THE US Strategic Petroleum Reserve (SPR) Thread (merged)

[dinopello]

Assuming the US produces 6 million barrels per day and consumes 21, that leaves 15 million barrels a day.

The SPR can hold 727 million barrels so if we drained it at 15 million barrels a day, we could be independent of foreign oil for 48 and a half days !

Could I get elected on that platform ?

I doubt it is physically possible to get oil out of the SPR at that rate though. Anybody know ?

[Twilight]

I doubt it is physically possible to get oil out of the SPR at that rate though. Anybody know ?

4.4mb/d.

Source

[Fishman]

And Joe, assuming you still read books, might I suggest
Liberal Fascism: The Secret History of the American Left, From Mussolini to the Politics of Meaning
I thought the issues of the Polish history was quite appropriate, don't recall the Nazis even trying to have elections or even debating the issue. I don't recall the Nazis arresting and procecuting any of their own who commited crimes. Joe do you read ANY history? The US has always pulling in the reigns of freedom during war, Lincoln did far more "sweeping" changes than happened in the last 20 years, the same during world war one. Boo hoo, even the Obamessiah is backtracking as fast as he can on these issues.

[joewp]

What makes you think I'm "left"? I've found out that both right and left are just two sides of the same coin owned and controlled by the banks. I'll tell you this, apart from some small, token gestures, nothing will change in the US no matter who is elected in November. What happens is dictated by the banks and their corporate clients, not the people. As long as you seem to think there's a difference between McBama and O'Cain, you won't see what's really happening.

And I still would rather they drain the SPR than use it to control the populace in the future.

[SILENTTODD]

Emperor! er.... Vice President Cheney!

[RSFB]

link

CHICAGO (AP) — In a reversal, Barack Obama is proposing tapping the nation's strategic oil reserves to help drive down gasoline prices, his campaign said Monday.

Obama supports releasing light oil from the emergency oil stockpile now and replacing it later with heavier crude more suited to the country's long-term needs, according to a campaign fact sheet. Light crude oil is easier to refine into gasoline than heavier oil.

Also on Monday, the Obama campaign unveiled a television ad that criticizes Republican John McCain's energy policies. "After one president in the pocket of big oil we can't afford another," says the ad, referring to President Bush's previous work in the oil industry.

Obama is emphasizing energy and the economy in campaign stops this week in Michigan, Ohio and Indiana, beginning with a speech Monday in Lansing, Mich. Gas prices over $4 a gallon have become a top issue in the presidential contest.

In the past, Obama has not advocated tapping the oil reserve, but campaign spokeswoman Heather Zichal said he has reconsidered. "He recognizes that Americans are suffering," she said.

The nation's strategic petroleum reserve contains 707.2 million barrels in salt caverns in Texas and Louisiana. It was last tapped shortly after Hurricane Katrina. Otherwise, President Bush has refused to use the reserves, saying they need to be left intact as an emergency stockpile. However, in the face of strong congressional pressure, Bush in June stopped filling the reserve until oil prices decline.

Obama's call for using the government reserve mirrors a proposal that has been pushed by congressional Democrats, but opposed by Republican leaders and the White House. House Speaker Nancy Pelosi, D-Calif., for weeks has called for Bush to withdraw a "small amount" of oil from the government reserve to add to supplies and try to force down prices.

Sen. Jeff Bingaman, D-N.M., chairman of the Senate Energy and Natural Resources Committee, has tried to get agreement on legislation that would require the release of 70 million barrels of oil from the government stockpile over six months with the oil to be returned at a later date.

The Strategic Petroleum Reserve is capable of releasing about 4 million barrels a day. It's unclear what impact such release might have on global oil prices, or costs of gasoline at the pump. But a clear signal by the United States to use its emergency reserve to a significant extent could put downward pressure on oil markets at least for a time, energy experts say.

In 2000, President Clinton used a similar "swap" of government oil as proposed by Obama, making available 30 million barrels because of concern over rising prices and supply worries in advance of that year's winter heating season. The move at the time was criticized by Republicans as an attempt to help then Vice President Al Gore's presidential bid.

