Biden screws up yet again. Releasing oil from strategic petroleum reserve (activist, Clinton)
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1. Open up construction on the pipeline he ordered to be stopped
2. Open the pipeline he ordered shut down
3. Remove restrictions to drilling and fracking be implemented at the start of his time in office.
Doing those three things would lower gas prices for USA in the long run instead of a temporary bandaid approach. But his handlers won’t allow him to do that.
1. Open up construction on the pipeline he ordered to be stopped
2. Open the pipeline he ordered shut down
3. Remove restrictions to drilling and fracking be implemented at the start of his time in office.
Doing those three things would lower gas prices for USA in the long run instead of a temporary bandaid approach. But his handlers won’t allow him to do that.
A short term band aid and another screw up from the most incompetent administation ever. This reserve is supposed to be there for times of war or severe supply disruption. It's not there so leftist administrations can try to bring down prices due to their own mistakes.
Everyone here reacted without getting all the facts. 50 million barrels is barely a dent in the country’s current reserve supply of 605 million (total capacity is 727 million). Given the short-term domestic oil production issues, which haven’t fully recovered since the start of the pandemic (currently producing 11 million barrels/day vs. 12.8 million pre-pandemic) this move makes a lot more sense. Once domestic production is fully restored to pre-pandemic levels prices will likely be lower and we can add back to our reserves.
Now there is the possibility that OPEC responds by adding to their reserves which would restrict global supply, but it would be costly for them to do so since oil is currently selling at a high price. Meanwhile this means that more of the oil on the market being sold is US oil as opposed to Saudi oil. The U.S. comes out a winner in this scenario.
At the end of the day this decision moves the chains on addressing our short-term supply bottlenecks but probably isn’t that impactful in the grand scheme of things.
Bottom line - everybody calm down.
Last edited by Cruz Azul Guy; 11-23-2021 at 10:01 AM..
"OPEC+ has issued a grave warning to Japan, the United States, China, India, and South Korea: unleash millions of barrels of oil from your emergency stockpiles, and we are likely to respond.
That response, although OPEC+ failed to mention specific figures, would likely be changing their plans to ramp up production more slowly to compensate for the extra barrels released." https://www.oilprice.com/Energy/Ener...erves.amp.html
Biden still holds the big ace: taking sanctions off of Iranian oil. Saudi want to go there? I think not.
Worst thing is, the crude oil that Biden is releasing is sour crude that refiners don't want. It is high in sulfur and requires more natural gas to refine, which is extremely expensive right now, and will remain so all winter long.
Another epic fail in the making for team dementia Joe. Why do they even bother waking him up in the morning?
Quote:
Originally Posted by Woodshampoo
I thought it was the oil companies fault for the high gas prices?
When this fails, they will pivot back to that excuse again. Because when stupid ideas produce stupid results, it's always someone elses fault...
So if Presidents are to be blamed for rising fuel prices, will they be praised for decreasing ones?
Because, inevitably, prices will go down, present action notwithstanding. I look forward to all the threads and posts here graciously thanking the President when that happens.
No no no, this is for emergencies. Biden is dangerous.
Was it dangerous when previous Presidents leveraged the SPR for price relief?
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