Tapping the Strategic Reserve
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The Biden administration has abruptly canceled a plan announced last month to purchase up to three million barrels of oil as part of its effort to refill the Strategic Petroleum Reserve (SPR).
The SPR — which Congress established for emergency situations — currently contains 363.6 million barrels of oil, a 43% decline from January 2021 when President Biden took office, federal data shows. Biden began depleting the reserve in late 2021 to combat high fuel prices.
The Department of Energy said that while it remains committed to refilling the SPR, it would pull back its most recent solicitation for oil amid increasing prices. On March 14, DOE's Office of Petroleum Reserves announced the solicitation for three million barrels of oil to be delivered in August and September to its Bayou Choctaw site in Louisiana, one of four major SPR storage facilities.
"Keeping the taxpayer’s interest at the forefront, we will not award for the Bayou Choctaw SPR site in August and September, and will continue to solicit available capacity as market conditions allow," a DOE spokesperson said. "As always, we monitor market dynamics to remain nimble and innovative in our successful replenishment approach to protect this critical national security asset."
The spokesperson added that the administration has already taken steps to replenish the emergency reserve, the largest of its kind in the world, and deliver "a good deal for American taxpayers."
My understanding is that the SPR was "released" in an attempt to lower the price of gasoline. Right?
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“Little by little I am learning the art of being quite content by doing very little slowly” ~ Lionel Hardcastle
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@Renauda said in Tapping the Strategic Reserve:
Probably a prudent decision.
What was the price of oil when they decided to tap the SPR?
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Average price in 2022 was $95 / bbl.
The announcement Thursday brings the total amount of oil the U.S. has purchased for the inventories since last year to 32.3 MMbbl. The Energy Department has paid an average price of under $77 per bbl, below the average price of $95 it sold for in 2022, the agency said in a statement.
The Energy Department “will continue to evaluate market conditions and competitive bids to ensure our SPR continues to meet its mission when called upon,” the agency said.
The Energy Department said it spent nearly $226 million on the purchase — that would imply an average price of about $81 per bbl, in excess of a previously stated target of purchasing oil at $79 or lower to refill the reserve.
Slick media likes to make this into a big deal implying national security issues. Well, to be blunt, it’s not.
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Always remember, Operation Valkyrie was an act of sedition.
Warning: I post things that interest me. Read and comment at your own discretion. -
Yes, Jon and TG about 23 days ago:
https://nodebb.the-new-coffee-room.club/topic/26067/bidenomics-at-work/176?_=1712187184125
February 2024 stats:
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Maybe he will also releases barrels from the reserve just prior to election day.
I look forward to the day when sitting presidents seeking a second term, distribute checks on November 1st. Because October probably had something bad happen in it, I just bet something bad happened in October. I think the right thing to do is to distribute checks.
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https://nodebb.the-new-coffee-room.club/topic/31454/strategic-reserve-again/5?_=1716972192066
Had to release the 1MM barrels. That section of the strategic reserve is closing.