The new Obama ad trumpets his proposal to revive a windfall profits tax on energy companies and asserts that McCain favors tax breaks for the oil industry. "A windfall profits tax on big oil to give families a thousand-dollar rebate," an announcer in the ad says.

Obama has pushed for such a tax to fund $1,000 emergency rebate checks for consumers besieged by high energy costs. Congress enacted a windfall profits tax in 1980, during an earlier era of high oil prices, but repealed it in 1988 amid concerns the tax was discouraging domestic oil development. Last year, the House approved $18 billion in new taxes on the largest oil companies, but they were blocked by Republicans in the Senate.

The new ad opens with a driver pumping gas. The announcer says, "Every time you fill your tank, the oil companies fill their pockets." Republicans were quick to pounce.

"Barack Obama's latest attack ads shows his celebrity is matched only by his hypocrisy," said McCain spokesman Tucker Bounds. "After all it was Senator Obama, not John McCain, who voted for the Bush-Cheney energy bill that was a sweetheart deal for oil companies. Also not mentioned is the $400,000 from big oil contributors that Barack Obama has already pocketed in this election."

Obama said Friday that he would reluctantly consider accepting some new offshore oil drilling. Obama previously opposed any offshore drilling. He praised a plan unveiled by a group of Republican and Democratic senators to permit limited drilling off Southern states while supporting an effort to convert most vehicles to alternative fuels in 20 years.

McCain's campaign accused the Democrat of flip-flopping. However, the Arizona Democrat only recently reversed his own former opposition to drilling on the Outer Continental Shelf.

Both candidates have energy proposals to reduce U.S. dependence on oil. Obama's was first, and its centerpiece is a 10-year, $150 billion spending plan focusing on clean coal technology, further development of plug-in hybrid cars, commercialization of wind and solar power and other measures.

McCain's, which is called the Lexington Project, includes building 45 new nuclear power plants; offering a $300 million prize for major advancement of low-cost, plug-in hybrid or electric car technology; and "encouraging the market" in wind, hydroelectric and solar power. Both he and Obama would cut use of fossil fuels to combat climate change.

[Cashmere]

Showing conclusively that the man is just another whore in nuns' clothing.

[Cynus]

He voted to allow amnesty for telecoms searching without warrants.
He's now voted to allow offshore drilling.
He's for tapping the SPR.
He's in favor of globalized free trade, not localization.
He's in favor of centralized power, not localization.
He's an military interventionist.

I don't know why the Left supports this guy. I guess Bush has driven liberals certifiably insane that they will support someone who's against everything they say they believe. Not only support him but have spasms of ecstasy over his candidacy.

[ROCKMAN]

As much as I've always opposed tapping the SPR the replacement scenario may have some validity. Not a lot...but some. So far refiners don't buy SPR oil but take it with the guarantee to replace it in kind at a later date. With the ever decreasing flow of Mexican Sweet it would be foolish to have refiners replace the release with such sweet crude as its cost will surely rise and the replacement purchases would only drive the prices higher. But it could make sense to structure the deal so that a refiner, such as Valero, would be required to build/convert some portion of their capacity to handle heavy/sour crude. One big obstacle for refiners to build such plants now is the uncertainty of future heavy stock supplies. Locking in availability from the SP could reduce the risk enough. But I doubt they've thought this far ahead or would try to make any trade this elaborate. But, IMO, we haven't seen prices increases high enough to justify a release. Not when the main problem is folks whining about their gasoline bill but when prices really hurting the economy and jobs to a serious level.

I also have little faith in any promises being kept by either side once the election is over.

[dinopello]

I think you all should vote. At least vote in your local elections.

Politics can make you sick, but it is what it is. Obama is in danger of losing one of his groups if he doesn't show some concrete, easy to understand, plan to 'bring relief to those at the pump" I hate that the term is part of the lexicon, but there it is. At the pump. Makes me ill.

Anyway, groups like

http://www.stopwaronpoor.org/

are looking to fish off Obama's pier so I think he is scrambling and gambling that his "elitist" constituancy that wants to save the SPR and the water fowl will hang with him, because the poor will often switch sides to the one that gives them money, or cheap gas. Of course the money they get will be worthless and the cheap gas will never materialize but they don't know that.

