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Posted: 12/26/2008 7:14:57 AM EST
While gas is cheap????
Link Posted: 12/26/2008 7:16:48 AM EST
Makes sense to me, but I think we keep adding to it regardless of price, probably the same amount of $ each month, but when prices are low, we get more barrels, called dollar-cost-averaging.
Link Posted: 12/26/2008 7:18:23 AM EST
Bush has doubled it since sept. 11 2001. Klinton used it like his own personal oil piggy bank.

Look for Osamba to do the same
Link Posted: 12/26/2008 7:22:00 AM EST
Originally Posted By CooperDb:
Bush has doubled it since sept. 11 2001. Klinton used it like his own personal oil piggy bank.

Look for Osamba to do the same


Unfortunately the rate of consumption now compared to where it was during Slick Willy's term(s) is nowhere close. We need to stockup as much as possible, and still work on alternative sources. I've noticed recently as I'm sure many have, that folks with big ass SUV's are cruising around carefree now, where as before they kept them garaged or sidelined. We're becoming far too complacent and with the warmer months not too far in the future, that means more folks driving longer distances, we're likely to see oil rocket back up again, especially if OPEC continues to cut production in an effort to get higher prices.
Link Posted: 12/26/2008 7:23:35 AM EST
IIRC the royalties for oil leases are paid "in kind" (ie oil) so it gets added to all the time...
Link Posted: 12/26/2008 4:41:02 PM EST
The Democrats made it illegal for the government to add any more oil to the SPR.
Link Posted: 12/26/2008 4:44:09 PM EST
Originally Posted By nova96:
IIRC the royalties for oil leases are paid "in kind" (ie oil) so it gets added to all the time...


I don't think so...I am pretty sure the royalties are paid in dollars. For on-shore production the feds kick a lot of the royalties back to the state/local governments in lieu of property taxes.
Link Posted: 12/26/2008 4:53:57 PM EST
Originally Posted By GunLvrPHD:
Originally Posted By nova96:
IIRC the royalties for oil leases are paid "in kind" (ie oil) so it gets added to all the time...


I don't think so...I am pretty sure the royalties are paid in dollars. For on-shore production the feds kick a lot of the royalties back to the state/local governments in lieu of property taxes.


No, oil in-kind is usually at low prices for oil due to lower profits and a balancing effect on the market.

Now would be a GREAT time for expansion. We are at 750 million barrels.

Because the government can afford to inventory oil, they should do so with respect to price stabilization as it offers a minimum of TCO...they don't pay tax on it, unlike all others.
Link Posted: 12/26/2008 4:57:01 PM EST
Fill it up while the price and demand is low.
Link Posted: 12/26/2008 4:57:26 PM EST
Seriously? You want Obamas helicopters and tanks to have extra fuel to chase you and kill you just because you want to be free and exercise your constitutionally guaranteed freedoms?

Link Posted: 12/26/2008 5:01:50 PM EST
No oil is going down to about $10 to $15 a barrel.

It is to expensive yet.
Link Posted: 12/26/2008 5:12:16 PM EST
Originally Posted By 1Bigdog:
No oil is going down to about $10 to $15 a barrel.

It is to expensive yet.


I really doubt that. Oil needs to sell at $30+ for some wells to break even.
Link Posted: 12/26/2008 5:44:30 PM EST
Originally Posted By Keith_J:
Originally Posted By GunLvrPHD:
Originally Posted By nova96:
IIRC the royalties for oil leases are paid "in kind" (ie oil) so it gets added to all the time...


I don't think so...I am pretty sure the royalties are paid in dollars. For on-shore production the feds kick a lot of the royalties back to the state/local governments in lieu of property taxes.


No, oil in-kind is usually at low prices for oil due to lower profits and a balancing effect on the market.

Now would be a GREAT time for expansion. We are at 750 million barrels.

Because the government can afford to inventory oil, they should do so with respect to price stabilization as it offers a minimum of TCO...they don't pay tax on it, unlike all others.



where is all of that kept???


Link Posted: 12/26/2008 5:50:54 PM EST
Originally Posted By fsk1290:
Originally Posted By Keith_J:
Originally Posted By GunLvrPHD:
Originally Posted By nova96:
IIRC the royalties for oil leases are paid "in kind" (ie oil) so it gets added to all the time...


I don't think so...I am pretty sure the royalties are paid in dollars. For on-shore production the feds kick a lot of the royalties back to the state/local governments in lieu of property taxes.


No, oil in-kind is usually at low prices for oil due to lower profits and a balancing effect on the market.

Now would be a GREAT time for expansion. We are at 750 million barrels.

Because the government can afford to inventory oil, they should do so with respect to price stabilization as it offers a minimum of TCO...they don't pay tax on it, unlike all others.



where is all of that kept???




Empty salt domes in Louisiana.

Link Posted: 12/26/2008 5:53:09 PM EST
Originally Posted By JosieWales:
Originally Posted By fsk1290:
Originally Posted By Keith_J:
Originally Posted By GunLvrPHD:
Originally Posted By nova96:
IIRC the royalties for oil leases are paid "in kind" (ie oil) so it gets added to all the time...


I don't think so...I am pretty sure the royalties are paid in dollars. For on-shore production the feds kick a lot of the royalties back to the state/local governments in lieu of property taxes.


No, oil in-kind is usually at low prices for oil due to lower profits and a balancing effect on the market.

Now would be a GREAT time for expansion. We are at 750 million barrels.

Because the government can afford to inventory oil, they should do so with respect to price stabilization as it offers a minimum of TCO...they don't pay tax on it, unlike all others.



where is all of that kept???




Empty salt domes in Louisiana.



And Texas. Deep down, super-secret storage no one can see. We take it on credit of EIA that we have it...well, that and DoD.
Link Posted: 12/26/2008 5:55:14 PM EST
[Last Edit: 12/26/2008 5:57:36 PM EST by 1Bigdog]
Originally Posted By DragoMuseveni:
Originally Posted By 1Bigdog:
No oil is going down to about $10 to $15 a barrel.

It is to expensive yet.


I really doubt that. Oil needs to sell at $30+ for some wells to break even.


Every item produced has a "break even price".

Every item produced also has a price that is less than break even that it still makes sense to produce it and sell it at that price because of a few different reasons one of which is cash flow.

So therefor they still may pump it and sell it for less than break even cost. Once it gets below that price they will shut the well down.
Link Posted: 12/26/2008 6:33:10 PM EST
We should have sold it at $144/bbl, then turned around and buy it at $40/bbl. We could have more than tripled our reserves.
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