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THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

General discussions of the systemic, societal and civilisational effects of depletion.

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

Unread postby babystrangeloop » Mon 22 Aug 2011, 08:04:02

DOE: 1.77 Million Barrels Of SPR Oil-Sale Crude Shipped As Of Thursday
By David Bird / DOW JONES NEWSWIRES / July 22, 2011


NEW YORK -(Dow Jones)- A total of 1.77 million barrels of crude oil sold under the U.S. emergency sale has been shipped from the Strategic Petroleum Reserve as of Thursday, the Energy Department said.

Valero Energy Corp. (VLO) received 750,000 barrels, while Plains All American Pipeline LP's (PAA) Plains Marketing LP got 520,000 barrels and Shell Trading (US) Co., a unit of Royal Dutch Shell PLC (RDSA, RDSA.LN), received 500,000 barrels.

Deliveries scheduled for the week of July 17-23 total 4.52 million barrels, the data show, with 8.74 million barrels set for delivery in July. The remaining 21.9 million barrels will be shipped in August. ...
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Re: THE US Strategic Petroleum Reserve (SPR) Thread (merged)

Unread postby babystrangeloop » Thu 25 Aug 2011, 07:12:19

US Weekly: SPR Release Accelerates
Simpson Spence Young News Events International Ship Brokers - SSY / August 17, 2011


According to the latest weekly data from the EIA, deliveries from the Strategic Petroleum Reserve (SPR) accelerated last week, with 5.9 MB being delivered to refiners. Meanwhile, commercial crude inventories saw a 4.2 MB build, climbing to 354.0 MB. Crude imports rose by 185 kb/d, to 9.29 mb/d, whilst crude inputs at US refineries declined by 205 kb/d, to 15.42 mb/d. Overall refinery utilisation stood at 89.1% of total capacity, down from 90.0% a week earlier. Mogas inventories were 3.5 MB lower, at 210.1 MB, whilst imports were up slightly, rising by 44 kb/d, to 677 kb/d. Distillate stocks saw a 2.4 MB build, to 154.0 MB, with imports stable at 97 kb/d, just 2 kb/d lower than the preceding week.


Not surprisingly the price of OPEC oil fell as the SPR release accelerated.

The following chart shows the OPEC Reference Basket (ORB) price of oil as the SPR release is first announced then starts actively releasing oil which defers actual OPEC purchases by replacing them with ones from the SPR and as the SPR release accelerates.

Image
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Re: THE US Strategic Petroleum Reserve (SPR) Thread (merged)

Unread postby babystrangeloop » Thu 01 Sep 2011, 21:23:54

Bye-Bye SPR Release, It's Been Real
Image

Now what are we going to do, now that the real price of oil is back?

Sure not going to have another SPR release. Maybe another round of QE?
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Re: THE US Strategic Petroleum Reserve (SPR) Thread (merged)

Unread postby bratticus » Mon 20 Feb 2012, 07:35:46

On February 13, Senators David Vitter (R-LA), John Hoevan (R-ND), and Richard Lugar (R-IN) introduced the Strategic Petroleum Supplies Act, S. 2100 that would prevent President Obama from selling oil from the Strategic Petroleum Reserve unless Keystone is approved:
“the Administration shall not authorize a sale of petroleum products from the Strategic Petroleum Reserve… until the date on which all permits necessary … for the Keystone XL pipeline project application filed on September 19, 2008 (including amendments) have been issued.”

In other words, unless the president approves Keystone, he cannot sell our emergency oil — even if Iran causes an oil supply disruption in the Strait of Hormuz, a hurricane or other disaster disables oil production or refining facilities, or any other type of event causes gasoline prices to soar above $4 per gallon.
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Re: THE US Strategic Petroleum Reserve (SPR) Thread (merged)

Unread postby Outcast_Searcher » Tue 21 Feb 2012, 02:49:32

bratticus wrote:In other words, unless the president approves Keystone, he cannot sell our emergency oil — even if Iran causes an oil supply disruption in the Strait of Hormuz, a hurricane or other disaster disables oil production or refining facilities, or any other type of event causes gasoline prices to soar above $4 per gallon.

So a stupid, clearly political move aimed at currying favor with some voting bloc is countered by another even MORE stupid political move aimed at currying favor with another voting bloc. Another normal event in the madhouse that is Capitol Hill...

And you're surprised? Worse, you are going to complain only about ONE side of the stupidity of it all? Give me a break.

The SPR should be there for TRUE emergencies/shortages, as a long term STRATEGIC asset. NOT as a game to gin up votes when gasoline goes above price X but there is no real supply issue (i.e. an EMERGENCY). To me, post Katrina is the ONLY event in recent years even coming close to that state of affairs.

Also, if you're so concerned about a reliable U.S. oil supply, approving Keystone would be a good step in that direction. But no, let's ignore logic and only complain about one aspect of political maneuvering. Yes, that'll help. :roll:
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby dinopello » Tue 27 Oct 2015, 09:56:51

US Plans to sell down SPR to raise $$$

Smart?

