User Panel
Posted: 5/23/2017 12:07:30 PM EDT
"The U.S. Strategic Petroleum Reserve (SPR) SPR-STK-T-EIA, the world's largest, holds about 688 million barrels of crude in heavily guarded underground caverns in Louisiana and Texas."
"The White House budget, which will be delivered to Congress on Tuesday, proposes to start selling SPR oil in fiscal 2018, which begins on Oct. 1. The sales would generate $500 million in the first year, documents released by the administration showed. Sales from the reserve would gradually rise over the following years, peaking at nearly $3.9 billion in 2027, and totaling nearly $16.6 billion from 2018 to 2027. A release of half over 10 years averages about 95,000 barrels per day (bpd), or 1 percent of current U.S. output. Although the figure is equivalent only to the output of a mid-sized field, it sends a powerful signal about the United States' decreasing need for imports as its own production reaches new highs." "The IEA, which counts the United States as a member, requires member countries to keep strategic stocks equal to 90 days of the previous year’s net oil imports. PVM said if U.S. imports in coming years matched those of 2016, the country would need to keep 489 million barrels of oil in the SPR, some 140-150 million barrels above the proposed new level." "The United States has more leeway to release SPR crude as its own production C-OUT-T-EIA has surged 49 percent over the past five years." http://www.reuters.com/article/us-usa-oil-reserves-idUSKBN18J0T2 |
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I don't agree with that spr should be maintained, especially while crude prices are low.
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Has anyone here actually been in the SPR caverns? They must be ginormous.
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Why sit on it when we have an absurd amount of proven reserves plus technology that has no par in recovering those reserves?
Seriously. I get "money in the bank" and "oh shit" cases. But with the number of capped Wells across the united States... Less debt seems like a smarter move. |
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I am not an oil expert, but why are we importing oil if we need to sell oil? couldn't we just sell that to ourselves cheaper?
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US oil consumption is roughly 20 million barrels per day, for perspective.
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I am not an oil expert, but why are we importing oil if we need to sell oil? couldn't we just sell that to ourselves cheaper? View Quote Type of crude and location. My understanding is many US refineries are setup for heavy crude and much of what we produce is light crude. Also getting domestic oil to East and West coast refineries is tricky. (Anyone with direct knowledge feel free to correct me) |
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I am not an oil expert, but why are we importing oil if we need to sell oil? couldn't we just sell that to ourselves cheaper? View Quote We also important a lot of finished / refined products on the coast line because it's cheaper to refine crude in other countries due to emission regulations, etc. We also export a significant volume of finished product. |
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Those dudes at Bryan Mound guarding the place didn't look like they wanted to play around.
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Why sit on it when we have an absurd amount of proven reserves plus technology that has no par in recovering those reserves? Seriously. I get "money in the bank" and "oh shit" cases. But with the number of capped Wells across the united States... Less debt seems like a smarter move. View Quote We took it out of the ground, where oil is stored for FREE. We put back into the ground, where it should be stored for free ...but oh no, that can't happen, because ...government. It's expensive. |
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Why sit on it when we have an absurd amount of proven reserves plus technology that has no par in recovering those reserves? Seriously. I get "money in the bank" and "oh shit" cases. But with the number of capped Wells across the united States... Less debt seems like a smarter move. View Quote If anything this demonstrates what an oil powerhouse the US is these days. Things are a lot different now compared to when the reserve was created. What's the shelf life on a bbl of oil? Can it be stored indefinitely? |
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Type of crude and location. My understanding is many US refineries are setup for heavy crude and much of what we produce is light crude. Also getting domestic oil to East and West coast refineries is tricky. (Anyone with direct knowledge feel free to correct me) View Quote View All Quotes View All Quotes Quoted:
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I am not an oil expert, but why are we importing oil if we need to sell oil? couldn't we just sell that to ourselves cheaper? (Anyone with direct knowledge feel free to correct me) |
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It wouldn't be so bad IF, we were just sitting on it. But we're not, government is involved. Which means that crap cost a lot of money to store in the fucking ground. We took it out of the ground, where oil is stored for FREE. We put back into the ground, where it should be stored for free ...but oh no, that can't happen, because ...government. It's expensive. View Quote |
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We have plenty of oil already underground that hasn't been tapped.
