For the Love of GOD!....We are pumping from the SPR ?????

[Mega]

My understanding was only & i mean only to be used in Hurricanes/Wars !
http://www.businessinsider.com/the-d...release-2011-6

Mike

[necron99]

Re: For the Love of GOD!....We are pumping from the SPR ?????

The article seems to be talking about some other countries' Strategic Petroleum Reserve, not the US one. I think the article is referring to stockpiles which oil-producing nations use in order to smooth out production.

However, I have a vague memory that Bill Clinton started selling off the US SPR, for non-emergency reasons for the first time, as part of Al Gore's "Reinventing Government" program (1995-1996). Quantities have been sold and also bought and replenished, since that time. But I think we're at a net down since the peak size of the reserve in the 90s.

As we all know, planning and preparation for tomorrow must always take a back-seat to a stable economy (read: profit) today. Tomorrow we'll have wondrous magical technology to squeeze gasoline out of turnips or whatever, so eeeeeevverrryybody just stay calm and keep on consuming.

[thriftyandboringinohio]

Re: For the Love of GOD!....We are pumping from the SPR ?????

Mike, for many years now the US has used the strategic petroleum reserve as a political tool to show the people that the Govt is trying everything to keep down fuel prices.
It never does much, but it's good political theater.

I'm a little surprised to see this last use of it, though.
In the past they've only done it when gasoline prices rise dramatically and the headlines of every newspaper are screaming about fuel prices.
This one seems to come out of the blue, no real reason for the show.

[Starving Steve]

Re: For the Love of GOD!....We are pumping from the SPR ?????

Selling oil from the Strategic Petroleum Reserver (SPR) in order to drive-down long-term oil prices is like selling gold in Fort Knox to support the value of the dollar. Over the long-run, maybe for any time period longer than one month, the moves would be counter-productive and laughable!

The selling of oil from the SPR was apparently done at the urging of Bernanke, apparently as one of his secret plans to make his failed economic programme for recovery look better, at least in the history books...... Sad to predict, one month from now, the Bernanke programme (his ZIRP, bond-buying, money-printing, re-inflation, covert dollar de-valuation, helicopter drops of M1, federal deficit-spending, bail-outs, QE 1, QE 2, QE 2.5, market interventions, market supports, and now his wholesale SPR-dumping) will have no affect whatsoever except to destroy what little confidence in the dollar that remains.

[c1ue]

Re: For the Love of GOD!....We are pumping from the SPR ?????

The article I saw mentioned 60 million barrels - seems like a lot except that is slightly less than 3 days worth of US usage. Less than 1%...
Obama churns out another publicity stunt.

[lektrode]

Re: For the Love of GOD!....We are pumping from the SPR ?????

The article I saw mentioned 60 million barrels - seems like a lot except that is slightly less than 3 days worth of US usage. Less than 1%...
Obama churns out another publicity stunt.

precisely...
one would've thot it might've made more sense to 'intervene' back a few months ago, as it was bouncing off 115 - now that the trend = down (due to the obvious failure of all the other 'interventions' since 2009), NOW, as the media starts to focus on next years elections? NOW they gonna try and drive the price down?

tho this suggests theres more in play here than the IEA:

http://online.wsj.com/article/SB1000...811644642.html

• MIDDLE EAST NEWS
• JUNE 22, 2011

Saudi Suggests 'Squeezing' Iran Over Nuclear Ambitions


A leading member of Saudi Arabia's royal family warned that Riyadh could seek to supplant Iran's oil exports if the country doesn't constrain its nuclear program, a move that could hobble Tehran's finances.
In closed-door remarks earlier this month, Saudi Prince Turki al-Faisal also strongly implied that Riyadh would be forced to follow suit if Tehran pushed ahead to develop nuclear weapons and said Saudi Arabia is preparing to employ all of its economic, diplomatic and security assets to confront Tehran's regional ambitions.
"Iran is very vulnerable in the oil sector, and it is there that more could be done ...


the rest behind the paywall...

[charliebrown]

Re: For the Love of GOD!....We are pumping from the SPR ?????

i thought so. who gets the screws turned when oil prices are lower? I should have bough cvx when it was down 4% yesterday.
As c1ue said 3 days use for US, less than one for world daily use.

