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
BumRushDaShow
(127,308 posts)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)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" . Selling when prices are low is just throwing away taxpayer dollars - that's some way to agree to a budget deal.
postulater
(5,075 posts)Geronimoe
(1,539 posts)Sell when prices are tanking.
Jesus Malverde
(10,274 posts)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)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)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)1 selling when oil is low priced???
2 emergency reserve ....umm shouldn't that be 'reserved' for an 'emergency'?
bemildred
(90,061 posts)GeorgeGist
(25,294 posts)jwirr
(39,215 posts)oil prices down even further.
As the the SSDI cut - triangulated under the bus again.
Response to uawchild (Original post)
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