The Briefing Room
General Category => Science, Technology and Knowledge => Energy => Topic started by: thackney on February 12, 2018, 02:12:22 pm
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Strategic oil reserve would fall by half under budget deal
https://www.chron.com/business/energy/article/Strategic-oil-reserve-would-fall-by-half-under-12564630.php (https://www.chron.com/business/energy/article/Strategic-oil-reserve-would-fall-by-half-under-12564630.php)
February 9, 2018
The U.S. is poised to sell half of its emergency oil reserves to help pay its bills, something critics say defies the reason the stockpile was created decades ago as a hedge against supply disruptions.
The spending deal that passed both houses of Congress and was sent to the White House early Friday calls for selling 100 million barrels of oil from the Strategic Petroleum Reserve by 2027. Combined with other sales approved last year, that would mean the volume of oil in the reserve would fall by 45 percent, to about 303 million barrels. The White House said President Donald Trump will sign the bill Friday morning.
"This is the biggest non-emergency sale in American history," said Kevin Book, managing director of ClearView Energy Partners in Washington. "This is nothing short of liquidation of a safety net."
At today's oil price of about $60 a barrel, a sale of 100 million barrels would raise $6 billion. But it's impossible to determine exactly how much money the government would raise with the proposed sales because oil prices fluctuate wildly and the budget plan calls for the sales to take place between now and the fiscal year that ends Sept. 30, 2027.
The stockpile is kept inside a network of underground caverns and storage tanks along the U.S. Gulf Coast and has a capacity of 700 million barrels, making it the world's largest supply of emergency crude oil....
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This is symptomatic of the problems we have in DC.
Selling off our future to spend more now.
The GOP was not put into power to act like this.
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Instead cut the number of fedgov employees, in departments that dream up/propose dumb sh!te like this
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Yeah, sell when the prices are low. WTG!
Don't try to pin this on Congress. Decisions to withdraw crude oil from the SPR are made by the President under the authorities of the Energy Policy and Conservation Act (EPCA). (https://energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reserve)
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Yeah, sell when the prices are low. WTG!
Don't try to pin this on Congress. Decisions to withdraw crude oil from the SPR are made by the President under the authorities of the Energy Policy and Conservation Act (EPCA). (https://energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reserve)
Is Congress able to change the size of the reserve? They have enlarged it in the past. Can they not choose to make it smaller?
https://www.hellenicshippingnews.com/us-approves-largest-ever-crude-sale-from-spr/ (https://www.hellenicshippingnews.com/us-approves-largest-ever-crude-sale-from-spr/)
The US Strategic Petroleum Reserve (SPR) is set to fall to almost half its capacity by 2027 as part of a bipartisan two-year budget agreement that would sell 100mn bl of crude from the reserve....
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Yeah, sell when the prices are low. WTG!
Don't try to pin this on Congress. Decisions to withdraw crude oil from the SPR are made by the President under the authorities of the Energy Policy and Conservation Act (EPCA). (https://energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reserve)
Don't pin on Congress? Who put this into the law?
Congress did, when it passed the law.
What are you trying to say anyhow? That the article is incorrect and Congress did not put this into this budget deal?
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Yeah, sell when the prices are low. WTG!
Don't try to pin this on Congress. Decisions to withdraw crude oil from the SPR are made by the President under the authorities of the Energy Policy and Conservation Act (EPCA). (https://energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reserve)
Past drawdowns approved by Congress have included 25 million barrels to pay for a medical research bill in 2015 and 66 million barrels to pay for transportation legislation in 2016. A draw down of 7 million barrels, worth an estimated $600 million, helped pay for a package of tax cuts passed by Congress in December.
https://www.rigzone.com/news/wire/us_oil_reserve_would_fall_nearly_in_half_under_budget_deal-08-feb-2018-153467-article/#hasComments (https://www.rigzone.com/news/wire/us_oil_reserve_would_fall_nearly_in_half_under_budget_deal-08-feb-2018-153467-article/#hasComments)