[Mega]

Re: For the Love of GOD!....We are pumping from the SPR ?????

FFS !
I want mother f*cking Oil to go to Mars!
Where is the $200 oil i was promised???
F*ckers!
Mike

[flintlock]

Re: For the Love of GOD!....We are pumping from the SPR ?????

Well Mike, when you put it that way they are bound to listen!

[thunderdownunder]

Re: For the Love of GOD!....We are pumping from the SPR ?????

Well my view is that 30 million barrels come from the US the rest from other member countries (2 million / day for 30 days)
- Someones getting paid for it (60 million x $90 = $5.4 billion). Would keep a large country running for a few weeks.
- it will mean a little boost to the economies of the World (short term and Transitory)
- equivalent to selling the family silver.
- will only crush oil stock prices
- does nothing to help anyone or anything for any length of time.
- smacks of desperation to get this constipated turd economy moving.
Enjoy your 20c/ gallon discount (while it lasts)

[Mega]

Re: For the Love of GOD!....We are pumping from the SPR ?????

Agreed
My guess is "They" need to keep oil under $130 a barrel........
My question is how long can they pump from the SPR till they used up say 50%?.............or is it possable that Obama will be able to pump till after election day next year?
Mike

[c1ue]

Re: For the Love of GOD!....We are pumping from the SPR ?????

As it turns out, the SPR publicity stunt may also wind up being a bankster subsidy...

http://thinkprogress.org/green/2011/...store-spr-oil/

To stem supply disruptions from Libya and to disrupt the grip of nonconsumer oil speculators, the U.S. Department of Energy announced the sale of 30 million barrels of crude as part of the International Energy Agency’s effort to release 60 million barrels into the global oil market. The sale of oil from the Strategic Petroleum Reserve, as well as the suggestion from the Obama administration that more sales could be announced in the future, has already lowered the price of crude. As the Baker Institute’s Amy Myers Jaffe has noted, the release sends a “signal that should keep rampant speculation at bay.” However, as Bloomberg reported last week, “some of the oil being released from the U.S. Strategic Petroleum Reserve to bring down prices may be held by traders for later sale rather than sent directly to refiners for processing into gasoline or other fuels.”

Some of the purchasers have claimed that they will immediately refine the SPR crude. But many banks and large oil speculators looking to purchase the oil may intend to simply hoard it:

Representatives of trading companies including JPMorgan Chase & Co., Morgan Stanley (MS), Hess Trading Company and Koch Supply & Trading LP joined Valero Energy Corp. (VLO) and Statoil ASA in questioning Energy Department officials June 28 about shipping options and requests for waivers of the Jones Act.

The Jones Act “restricts the shipment of goods between U.S. ports to American-flagged vessels.” Because most oil tankers are foreign-flagged ships, the traders looking to store in the oil offshore must request Jones Act waivers.

Argus Media reports that Koch Industries has already shown interest in leasing super tankers for storage of crude in the Gulf of Mexico. The Economist points out that the small rebound in oil prices have already provided an incentive for oil traders to store, rather than refine, the oil: “If a trader was able to purchase West Texas Intermediate—the oil held in America’s Strategic Petroleum Reserve (SPR)—at the spot price on June 24th, they would already be sitting on a tidy profit.”

In December 2008, when oil prices crashed from a record high to $33 a barrel, speculators with the capability to store massive quantities of crude oil bought in bulk and stored the oil for later sale. As Fortune magazine reported, the rush to store oil instead of refining it pushed prices for consumers back up. Now, the contango — a market situation when the spot price is much lower than the future price of oil — is less significant than back in 2008.

Nevertheless, its not clear what oil traders will do. In Europe and Japan, much of the oil released as part of the IEA effort was sent directly to industry. In the U.S., the release was entirely crude with less strings attached. “Our inventories are in good shape and our markets are well supplied here in the United States,” Rayola Dougher, an economic adviser with the American Petroleum Institute, the largest oil lobbying group, told Reuters. “It may be that our refiners are buying it to store up.”