So dumping the reserve only has a relatively small effect on prices, since if you try to push down US gas prices below the global average, arbitrage experts will simply start diverting US oil to other countries to profit from the price differential.
The purpose of the reserve was to protect America in times of national energy crisis brought on by geopolitical shocks to oil availability like that which led to rationing in the 1970s. We are nowhere near there. We just have some elevated prices for a relatively brief period with no threat to the greater economy.
Instead, the only real threat here is to the Democrats, who see gas prices as a proxy for inflation (unfortunately, too many Americans follow this logic even though inflation is still horrific in MANY other areas) and who are desperate to cover up the perception of inflation with a temporary band aid which doesn't even make much difference just to boost their polling for the election. Pathetic and anti-American.
What did stop everyone from making MASSIVE additional reserves when the crude was worth literally nothing 2 years ago? Is the storage cost prohibitedly high even with scaling up?
Search your feelings. You know the answer to your question.
Efforts were made to add 77 million barrels to the reserve, but the watermelons (green on the outside, red on the inside) response to those efforts was predictable
The storage is in large natural underground caverns which have unique properties such that the oil does not leak. I believe it can be scaled up to a degree but it couldn't be done on short notice. Plus the system is set up to slowly add over time instead of trying to "time the market"
but yes, the US should have stepped in and bought an enormous quantity during the COVID crash and then just used temporary storage facilities until it could build out some more expansion.
boy oh boy.. after october/november... we gonna be in a rude awakening. they will especially push EV more with our crippled energy production and inadequate power grid.
it will take decades to get our electrical grids up to date. itll be over budget, delayed/late as heck, filled with red tape, lots of environmental BS, and plenty of corruption.
I’ve always been under the impression that’s meant for a military or logistical emergency. Not oh shit my bad policies have hurt the voters in the wallet and they know it.
yes it is intended to protect the US from an oil shock like what happened in the 1970s and give us some time to react and take whatever measures necessary to obtain alternative supply or conquer it by force.
It's not Biden, it's Biden's fresh-outta-college team, all impatiently eager to take the reins of society and change® it for the better. So what if they need to do some quick fixes to get reelected? It's all insignificant in their grand scheme of things!
Joe Biden is dramatically emptying the US Strategic Petroleum Reserve in a desperate bid to push down gas prices to improve the Democrat's electoral chances this November, putting all of America at risk
Joe Biden is dramatically emptying the US Strategic Petroleum Reserve in a desperate bid to empty the petroleum reserves to improve the Democrat's chance of realizing their delusional and dystopic dreams of a "green" future, putting all of America at risk
Oil is fungible and a global market. News headlines have already stated that prior US strategic reserve releases were shipped to China. The oil released from the SPR is sold to ANYONE who bids, including to foreign countries. It doesn't even affect US gas prices, it affects global prices, which in turn affect US prices by a tiny amount.
So dumping the reserve only has a relatively small effect on prices, since if you try to push down US gas prices below the global average, arbitrage experts will simply start diverting US oil to other countries to profit from the price differential.
The purpose of the reserve was to protect America in times of national energy crisis brought on by geopolitical shocks to oil availability like that which led to rationing in the 1970s. We are nowhere near there. We just have some elevated prices for a relatively brief period with no threat to the greater economy.
Instead, the only real threat here is to the Democrats, who see gas prices as a proxy for inflation (unfortunately, too many Americans follow this logic even though inflation is still horrific in MANY other areas) and who are desperate to cover up the perception of inflation with a temporary band aid which doesn't even make much difference just to boost their polling for the election. Pathetic and anti-American.
I wonder if Biden can drain it by November
What did stop everyone from making MASSIVE additional reserves when the crude was worth literally nothing 2 years ago? Is the storage cost prohibitedly high even with scaling up?
Search your feelings. You know the answer to your question.
Efforts were made to add 77 million barrels to the reserve, but the watermelons (green on the outside, red on the inside) response to those efforts was predictable
The storage is in large natural underground caverns which have unique properties such that the oil does not leak. I believe it can be scaled up to a degree but it couldn't be done on short notice. Plus the system is set up to slowly add over time instead of trying to "time the market"
but yes, the US should have stepped in and bought an enormous quantity during the COVID crash and then just used temporary storage facilities until it could build out some more expansion.
Yeah I'm planning to to buy stock to pay for my gas
Why does the most popular president ever need to buy votes?
boy oh boy.. after october/november... we gonna be in a rude awakening. they will especially push EV more with our crippled energy production and inadequate power grid.
it will take decades to get our electrical grids up to date. itll be over budget, delayed/late as heck, filled with red tape, lots of environmental BS, and plenty of corruption.
I’ve always been under the impression that’s meant for a military or logistical emergency. Not oh shit my bad policies have hurt the voters in the wallet and they know it.
yes it is intended to protect the US from an oil shock like what happened in the 1970s and give us some time to react and take whatever measures necessary to obtain alternative supply or conquer it by force.
You know, strategic. When you strategically weaken the US, or strategically buy votes.
It's not Biden, it's Biden's fresh-outta-college team, all impatiently eager to take the reins of society and change® it for the better. So what if they need to do some quick fixes to get reelected? It's all insignificant in their grand scheme of things!
Biden has always been a figurehead who reads the lines handed to him.
Joe Biden is dramatically emptying the US Strategic Petroleum Reserve in a desperate bid to empty the petroleum reserves to improve the Democrat's chance of realizing their delusional and dystopic dreams of a "green" future, putting all of America at risk
All according to keikaku.
Oh no I was definitely worried about dropping gas prices. More so now