The U.S. plans to sell millions of barrels of crude oil from its Strategic Petroleum Reserve from 2018 until 2025 under a budget deal reached on Monday night by the White House and top lawmakers from both parties.

Supporters of the sale argue the U.S. doesn’t require such a big emergency reserve as rising domestic production on the back of the shale boom offsets the need for imports. Critics, including oil analysts and former U.S. energy officials, say using the underground reserve as a piggy bank makes it less effective in meeting its intended purpose: combating a “severe energy disruption.” What’s more, the government would be selling at a time when oil is unlikely to have recovered from its slump over the past 18 months.

The Energy Department, which oversees the reserve, says on average the U.S. paid about $29.70 a barrel for the oil. But after adjusting for inflation and other items, the average cost rises to $74 a barrel, according to ClearView Energy Partners, a Washington-based energy research firm. On Tuesday, West Texas Intermediate, the U.S. oil benchmark, traded at less than $44 a barrel.
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby Subjectivist » Tue 27 Oct 2015, 10:12:16

Stupid is as stupid does.
II Chronicles 7:14 if my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then I will hear from heaven, and I will forgive their sin and will heal their land.
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby ROCKMAN » Tue 27 Oct 2015, 10:36:12

sub - We'll see what the SCOTUS says when the guaranteed lawsuits are brought before it because what you’ve described is a clear violation of CONGRESSIONAL LAW. If you have the better part of a day to sacrifice pull up the CONRESSIONAL LAW that not only states it can’t be done but that even the limited amount of withdrawals allowed under that CONGRESSIONAL LAW have to be replaced in a timely manner.

Of course it could be easily done: all they have to do is get enough of Congress to agree to amend the CONGRESSIONL LAW it passed over 30 years ago. Heck, no problem there getting both parties in Congress to make significant changes in a CONRESSIONAL LAW, eh? They are such a mutually cooperative group. LOL.
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby Cog » Tue 27 Oct 2015, 12:59:18

Perhaps I'm missing something here but normally wouldn't you want to buy more oil for the SPR when the price is low instead of selling it?
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby Tanada » Tue 27 Oct 2015, 14:41:18

Cog wrote:Perhaps I'm missing something here but normally wouldn't you want to buy more oil for the SPR when the price is low instead of selling it?


The proposed plan is to start selling off the SPR in 2018, when theoretically the sale price will be higher than today. How a proposal slated to go into effect more than two years into the future had such an effect on oil prices is a good question for the speculators to answer.
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby ROCKMAN » Tue 27 Oct 2015, 20:27:46

T - Just as big an unkown for the speculators as the effect of selling a significant amount oF SPR oil is how long will it take for the majority of R and D Congress critters to agree to change that CONGRESSIONAL LAW which, if I'm not mistaken, wouod take a super majority.

Also that $29/bbl BS is pure BS. First the obvious: the number is not inflation adjusted: the $30 a bbl we paid innthe mid 80's is worth a lot more then the $45 a bbl we wouod get today. Second, the SPR reserves cost tens of billions of $'s more then just what we paid for the oil. The storage cavens and the maintenance weren't free. I'm too tired to research the actual numbers but adding it all up (including the interest we paid on bonds we used to finance those deficits for so many years I'll make a wild ass guess that our SPR oil has cost us at least $70 to $80 per bbl in 2015 $'s. Selling that oil for less would represent a book loss.

Selling the house that cost you $250,000 for $100,000 would get you a nice revenue infusion...while you lost your ass. LOL. And then consider the damage done to the US economy should the very unlikely event of a major Middle East political upheaval if we didn't have those FEW MONTHS of SPR oil reserves. LOL.
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby ROCKMAN » Wed 28 Oct 2015, 14:58:06

The new budget deal: it would appear they've gotten Congress to agree to modify the law governing the SPR.

"Strategic Petroleum Preserve. Requires the sale of 58 million barrels of oil from the Strategic Petroleum Reserve. $6.5 billion" But no details yet. For instance are they going to repeal that portion of the law that requires the feds to replace the oil in a timely manner?

So how will this impact our "energy independence" effort? The volume represents about 8% of the inventory. Which would cut our security blanket from 137 days to 126 days. IOW we lose 11 days of substitution. And again the details are missing: current law allows only 30 million bbls/month to be withdrawn...I mm bopd.

As far as what US citizens have paid for the SPR oil: that $29/bbl is bullsh*t as proven by the govt's own numbers. From the DOE: "Investment to date - About $27.8 billion ($7 billion for facilities based on replacement value; $20.8 billion for crude oil based on accounting value)."

I'm not even sure the "accounting value number isn't cooked a bit (i.e. – did they take into account the interest the govt has paid on the bonds used to cover our deficits?) But let’s accept it for now. So the oil in the reserve has cost the tax payer $68/bbl…at a minimum. Granted the facilities aren't disappearing but it doesn't change the fact that we have more than twice as much invested in our security blanket as the $29.70/bbl number would imply.