[ROCKMAN]

All this negativity AND a baby hurrican heading at me. I wish I could tell you how wrong your attitudes are. Not that you are...just wish I could think you were. And my back hurts too.

A friend who works at WalMart called at lunch and told me security had to be called in 4 times because of folks fighting over "hurricane survival" purchases. OH YEAH...we're ready to deal with PO rationally.

[RSFB]

All this negativity AND a baby hurrican heading at me. I wish I could tell you how wrong your attitudes are. Not that you are...just wish I could think you were. And my back hurts too.

A friend who works at WalMart called at lunch and told me security had to be called in 4 times because of folks fighting over "hurricane survival" purchases. OH YEAH...we're ready to deal with PO rationally.

You should be happy that they aren't draining the SPR before your hurricane.

[Twilight]

A friend who works at WalMart called at lunch and told me security had to be called in 4 times because of folks fighting over "hurricane survival" purchases. OH YEAH...we're ready to deal with PO rationally.

You know, it amazes me that people living in a hurricane zone have to prepare for each one. Prepare for each season...maybe. Prepare for each one, come on. Even the boards can be stored for reuse. Civil defence died with the cold war, well and truly.

[dinopello]

Now, if we could take the wrapping, and wrap it around a libertarian package- that would be a nice candidate.

The Libertarian Party has picked their candidate...

And he will be on the ballot, if you are so inclined.

And, they already have a veep choice...

Since they have no chance of winning they are free to state what they believe. Their stated energy policy is as good or better than the D or R.

Energy Policy
Government intervention, whether through more regulations or more subsidies (or both), hurts consumers in the end. The free market, driven by consumer choice and reflecting the real cost of resources, should be the foundation of America’s energy policy. The federal government should eliminate restrictions that inhibit energy production, as well as all special privileges for the production of politically-favored fuels, such as ethanol.

I don't necessarily agree with eliminating all restrictions. Federal lands are held in the public trust and restrictions should be placed on them and other activities if it promotes the general welfare to do so. That is a political decision.

[heroineworshipper]

CNN is running wall to wall coverage on Ubama's campaign changes. First his Iraq plan reverses, then his NASA plan reverses, then his energy plan reverses. Now if only he'd back down on those stupid entitlements for homeowers. It's "Change in Ubama you can count on."

[EnergyUnlimited]

Well, yes, that is what US president candidate is suggesting.

1. Open SPR and release 70mb to lower short term prices.
2. Drill more.

http://news.bbc.co.uk/2/hi/americas/7541291.stm

I think, we are approaching end game in US economy (haphazard bailouts, release strategic stocks, drill more to get last drops left etc.

I think, oil above $100 is actually making a trick and large parts of economic activities are going to be shut down pretty soon.

[benzoil]

How the World Works has an excellent review of the full proposal by Obama, including a link to the full text of the speech.

I think tapping the SPR is a strategy to counter McCain's offshore drilling gambit. The full proposal is heavy on renewables. How we'll pay for it is anyone's guess, but that applies to any suggestion from either candidate at this point.

[Don35]

Having voted in every election since the sixties, I'll probably join you in abstaining this year.

I've thought the same thing. For all the gnashing of teeth everyone does about politics and PO, nobody seems to say, "it really doesn't matter who is elected. We're screwed!" Whomever wins the office will be the fall guy because there is really nothing they can do to stop this and everyone will blame them anyway. Remember the term sheeple! And besides my happiness is not dependent on the government or anything external. My happiness must come from inside. (OK, I got a bit deep there)

Good luck in your preps!

[GoghGoner]

I am thinking September 2008 due to a gom hurricane.

EDIT: If a hurricane doesn't damage oil production in the gom then I vote for Jan-July 2009 because Obama has mentioned taking the light crude and replacing it with heavy crude (I think that counts as a tap).

[joeltrout]

I hope they don't tap the SPR until they actually have to. After taking measures such as no driving allowed on Saturday, nation-wide speed limit of 55 mph no exceptions, & only allowing drivers to fill up on certain days.

I think we should stop all our excess fuel use before tapping our reserves. Either voluntarily or by force.

joeltrout