After killing Trump's plan, Dems to spend 5 times as much restocking oil reserve

[Elderberry]

WND 7/29/2022

Meanwhile Biden begging overseas dictators to ramp up production

America's petroleum policy under Joe Biden has been one of simple chaos.

While under President Donald Trump, the nation had become energy self-sufficient and actually was exporting, when Biden moved into the White House he immediately canceled pipeline projects, drilling projects, oil lease sales and more.

Now, a report confirms that Biden is planning to spend $90 a barrel on oil to replenish the Strategic Petroleum Reserve even though Democrats in Congress halted President Trump's plan to do that when the price was less than $19 a barrel.

The SPR is being depleted because Biden has been releasing millions of barrels, for his stated plan to help with American gasoline prices.

However, millions of barrels released by Biden already have been sold to China – and other nations around the world, further delaying help that the American consumers need.

More: https://www.wnd.com/2022/07/biden-plans-spend-fortune-restocking-petroleum-reserve/

[IsailedawayfromFR]

To sell oil to China from our SPR is treason.

[Wingnut]

So, if we are restocking the depleted SPR doesn't that reduce the number of barrels available to put in the free
market?  Thus driving up the price at the pump? 

[Kamaji]

So, if we are restocking the depleted SPR doesn't that reduce the number of barrels available to put in the free
market?  Thus driving up the price at the pump? 

yup

[Smokin Joe]

So, if we are restocking the depleted SPR doesn't that reduce the number of barrels available to put in the free
market?  Thus driving up the price at the pump?

All part of the plan. The purchases likely won't happen until after the mid-terms.

[Cyber Liberty]

So, if we are restocking the depleted SPR doesn't that reduce the number of barrels available to put in the free
market?  Thus driving up the price at the pump?

Yes, and in addition they're shoveling a ton of cash to the "rich oil companies" they claim are gouging us.  Smells like a payoff to somebody.

[IsailedawayfromFR]

Yes, and in addition they're shoveling a ton of cash to the "rich oil companies" they claim are gouging us.  Smells like a payoff to somebody.

This might answer your hypothesis.

U.S. to sell additional 20 million barrels of oil from strategic reserve  July 26, 2022
The department will soon propose a rule to help put oil back into the SPR, where levels have sunk to 475.5 million barrels, the lowest since June 1985, by allowing it to enter forward contracts to purchase oil in future years at fixed, preset prices.

"What it means in practice is that producers would have more certainty about future demand for their product, and that would encourage investment in production today," a senior U.S. official told reporters.
https://www.reuters.com/business/energy/us-sell-additional-20-million-barrels-oil-strategic-reserve-2022-07-26/

Doesn't look like a payoff as much as a plan to have less wildly-varying prices.

As an oil and gas guy, I know that, with more certainty on pricing of crude sales, oil companies can actually make more sound investments than guessing what the price will be when those investments begin producing.

Seems a win/win.  The question is whether there are enough purchases to make any impact at all on price fluctuations outside these agreements.  I doubt it.

[PeteS in CA]

The SPR’s primary purpose is has a buffer for the military against oil supply disruptions. So for LIEden, depleting it is “good” because it bleeps over the military. And if the replenishment will be paid for from the Defense budget, that too is “good”, for the same reason.

[Cyber Liberty]

This might answer your hypothesis.

U.S. to sell additional 20 million barrels of oil from strategic reserve  July 26, 2022
The department will soon propose a rule to help put oil back into the SPR, where levels have sunk to 475.5 million barrels, the lowest since June 1985, by allowing it to enter forward contracts to purchase oil in future years at fixed, preset prices.

"What it means in practice is that producers would have more certainty about future demand for their product, and that would encourage investment in production today," a senior U.S. official told reporters.
https://www.reuters.com/business/energy/us-sell-additional-20-million-barrels-oil-strategic-reserve-2022-07-26/

Doesn't look like a payoff as much as a plan to have less wildly-varying prices.

As an oil and gas guy, I know that, with more certainty on pricing of crude sales, oil companies can actually make more sound investments than guessing what the price will be when those investments begin producing.

Seems a win/win.  The question is whether there are enough purchases to make any impact at all on price fluctuations outside these agreements.  I doubt it.

 

Thanks!  Didn't know that....

[IsailedawayfromFR]

The SPR’s primary purpose is has a buffer for the military against oil supply disruptions. So for LIEden, depleting it is “good” because it bleeps over the military. And if the replenishment will be paid for from the Defense budget, that too is “good”, for the same reason.

Joe is going wayyyyy past dissing the US military as he sells off our SPR to supply the military of our enemy China, where he makes his money.

His next move may be supplying enriched uranium to the mullahs in Iran?