Why It Would Be Unwise For Joe Biden To Tap The Strategic Petroleum Reserve

[Doc7505]

Why It Would Be Unwise For Joe Biden To Tap The Strategic Petroleum Reserve​

Why It Would Be Unwise For Joe Biden To Tap The Strategic Petroleum Reserve

Releasing oil from the SPR to moderate prices would be inadvisable, not least because the government doesn't know what the price should be.

www.forbes.com

With oil prices at $80/barrel, and OPEC+ refusing to accelerate its relaxing of production quotas, some have called on President Biden to release oil from the Strategic Petroleum Reserve.
Friday morning, Energy Secretary Jennifer Granholm laughed at a question about what the administration might do to reduce gasoline prices, blaming OPEC and U.S. oil companies for not drilling, and saying that Biden would be considering an SPR release. “The SPR is certainly on the table as an option,” Granholm said.
Indeed, over the years, oil price volatility has been a concern for producers and consumers, although to be honest, consumers usually complain about volatile prices only when they are high and producers tend to complain about volatility when prices collapse.
~Snip~
Finally, the use of strategic reserves for short-term political gain is certainly inadvisable. As my colleague Larry Goldstein wrote recently, it is rather like tapping into your retirement fund to pay for a vacation. To which I would add, it might feel good in the short-term, but in the long run you will usually regret it.


Comment:
Since two articles have been banned in regard to the SPR, I thought I might take a different tack on the subject.
Politically this is inadvisable to tap America's SPR to alleviate the self made crisis by this administration.
The logical thing to do is to rescind the Executive orders by Joey Xi and return to the 2020 oil regulations.
Obviously though logical and sane, this administration would not allow this to happen. It would put back their impossible "Utopian Green Deal" aspirations.
With this administrations blatant show of weakness in it's foreign policies missteps it's no wise to deplete our SPR at a time when both China and Russia are rattling their sabers. One wrong move on China versus Taiwan, or Putin versus the Ukraine can light a potential cascade of war.

 

[pknopp]

The problem is not a lack of oil. When oil reached $145 there was plenty of oil. The problem is the money markets.

 

[JGalt]

The problem is not a lack of oil. When oil reached $145 there was plenty of oil. The problem is the money markets.

You do know that Saudi Arabia and Russia, members of the OPEC+ production group, told Biden to go pound sand when he asked them to pump more oil into global markets, right?

The only reason he want to sell off some of those reserves is to fend off the blame he's getting right now, for high gas prices. He sees 2022 coming right around the corner and knows damned well he's going to get pegged for it. This is a purely political move being done because the Democrats know they're in deep shit. This way, he can at least say he "did something."

 

[Doc7505]

The problem is not a lack of oil. When oil reached $145 there was plenty of oil. The problem is the money markets.

~~~~~~
Wait until January & February come around and you see your fuel heating bill.. But knowing you you probably rent and depend on your landlord to furnish your heating. It'll be a blast to watch your face when he adds the extra higher costs of heating to your rent.

 

[pknopp]

You do know that Saudi Arabia and Russia, members of the OPEC+ production group, told Biden to go pound sand when he asked them to pump more oil into global markets, right?

And? What does that have to do with anything I've said? Should we discuss the market price of Strawberries also?

The only reason he want to sell off some of those reserves is to fend off the blame he's getting right now, for high gas prices. He sees 2022 coming right around the corner and knows damned well he's going to get pegged for it. This is a purely political move being done because the Democrats know they're in deep shit. This way, he can at least say he "did something."

I haven't seen where he wants to sell off anything but again, that does not address my point in any way.

 

[pknopp]

~~~~~~
Wait until January & February come around and you see your fuel heating bill.. But knowing you you probably rent and depend on your landlord to furnish your heating. It'll be a blast to watch your face when he adds the extra higher costs of heating to your rent.

Lashing out is not a rebuttal either. I note that there are no shortages but this is your reply? Grow up.

 

[JGalt]

Lashing out is not a rebuttal either. I note that there are no shortages but this is your reply? Grow up.

Just be honest with everyone and admit that Joe Biden doesn't have a clue.

 

[pknopp]

Just be honest with everyone and admit that Joe Biden doesn't have a clue.

You need deprogrammed. Do you want to address my point that there are no shortages so there is no need to release anything or not?

 

[JGalt]

You need deprogrammed. Do you want to address my point that there are no shortages so there is no need to release anything or not?

I never said there was a shortage of oil, even though there currently is a global shortage of natural gas. Even so, he is getting the blame for the pump prices. The Strategic Petroleum Reserves are located on the Louisiana and Texas coasts, right close to the refineries. And they're not being "released", the Department of Energy would sell the reserves to oil companies.

 

[pknopp]

I never said there was a shortage of oil, even though there currently is a global shortage of natural gas. Even so, he is getting the blame for the pump prices. The Strategic Petroleum Reserves are located on the Louisiana and Texas coasts, right close to the refineries. And they're not being "released", the Department of Energy would sell the reserves to oil companies.

So you had no complaint with what I said but still felt a need to go off on some tangent.

 

[Doc7505]

Lashing out is not a rebuttal either. I note that there are no shortages but this is your reply? Grow up.

Whatever fuel and LPG shortages there are in America today can be placed at the foot of Joey Xi Bai Dung and those he has appointed.

 

[pknopp]

Whatever fuel and LPG shortages there are in America today can be placed at the foot of Joey Xi Bai Dung and those he has appointed.

There are no fuel shortages.

 

[Synthaholic]

You do know that Saudi Arabia and Russia, members of the OPEC+ production group, told Biden to go pound sand when he asked them to pump more oil into global markets, right?

