U.S. Won’t Buy Oil to Refill Strategic Petroleum Reserve
The administration canceled the purchase despite depleting the emergency supply by 43%, the lowest since the 1980s.
President Joe Biden’s administration dropped its plan to buy oil to refill the Strategic Petroleum Reserve (SPR) due to rising oil prices.
The oil would have gone to Louisiana’s Bayou Choctaw SPR site in August and September.
The administration canceled the purchase despite depleting the emergency supply by 43%, the lowest since the 1980s.
The emergency supply holds 600 million barrels. The supply is at 363 million barrels.
Then again, the administration planned only to buy three million barrels. It’s still better than nothing, though:
The Energy Department has been slowly refilling the emergency oil supply after it reached a 40-year-low following the administration’s unprecedented drawdown of a record 180 million barrels in the wake of Russia’s invasion of Ukraine. It currently holds about 363 million barrels, according to Energy Department data, down from almost 600 million at the start of 2022.
“Domestic crude prices are likely to remain too high for the remainder of the year for DOE to resume its refilling program,” said Bob McNally, president of consultant Rapidan Energy Group and a former adviser to President George W. Bush. “If pump prices keep rising, the Biden administration will shift gears and reconsider SPR releases, though we current do not think they are imminent.”
Officials insisted it canceled the purchase to save the taxpayers some money.
Dude, we know that you hate oil. The administration has been ramming electric vehicles down our throats since it took over.
In December, the Department of the Interior offered the most restrictive offshore drilling plan in U.S. history, months after only proposing three oil drilling leases through 2029.
At the same time, the administration ended oil and gas leases in Alaska except for ConocoPhillips 30-year oil project.
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Comments
It is hard to imagine what would be different if Biden were loyal to China rather than to the U.S.
“if”?
The subjunctive is unjustified.
Looking at Biden’s Admin one issue at a time is one thing, looking at the sum total leaves a strong impression of Treason for $. I agree about rebuilding the reserve from American production. What could the Biden Admin do about restarting petroleum, especially in conservative states? Isn’t that similar to the illegal issue? Why can’t states produce for their own use?
in all fairness, prices will plummet after Biden is out of office, so yay for them on being good stewards.
There is a refining problem, demand is just about equal to production capacity, also California is harassing their refineries, that is about a dozen. They will need to be replaced, that is an opportunity for conservative states.
I honestly believe that a confederacy of energy independent states needs to be set up.
However the grid in many red states is about as bad as blue states or worse. This is made worse by the mass migration.
I agree, and they should setup their own reserves. Being producers + having reserves would be a big deal if SHTF.
Because the major drawdown of SPR by FJB, there’s still lots of past-due maintenance required on the SPR infrastructure (i.e. pipes and pumps). Storing crude in salt cavern, has its pros and cons. Mostly cons, when it’s depleted for political expediency.
TL ; DR
FJB
– A Veteran turned-into-an Oil & Gas professional
Yes indeed. The caverns themselves may have structural problems from drainage that may preclude refilling. It was never as straightforward as pump out the existing oil and just fill it back up later on. The systems weren’t designed for this. They were designed to be used to meet a no kidding geopolitical emergency not as a psychological cushion for rising gas prices used by various Presidents to assist with their re-election odds.
“…not as a psychological cushion for rising gas prices used by various Presidents to assist with their re-election odds.”
Replace by “…not to buy votes.”
6 of one, 1/2 dozen of the other.
Dependent on China for rare earth
Dependent on Russia and MENA for oil
What could possibly go wrong?
There has been a major rare earth find in America.
Firstly, do you think that solves all of the problems and goes right into the production line?
Second, remember who is in the WH.
https://www.wsj.com/articles/the-u-s-wants-a-rare-earths-supply-chain-heres-why-it-wont-come-easily-dfc3b632
I am thinking about them being out of the Whitehouse. Also potential for moving ahead without Feds permission.
Regarding rare earth, they are common but in very low concentrations, some areas have higher concentrations and are easier to extract., less costly to extract.
Given the collapse of our country’s traditional Social and P0litical Contract there is another factor that for whatever weight, must be taken into consideration.
“I am thinking about them being out of the Whitehouse.”
We can no longer be absolutely sure of them leaving, regardless of any vote count.
Subotai Bahadur
And,exactly what do you think the chances of getting a mine permit?
Cue the EPA, a bunch of tribes claiming it is “sacred land” (is there any that isn’t? ), and a host of other moonbats. Somehow it will impact the LGBTQXYZETC crowd, the “POC”.
Further, even if we mine it, we have long lost the processing technology. Want to build a processing plant? Here comes the moonbat crowd.
Rare earth’s aren’t rare, btw.
On the verge of WW3… but nah, nothing to see here. Move along.
On THIS they suddenly discover fiscal responsibility. Unbelievable.
Everything biden touches explodes in his face. Never should have advanced beyond the senate.
Just like Pale work accidents, except with Biden we all suffer for his actions.
“We’ll refill it with EV fuel”
Frank G
Bought from where, Beijing?
Maybe you should read his comment again.
Now, we all know what Mr. Biden means when he says: “Let’s finish the job!”
I’ve been saying for a while that the actual purpose of depleting the Strategic Reserve wasn’t reducing oil prices but rather destroying our military readiness. I think this confirms it.
https://minnesotareformer.com/2022/07/07/northeast-minnesotas-fraught-choice-precious-metals-v-precious-water/
doesn’t it strike anyone as funny, they want to buy oil on the open market something that came out of the ground to put it back in the ground, when they could drill on federal land and not even have to transport the oil, just drill and cap the well for future use, if they really feel the need they could transport it to the spr.
True, but the wells would not produced as fast as it can be pumped from storage.
The last thing on the minds of Biden’s keepers is the welfare of US citizens. All we’re good for is paying taxes to fund their fun programs around the world. Who will they support next? The Ukraine? Hamas? So many fun options!