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uawchild

(2,208 posts)
Tue Oct 27, 2015, 08:48 AM Oct 2015

U.S. budget deal would sell 58 million barrels of oil from emergency reserves

Source: Reuters

Congressional leaders proposed to sell 58 million barrels of oil from U.S. emergency reserves over six years starting in fiscal 2018 to help pay for a budget deal that ends mandatory spending cuts, according to a copy of the bill posted to a congressional website.

The Strategic Petroleum Reserve holds more than 695 million barrels of crude in Texas and Louisiana, a bounty that U.S. lawmakers have eyed a few times this year to pay for a new drug program and highway maintenance.

Economists have said reducing SPR stocks is the right idea at the wrong time, given low crude oil prices.

Read more: http://www.reuters.com/article/2015/10/27/us-usa-fiscal-oil-idUSKCN0SL1FE20151027

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U.S. budget deal would sell 58 million barrels of oil from emergency reserves (Original Post) uawchild Oct 2015 OP
If they want to keep the U.S. oil biz in biz BumRushDaShow Oct 2015 #1
Buy High - Sell Low 6chars Oct 2015 #2
So I get 1/5 of a barrel? No thanks, they can keep it. postulater Oct 2015 #3
Typical incompetence Geronimoe Oct 2015 #4
Hey oil prices are at historic low Jesus Malverde Oct 2015 #5
At $50/barrel that only brings in $2.9 billion, a drop in the bucket compared progree Oct 2015 #6
And the 58 million barrels is about 3 days of U.S. oil consumption - spread over 6 years progree Oct 2015 #11
as so many others posted w0nderer Oct 2015 #7
Buy high, sell low. nt bemildred Oct 2015 #8
Fuck the stupid. GeorgeGist Oct 2015 #9
First this is not a good idea at this time. It is going to push jwirr Oct 2015 #10
Message auto-removed Name removed Oct 2015 #12

BumRushDaShow

(127,308 posts)
1. If they want to keep the U.S. oil biz in biz
Tue Oct 27, 2015, 08:58 AM
Oct 2015

they are going to have to get rid of that excess in there so the current overproduction can replace it when the reserves are sold. And as a FYI, my statement should by no means suggest that we don't keep moving to alternate energy. But it is a reality that we still use fossil fuels and doing this is preferable to massive cutting until we can retake Congress.

6chars

(3,967 posts)
2. Buy High - Sell Low
Tue Oct 27, 2015, 09:01 AM
Oct 2015

They paid over $60/barrel over many years - I think tending to buy when prices are going up. The whole point is to release when prices are even higher to reduce peak prices. And more importantly, to do so when there is an international problem driving the prices ("Strategic&quot . Selling when prices are low is just throwing away taxpayer dollars - that's some way to agree to a budget deal.

Jesus Malverde

(10,274 posts)
5. Hey oil prices are at historic low
Tue Oct 27, 2015, 10:01 AM
Oct 2015

This makes so much sense. Buy it at at the high sell it at the low.

And fuck the disabled....for the budget.

progree

(10,864 posts)
6. At $50/barrel that only brings in $2.9 billion, a drop in the bucket compared
Tue Oct 27, 2015, 10:01 AM
Oct 2015

to the other amounts involved in the budget deal. And it is spread out over 6 years, averaging $483 million/year.

progree

(10,864 posts)
11. And the 58 million barrels is about 3 days of U.S. oil consumption - spread over 6 years
Tue Oct 27, 2015, 04:17 PM
Oct 2015

The 58 million barrels over 6 years is 0.13% of U.S. oil consumption if U.S. oil consumption remains flat at 20 million barrels/day.

So its impact on prices will be trivial.

It's a shame to squander it. Using it like when it ought to be used -- when prices are way high -- and using it over a short period like a few months -- would help to lower prices significantly when that is most needed.

w0nderer

(1,937 posts)
7. as so many others posted
Tue Oct 27, 2015, 10:18 AM
Oct 2015

1 selling when oil is low priced???
2 emergency reserve ....umm shouldn't that be 'reserved' for an 'emergency'?

jwirr

(39,215 posts)
10. First this is not a good idea at this time. It is going to push
Tue Oct 27, 2015, 12:17 PM
Oct 2015

oil prices down even further.

As the the SSDI cut - triangulated under the bus again.

Response to uawchild (Original post)

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