You just absolved Biden of any blame. Good job!

 

[Old Rocks]

Why It Would Be Unwise For Joe Biden To Tap The Strategic Petroleum Reserve​

Why It Would Be Unwise For Joe Biden To Tap The Strategic Petroleum Reserve

Releasing oil from the SPR to moderate prices would be inadvisable, not least because the government doesn't know what the price should be.

www.forbes.com

With oil prices at $80/barrel, and OPEC+ refusing to accelerate its relaxing of production quotas, some have called on President Biden to release oil from the Strategic Petroleum Reserve.
Friday morning, Energy Secretary Jennifer Granholm laughed at a question about what the administration might do to reduce gasoline prices, blaming OPEC and U.S. oil companies for not drilling, and saying that Biden would be considering an SPR release. “The SPR is certainly on the table as an option,” Granholm said.
Indeed, over the years, oil price volatility has been a concern for producers and consumers, although to be honest, consumers usually complain about volatile prices only when they are high and producers tend to complain about volatility when prices collapse.
~Snip~
Finally, the use of strategic reserves for short-term political gain is certainly inadvisable. As my colleague Larry Goldstein wrote recently, it is rather like tapping into your retirement fund to pay for a vacation. To which I would add, it might feel good in the short-term, but in the long run you will usually regret it.


Comment:
Since two articles have been banned in regard to the SPR, I thought I might take a different tack on the subject.
Politically this is inadvisable to tap America's SPR to alleviate the self made crisis by this administration.
The logical thing to do is to rescind the Executive orders by Joey Xi and return to the 2020 oil regulations.
Obviously though logical and sane, this administration would not allow this to happen. It would put back their impossible "Utopian Green Deal" aspirations.
With this administrations blatant show of weakness in it's foreign policies missteps it's no wise to deplete our SPR at a time when both China and Russia are rattling their sabers. One wrong move on China versus Taiwan, or Putin versus the Ukraine can light a potential cascade of war.

If he chose not to tap the reserve, you would be posting why his decision was wrong. There is no honesty in you 'Conservatives'.

 

[Resnic]

All he has to do is undo the reversals he did with Trump and everything would be fine and dandy.

But at the end of the day he won't actually fix the problem because joe wants an energy crisis. He knowingly created the problem, he knows it's easy to fix but he keeps blaming it on other things instead of just doing it.

Biden and his administration want higher fuel costs and shortages.

 

[Harpy Eagle]

You do know that Saudi Arabia and Russia, members of the OPEC+ production group, told Biden to go pound sand when he asked them to pump more oil into global markets, right?

Can you blame them since just a bit more than a year ago the former guy was threatening them if they did not slash their production?

 

[Harpy Eagle]

Whatever fuel and LPG shortages there are in America today can be placed at the foot of Joey Xi Bai Dung and those he has appointed.

There are no shortages, which is why American companies will not up production much. They are making money hand over fist and do not have to incur the added expenses of increased production.

 

[22lcidw]

There are no shortages, which is why American companies will not up production much. They are making money hand over fist and do not have to incur the added expenses of increased production.

There are choices on how much we could pay. And the Progs took the globalist way while pushing their green crap. People are getting more and more tired of this but feel helpless.

 

[Harpy Eagle]

There are choices on how much we could pay.

what choices are those? Quick Trip vs Shell?

 

[Independentthinker]

Why It Would Be Unwise For Joe Biden To Tap The Strategic Petroleum Reserve​

Why It Would Be Unwise For Joe Biden To Tap The Strategic Petroleum Reserve

Releasing oil from the SPR to moderate prices would be inadvisable, not least because the government doesn't know what the price should be.

www.forbes.com

With oil prices at $80/barrel, and OPEC+ refusing to accelerate its relaxing of production quotas, some have called on President Biden to release oil from the Strategic Petroleum Reserve.
Friday morning, Energy Secretary Jennifer Granholm laughed at a question about what the administration might do to reduce gasoline prices, blaming OPEC and U.S. oil companies for not drilling, and saying that Biden would be considering an SPR release. “The SPR is certainly on the table as an option,” Granholm said.
Indeed, over the years, oil price volatility has been a concern for producers and consumers, although to be honest, consumers usually complain about volatile prices only when they are high and producers tend to complain about volatility when prices collapse.
~Snip~
Finally, the use of strategic reserves for short-term political gain is certainly inadvisable. As my colleague Larry Goldstein wrote recently, it is rather like tapping into your retirement fund to pay for a vacation. To which I would add, it might feel good in the short-term, but in the long run you will usually regret it.


Comment:
Since two articles have been banned in regard to the SPR, I thought I might take a different tack on the subject.
Politically this is inadvisable to tap America's SPR to alleviate the self made crisis by this administration.
The logical thing to do is to rescind the Executive orders by Joey Xi and return to the 2020 oil regulations.
Obviously though logical and sane, this administration would not allow this to happen. It would put back their impossible "Utopian Green Deal" aspirations.
With this administrations blatant show of weakness in it's foreign policies missteps it's no wise to deplete our SPR at a time when both China and Russia are rattling their sabers. One wrong move on China versus Taiwan, or Putin versus the Ukraine can light a potential cascade of war.

This would only be a short term solution and Biden's policies only make it worse long term, not better. In fact, if I remember correctly, the last time we tapped reserves, gas prices at the pump went down like 20 cents per gallon. While that is lower, it's really not worth tapping the reserves. Then we eventually have to replenish the reserves at a higher price than the barrels which are currently there.