_muser Well-Known Member Past Donor

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    The two previous posts make sense.
    This one doesn't so much.
     
  8. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Why doesn't it make sense to you?
    That oil was being saved in case there is an emergency in the future. Something like the 1973 Oil Crisis, and all the economic woe it brought to the U.S. economy, contributing to a major Recession.
    Or a big war in the Middle East that could cut off the world supply of oil, something that's not an unlikely possibility at some point in the future.
     
    Last edited: Jan 7, 2023
  9. Melb_muser

    Melb_muser Well-Known Member Past Donor

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    Wow.
    Feel free to pick and choose your crises. The way conservatives were whining high gas prices brought on by the war in Ukraine was the end of the world.

    What they should be doing is filling the reserves again.
     
    Last edited: Jan 7, 2023
  10. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Is the Biden Administration going to begin quickly refilling those reserves soon?
    Do Democrats even care?
     
  11. Melb_muser

    Melb_muser Well-Known Member Past Donor

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    I suggest you ask them.

    I don't know.
     
  12. Chuck711

    Chuck711 Well-Known Member

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    President Biden is a step ahead............

    From Dec 16

    The U.S. Energy Department said on Friday it will begin buying back oil for the Strategic Petroleum Reserve, or SPR, the first purchase since this year’s record 180 million barrel release from the stockpile.

    The department will buy up to 3 million barrels for delivery in February, a senior official told reporters.
     
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  13. straight ahead

    straight ahead Well-Known Member

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    Oh, he's a step ahead alright

    Buy high, sell low!
    [​IMG]

    Or was that the other way around.....
     
  14. Pro_Line_FL

    Pro_Line_FL Well-Known Member Past Donor

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    That's what its for.

    Yes, it is sold to refineries, or oil companies who can do with it as they wish, and when prices come down, the reserve is replenished. The OP is simply unhappy gas prices are coming down.

    Replenishment is set to begin early this year.

    No, its not for "big emergencies", its simply to mitigate supply disruptions, like the ones we saw after Covid supply crunch.

    Well, it was filled with cheap oil, and then sold when prices were high ( $96 per barrel).
     
    Last edited: Jan 8, 2023
  15. FreshAir

    FreshAir Well-Known Member Past Donor

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    was 30%, they must be refilling it
     
  16. FreshAir

    FreshAir Well-Known Member Past Donor

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    sell high, buy back fresh... low
     
    Last edited: Jan 8, 2023
  17. FreshAir

    FreshAir Well-Known Member Past Donor

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    for all we know, nothing was released, we're just getting the placebo effect
     
  18. FreshAir

    FreshAir Well-Known Member Past Donor

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    Whatever they say is misinformation, keep our enemy's guessing
     
  19. Darthcervantes

    Darthcervantes Well-Known Member Past Donor

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    Reserves aren’t meant to be gambled with. They are for emergencies and not for one man to help fix his rep
    IMO this hurt his rep
     
    Last edited: Jan 8, 2023
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  20. FreshAir

    FreshAir Well-Known Member Past Donor

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    it worked, Biden made the right choice
     
  21. Melb_muser

    Melb_muser Well-Known Member Past Donor

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    It wasn't a gamble. Increase supply and price goes down.

    How is gas doubling in price due to a significant war not an emergency?
     
    Last edited: Jan 8, 2023
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  22. ButterBalls

    ButterBalls Banned

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    I have it on good authority that the upside to this is, by selling off of the old crude will allow us to refill it with fresh crude :) I know it sounds stupid, but the poster was quite convinced of it ¯\_(ツ)_/¯
     
  23. ButterBalls

    ButterBalls Banned

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    I believe congress will have to OK spending tax dollars! But who know anymore ¯\_(ツ)_/¯
     
  24. ButterBalls

    ButterBalls Banned

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    People will believe anything :)

    Here’s When Gas Prices Will Go Down – Forbes Advisor
     
  25. truth and justice

    truth and justice Well-Known Member

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    Last edited: Jan 8, 2023
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