U.S. offers up to 6 million barrels of oil from emergency reserve

[thackney]

U.S. offers up to 6 million barrels of oil from emergency reserve
https://finance.yahoo.com/news/u-offers-6-million-barrels-181810632.html
February 28, 2019

The U.S. Energy Department said on Thursday it is offering up to six million barrels of sweet crude oil from the national emergency reserve in a sale mandated by a previous law to raise funds to modernize the facility.

A law U.S. President Donald Trump signed last year requires the department to hold sales to fund $300 million improvements including work on shipping terminals to the Strategic Petroleum Reserve, or SPR, which is held in caverns on the coast of Texas and Louisiana. Previous laws have also mandated sales from the reserve, which currently holds more than 649 million barrels.

While global oil prices have been rising as the production group OPEC and Russia work together to cut supplies, the sale did not appear to be an explicit signal that the United States is looking to balance the current market with the SPR. U.S. Energy Secretary Rick Perry, who has said price impacts from tapping the reserve for supply balance are often temporary, did not mention the sale in a press conference earlier on Thursday....

[thackney]

DOE issues notice of upcoming sale of crude from the SPR
https://www.ogj.com/articles/2019/02/doe-issues-notice-of-upcoming-sale-of-crude-from-the-spr.html

...The auctions are mandated to fund modernization of the reserve from fiscal 2017 through 2020 under Section 404 of the 2015 Bipartisan Budget Act, it noted.

The amounts to be offered are as much as 3 million bbl from the Bryan Mound storage site in Texas, 1.5 million bbl from the Big Hill site in Texas, and 1.5 million bbl from the West Hackberry site in Louisiana, DOE’s Fossil Energy Office said.

Proceeds will be deposited in DOE’s Energy Security and Infrastructure Modernization Fund during fiscal 2019, which ends on Sept. 30....

[IsailedawayfromFR]

Using this as a model, we should be selling off federal land to fund projects for National Parks or other federal revitalization projects.

The capacity exists to self fund through asset sales of the vast federal holdings.

Makes as much sense in selling of our strategic reserves of oil.