Sell what's already been stored at a higher margin vs extracting what's still in the ground at a higher cost. Not a bad move. The US is sitting on plenty of crude. |
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I tend to agree with you. That being said, I think this would take us below a 90-day reserve threshold? How quickly can we tap into the reserves in the ground? If anything this demonstrates what an oil powerhouse the US is these days. Things are a lot different now compared to when the reserve was created. What's the shelf life on a bbl of oil? Can it be stored indefinitely? View Quote I dare say that the plays in OK/TX/ND could outrun their support industries (specifically local tank storage) without a doubt. |
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It wouldn't be so bad IF, we were just sitting on it. But we're not, government is involved. Which means that crap cost a lot of money to store in the fucking ground. We took it out of the ground, where oil is stored for FREE. We put back into the ground, where it should be stored for free ...but oh no, that can't happen, because ...government. It's expensive. View Quote |
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It wouldn't be so bad IF, we were just sitting on it. But we're not, government is involved. Which means that crap cost a lot of money to store in the fucking ground. We took it out of the ground, where oil is stored for FREE. We put back into the ground, where it should be stored for free ...but oh no, that can't happen, because ...government. It's expensive. View Quote View All Quotes View All Quotes Quoted:
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Why sit on it when we have an absurd amount of proven reserves plus technology that has no par in recovering those reserves? Seriously. I get "money in the bank" and "oh shit" cases. But with the number of capped Wells across the united States... Less debt seems like a smarter move. We took it out of the ground, where oil is stored for FREE. We put back into the ground, where it should be stored for free ...but oh no, that can't happen, because ...government. It's expensive. |
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Now is a great time to sell. Prices are going down. I'm more worried about them selling off the Strategic Hydrogen Reserve. View Quote View All Quotes View All Quotes |
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16.6 Billion you say....
...hmmm, isn't that about what the wall will cost? I'd rather have the freakin wall than 16.6 Billion in oil under the ground. But what do I know. |
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If you see prices going down, or even if prices hold at a slightly higher rate that would offset your cost of maintenance/storage....and your cost to create it has gone down in the last few years...
Sell it! |
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This is Monopoly it ain't bingo.
What else are you gonna do when Saudi owns the largest refinery? |
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Do we really have one of those? We have a Strategic Helium Reserve, I think. View Quote View All Quotes View All Quotes |
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This is the perfect time for it, on account of how crude oil costs next to fucking nothing right now.
No, wait, not "perfect", the other thing-- yeah, retarded, it's a retarded time to sell the reserve. Why couldn't these clown-town motherfuckers sell off some of the reserve when gas was four fifty a fucking gallon? |
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This is the perfect time for it, on account of how crude oil costs next to fucking nothing right now. No, wait, not "perfect", the other thing-- yeah, retarded, it's a retarded time to sell the reserve. Why couldn't these clown-town motherfuckers sell off some of the reserve when gas was four fifty a fucking gallon? View Quote |
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Do we really have one of those? We have a Strategic Helium Reserve, I think. View Quote View All Quotes View All Quotes |
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This is the perfect time for it, on account of how crude oil costs next to fucking nothing right now. No, wait, not "perfect", the other thing-- yeah, retarded, it's a retarded time to sell the reserve. Why couldn't these clown-town motherfuckers sell off some of the reserve when gas was four fifty a fucking gallon? View Quote |
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good deal...Memorial Day Weekend and diesel goes up .10 a gallon....squash that price....
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Bad idea.
Next thing you know people will be getting down to a 90 round zombie reserve because ammo is cheap and plentiful at the moment. |
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You're right. I fixed it. View Quote "The reserve was established with the enactment of the Helium Act of 1925. The strategic supply provisioned the noble gas for airships, and in the 1950s became an important source of coolant during the Cold War and Space Race." https://en.wikipedia.org/wiki/National_Helium_Reserve "Get gubberment outta the helium business!" |
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This is going to fuck the oil market really hard.
But, the idea of a couple of large stockpiles makes me wince. It would be better if there was more dispersement of the actual reserves in the form of required capacity at the individual refineries. (This was brought up a while ago) Having the 60+ US based refineries add an equivalent amount of storage locally and then cut back the amount held at the SPR locations. This would help both time-to-market (SPR can only shed 4M barrels a day anyhow) and reduce dependance on spot order fulfilling. |
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Good. There really isn't a need for it to be full up right now. I can see keeping half for the event of a war or something but we have plenty of oil in the ground ready to be pumped out.
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