Fire Sale: Strategic Petroleum Reserve

Budget deal congress reached yesterday calls for the sale of 100 million barrels of SPR between 2022 and 2027. Hope the prices are high enough to at least break even!

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Breakeven? I hope we don't need it in bad times. This is meant to be a cushion--a stockpile on which to draw if times get tough. This is a really bad idea. We may need this someday. Stop using reserves to fund big government.

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ha! gotta pay for the military parade somehow :) We're in a supply glut, so I'm sure the reserve will be replenished. 

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I think they're voting on this later today, but it's not anything new. Happens all the time. No big deal during a glut. 

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21 minutes ago, TraderTate said:

I think they're voting on this later today, but it's not anything new. Happens all the time. No big deal during a glut. 

I don't think it happens all the time, and certainly not to this extent. This is what I found on the sales/releases:

  • 2014 March: Test Sale - 5 million barrels
  • 2011 June: IEA Coordinated Release - 30,640,000 barrels  
  • 2005 September: Hurricane Katrina Sale - 11 million barrels
  • 1996-97 October; January; April:  Total non-emergency sales - 28 million barrels
  • 1990/91 September, January: Desert Shield/Storm Sale - 21 million barrels
    (4 million in August 1990 test sale; 17 million in January 1991 Presidentially-ordered drawdown)
  • 1985 - November: Test Sale - 1.0 million barrels 

 And as for how much reserves we have... it's below last year's 12-year low. So glut or no, our reserves are low

 

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