Of course if Congress is playing a little loose with the actual law it won’t be a surprise to see a few lawsuits pop up. And then there the obvious: when the citizens/govt starts to worry about future oil supplies they might want to replace those 58 million bbls. And what would make them nervous: increasing oil prices which would logically mean a higher price would be paid for that replacement then we’ll get by selling it in a couple of years.

And the effect of global oil supplies? Let’s say then dump the oil over a 12 month period. Based upon current global consumption those 58 million bbls would add a whopping 0.017% to the global supply that year. I doubt the KSA will feel much pain. LOL.

And my wild ass guess of $70 -$80 per bbl even impressed me
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby dinopello » Wed 28 Oct 2015, 15:06:36

Maybe we should just sell it all. Think of the awesome party we could have.

Is it a core function of government to hoard oil ? Freedom, I say! FreeDum !
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby StarvingLion » Wed 28 Oct 2015, 15:32:54

You people must be slow. Let me spell it out for you:

YOU DONT OWN ANY STRATEGIC RESOURCE

Not the coal, not the natural gas from fracking either. Its all going to the far east. Why?

BECAUSE YOU ARE BROKE AND HAD TO GIVE IT UP

You are completely dependent on wind and solar. FOR EVERYTHING.

The bullshit about climate change is a hoax to cover the bankruptcy. The far east doesn't give a shit about climate change. Why?

BECAUSE THEY ARE NOT BROKE OBVIOUSLY. OTHERWISE WHATS THE POINT TO THIS CHARADE OF DECARBONISATION?
You have until end of 2022 to live on earth. Then you're dead meat. Bye.
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby Cog » Wed 28 Oct 2015, 15:37:58

The budget deficit over the next year and a half is going to be in the hundreds of billions. And we are selling $6.5 billion in oil to balance the books?

We are so fooked.
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby ROCKMAN » Wed 28 Oct 2015, 15:51:55

To be honest it's been a rough few days for the Rockman. Thanks Dog the pissed off kitty is back and brought a smile to my tired face.
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby Plantagenet » Wed 28 Oct 2015, 16:46:06

ROCKMAN wrote:The volume represents about 8% of the inventory.


Actually, the deals Obama cut with Congress call for the sale of 20% of the SPR.

WaPo: congress-and-obama-tap-petroleum-reserve-to-plug-hole-in-the-budget

Obama has already sold oil from the SPR a couple of times in the last 7 years. No one seemed to mind very much. I don't think most of the MSM even covered it. This will just be a much larger sale.

Some of the money goes to the budget deal, from the sale of 8% of the SPR, and a second sale of another 12% of the SPR will pump money into the Highway Trust Fund
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby Tanada » Wed 28 Oct 2015, 18:44:08

Plantagenet wrote:
ROCKMAN wrote:The volume represents about 8% of the inventory.


Actually, the deals Obama cut with Congress call for the sale of 20% of the SPR.

WaPo: congress-and-obama-tap-petroleum-reserve-to-plug-hole-in-the-budget

Obama has already sold oil from the SPR a couple of times in the last 7 years. No one seemed to mind very much. I don't think most of the MSM even covered it. This will just be a much larger sale.

Some of the money goes to the budget deal, from the sale of 8% of the SPR, and a second sale of another 12% of the SPR will pump money into the Highway Trust Fund


On the other side of the coin seems how it does not go into effect until 2018 what are the chances Congress will change their minds once again by that date?
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Re: THE US Strategic Petroleum Reserve (SPR) Thread Pt. 2

Unread postby ROCKMAN » Thu 29 Oct 2015, 07:54:18

"Obama has already sold oil from the SPR a couple of times in the last 7 years." Nearly all the oil that has been sold from the SPR for many years has been replaced...as required by law. And in reality almost none of that oil was "sold": it was "loaned" to companies who then replaced it in kind with more oil. In some cases, like the first time oil was released during the beginning of President Obama's those companies made out great: the price of the oil they got was less then the price of the oil they had to buy to replace what had been transferred to them. President Obama hasn't been stripping oil per se from the reserve. In fact a year after he took office the SPR reserves reached the highest level in history: 727.6 million bbls on 27 December 2009. Today it sits at 713.5 million bbls...still a tad bit higher then when the POTUS took office.

And as pointed out it's of no consequence how much SPR oil the current POTUS would like to sell because he won't be in office when the sales comes about. If, in fact, if they happen at all. The time lag of DC politicians really is comical: when oil was selling at record levels no significant draw down of the SPR to speak of. And now with oil prices lower then the have been for many years they talk as though they might be serious about a real draw down.
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Selling half of the Strategic Petroleum Reserve

Unread postby Revi » Fri 26 May 2017, 07:30:13

I guess the plan is to sell half of the Strategic Petroleum Reserve to fill holes in the budget.

It would make 500 million this year, and $17 billion in the next 20 years.

What do you think? Is it a good idea? Buy high and sell low?

Maybe we might need the oil in the next decade or so?

https://www.washingtonpost.com/news/ene ... 99a9eab8df
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