Obama authorizes the release of 30 million barrels from Strategic Reserve

[wmenorr67]

Said he wants to cut gas prices and stabilize the economy.  Trying to buy early votes is more like it.  Most Dems and Reps are saying it isn't the right thing to do.

[longeyes]

He should try unlocking "the strategic reserves" we haven't drilled yet.

Who the hell is he kidding?

[lupinus]

Wait...I thought supply was fine?

[griz]

Gas prices have dropped about 40 cents recently, you would think that would make the ploy transparent enough that anybody could see through it.

[makattak]

Wait...I thought supply was fine?

It is.

[Waitone]

An example of Obama trying to avoid the appearance of being completely out of touch.  So he sees that prices will continue to drop.  He would not want prices to decline with him doing nothing but playing gold.  So he releases oil from the strategic reserve (a truly meaningless action).  Now Obama has all the PR coverage he needs.

If he is really interested in lowering prices, and he isn't, he would issue the equivalent of a "Hey, Diddle Diddle.  Let's drill in the middle (of everywhere)."  Current prices would drop in anticipation of future supplies coming on line.  Happened before and will happen again just as soon as he acts decisively.

[Gowen]

But look at the bright side, when had to resupply the reserve it will be a current market value which will push up the national debt even further....  Wait a minute, I guess that isn't a bright side.

[MechAg94]

Said he wants to cut gas prices and stabilize the economy.  Trying to buy early votes is more like it.  Most Dems and Reps are saying it isn't the right thing to do.

Buying votes is right.  Someone needs to pay attention to who gets the resale rights to this stuff. 

[wmenorr67]

It is part of the 60 million that is being released from reserves around the world to off-set what is being lost from Libya being shut down.   

[RocketMan]

It is part of the 60 million that is being released from reserves around the world to off-set what is being lost from Libya being shut down.   

Yep, the Libyan shortfall that has already been made up by various OPEC countries increasing their production.

[longeyes]

Strategic reserves are for emergency needs, not sops to consumers and not political wampum.

[wuluf]

i thought he didn't believe that increasing supply would lower the price? Isn't that what he says when we want to "Drill baby, Drill"?

[lupinus]

i thought he didn't believe that increasing supply would lower the price? Isn't that what he says when we want to "Drill baby, Drill"?

Yeah, but prices were already falling so he can still maintain this position later

[longeyes]

And is it half of the total we are supplying?  What happened to international pulling-together?  All I see is Obama hollowing out America to the benefit of everyone else.

[zahc]

So that I can have perspective, does anyone know the daily/weekly US demand?

I'm frankly surprised that gasoline is in a dip, considering summer travel.

[Azrael256]

So that I can have perspective, does anyone know the daily/weekly US demand?

It depends on your source, but this is somewhere between one and three days of oil.  I think the general consensus estimate is right under 20M/day.

[kgbsquirrel]

I think the general consensus estimate is right under 20M/day.

Just for pedantic clarification, that is 20 million barrels per day.

[Waitone]

The entire strategic reserve will supply 100% of US demand for about 2, maybe 3 days.

[dogmush]

The entire strategic reserve will supply 100% of US demand for about 2, maybe 3 days.

34 days unless wiki is lying.

http://en.wikipedia.org/wiki/Strategic_Petroleum_Reserve_(United_States)

[kgbsquirrel]

The SPR has enough crude petroleum to fuel the entire United States for approximately 35 days at a consumption rate of 20 million barrels per day as it contains approximately 700 million barrels. However the SPR only has enough pipeline capacity to draw 4.45 million barrels per day, so in reality it can supply approximately 22.25% of the total U.S. usage per day over a period of 157 days (5 months). This is really neither here nor there however as the SPR's purpose is to fuel the U.S. military and government in the event of fuel disruption, presumably during which the government will be busy fixing whatever mess caused the disruption.



Edited for spelling and missing words cause I think faster than my typing can keep up.

[birdman]

The SPR has enough crude petroleum to fuel the entire United States for approximately 35 days at a consumption rate of 20 million barrels per day as it contains approximately 700 million barrels. However the SPR only has enough pipeline capacity to draw 4.45 million barrels per day, so in reality it can supply approximately 22.25% of the total U.S. usage per day over a period of 157 days (5 months). This is really neither here nor there however as the SPR's purpose is to fuel the U.S. military and government in the event of fuel disruption, presumably during which the government will be busy fixing whatever mess caused the disruption.



Edited for spelling and missing words cause I think faster than my typing can keep up.

Also, since we do import a substantial amount from Canada, Mexico, and have substantial domestic production, the goal for the SPR is to supply in the case of overseas shipped imports (not pipeline or local shipping), hence the pipeline limit.  With domestic and nafta supply and the SPR, in the case of a true emergency, the SPR could maintain a good (60-75% normal) supply for the few months needed.

[Waitone]

I stand corrected.