President Trump Orders Department of Energy to Fill SPR with American-Made Oil
President Trump took another bold and decisive move during the Wuhan coronavirus epidemic, where the American energy sector is concerned. The Department of Energy announced that by the order of President Trump, the DOE will fill the Strategic Petroleum Reserve (SPR) to maximum capacity by acquiring 77 million barrels of American-made crude oil.
https://townhall.com/tipsheet/reaganmcca...S9TDAt2Z7g
I'm just wondering if we actually need a strategic petroleum reserve now, since we produce enough domestically to satisfy all our demand. It seems like a relic of the 1970s Arab oil embargo.
It seems like anyone banging the drum for smaller government would be asking, why does the government need to be in the oil business?
(03-20-2020, 05:52 AM)The Real Marty Wrote: [ -> ]I'm just wondering if we actually need a strategic petroleum reserve now, since we produce enough domestically to satisfy all our demand. It seems like a relic of the 1970s Arab oil embargo.
It seems like anyone banging the drum for smaller government would be asking, why does the government need to be in the oil business?
And if domestic production is disabled?
(03-20-2020, 06:05 AM)flsprtsgod Wrote: [ -> ] (03-20-2020, 05:52 AM)The Real Marty Wrote: [ -> ]I'm just wondering if we actually need a strategic petroleum reserve now, since we produce enough domestically to satisfy all our demand. It seems like a relic of the 1970s Arab oil embargo.
It seems like anyone banging the drum for smaller government would be asking, why does the government need to be in the oil business?
And if domestic production is disabled?
How would domestic oil production be disabled?
Do we need a strategic water reserve? A strategic food reserve? A strategic coal reserve?
(03-20-2020, 06:57 AM)The Real Marty Wrote: [ -> ] (03-20-2020, 06:05 AM)flsprtsgod Wrote: [ -> ]And if domestic production is disabled?
How would domestic oil production be disabled?
Do we need a strategic water reserve? A strategic food reserve? A strategic coal reserve?
You're watching it right now with a minor virus, imagine it with a serious one. Or a wide scale chemical or nuclear attack. We need strategic reserves of whatever is neccessary to make war, and oil is still a huge necessity to both civilians and the military.
The Strategic Reserve was more important when a larger portion of our oil came from the Middle East.
It's essentially a limestone cave in Lousiana/Texas that can hold 727 million barrels
(03-20-2020, 07:46 AM)Byron LeftTown Wrote: [ -> ]The Strategic Reserve was more important when a larger portion of our oil came from the Middle East.
It's essentially a limestone cave in Lousiana/Texas that can hold 727 million barrels
And when full that's a 13 day supply at our current consumption rate of 20.5 million barrels a day.
(03-20-2020, 05:52 AM)The Real Marty Wrote: [ -> ]I'm just wondering if we actually need a strategic petroleum reserve now, since we produce enough domestically to satisfy all our demand. It seems like a relic of the 1970s Arab oil embargo.
It seems like anyone banging the drum for smaller government would be asking, why does the government need to be in the oil business?
Look at how much the world has changed in the last 5 days. Now imagine that on top of everything already going on, OPEC decides that they're not happy with the amount of money their oil is raking in and slashes production to artificially raise prices. We've got the SPR to defray that while US oil production ramps up to meet demand. The SPR isn't going to tide the nation through a protracted oil-less depression, but it does provide a cushion if needed.
(03-20-2020, 05:52 AM)The Real Marty Wrote: [ -> ]I'm just wondering if we actually need a strategic petroleum reserve now, since we produce enough domestically to satisfy all our demand. It seems like a relic of the 1970s Arab oil embargo.
It seems like anyone banging the drum for smaller government would be asking, why does the government need to be in the oil business?
Much of the US oil production is based on shale oil which is more expensive to produce than drawing oil from a well. There are multiple American energy companies that produce shale oil that are on the verge of bankruptcy due to the drastic price cuts by foreign oil producers.
This is a way to ensure that American companies get the benefit of the government's spending and to protect the American market if these companies do go under by going ahead and filling our oil reserves.
(03-20-2020, 05:13 PM)Predator Wrote: [ -> ] (03-20-2020, 05:52 AM)The Real Marty Wrote: [ -> ]I'm just wondering if we actually need a strategic petroleum reserve now, since we produce enough domestically to satisfy all our demand. It seems like a relic of the 1970s Arab oil embargo.
It seems like anyone banging the drum for smaller government would be asking, why does the government need to be in the oil business?
Much of the US oil production is based on shale oil which is more expensive to produce than drawing oil from a well. There are multiple American energy companies that produce shale oil that are on the verge of bankruptcy due to the drastic price cuts by foreign oil producers.
This is a way to ensure that American companies get the benefit of the government's spending and to protect the American market if these companies do go under by going ahead and filling our oil reserves.
Exactly. With the price of oil below say $35 or $40 per barrel it isn't profitable for many of the shale companies to operate. It's a double edged sword. On one hand the price that average consumers pay at the pump is down which is good, yet on the other hand oil producers going under means a loss of thousands of jobs.