Should The U.S Increase It's Strategic Oil Reserves?

[C130]

with the oil glut worse than ever and predicted to last another year. where oil will hover around $40 dollars or drop to even $20 dollars a barrel.

China has used this reprieve in high oil to fill it's own SPR
China Is Hoarding the World's Oil - Bloomberg Business


this would be a prime opportunity to expand the Strategic Petroleum Reserves from 700 million barrels to 1 billion!!


300 million barrels at $40=$12 billion dollars
300 million barrels at $35=$10.5 billion dollars

quite a bargain compared to 300 million barrels for $100 which would be $30 billions dollars in the next distant future.

 

[Beast]

with the oil glut worse than ever and predicted to last another year. where oil will hover around $40 dollars or drop to as far $20 dollars a barrel.

China has used this reprieve in high oil to fill it's SPR
China Is Hoarding the World's Oil - Bloomberg Business


this would be a prime opportunity to expand the Strategic Petroleum Reserves from 700 million barrels to 1 billion!!


300 mill barrels at $40=$12 billion dollars
300 million barrels at $35=$10.5 billion dollars

quite a bargain compared to 300 million barrels for $100 which would be $30 billions dollars!!

US has shale reserve and all major powers are less and less reliance on fossil fuel for power. I will say this time the era of fossil fuel is truly going to be over. For electricity, we have nuclear, solar,hydro and wind power. Electric car especially bus are coming up very strongly.

The reserve are not necessary in future.

 

[Providence]

with the oil glut worse than ever and predicted to last another year. where oil will hover around $40 dollars or drop to even $20 dollars a barrel.

China has used this reprieve in high oil to fill it's own SPR
China Is Hoarding the World's Oil - Bloomberg Business


this would be a prime opportunity to expand the Strategic Petroleum Reserves from 700 million barrels to 1 billion!!


300 million barrels at $40=$12 billion dollars
300 million barrels at $35=$10.5 billion dollars

quite a bargain compared to 300 million barrels for $100 which would be $30 billions dollars in the next distant future.

We have already cut our OIL imports by 90%. Not sure why will we need to maintain a "reserve" per se although I am sure some reserves are maintained by every nation !

 

[Jai Bharat]

US has shale reserve and all major powers are less and less reliance on fossil fuel for power. I will say this time the era of fossil fuel is truly going to be over. For electricity, we have nuclear, solar,hydro and wind power. Electric car especially bus are coming up very strongly.

The reserve are not necessary in future.

Oil is still king in transportation. It might still be 2-3 decades before electric cars become the standard, who knows how long for ships, helicopters, and planes. Power stations still take too long to charge and battery technology is still unreliable in cold climates. Still no economical electric car that can match a similarly priced combustion one in range.

We have already cut our OIL imports by 90%. Not sure why will we need to maintain a "reserve" per se although I am sure some reserves are maintained by every nation !

Every country needs strategic reserves for a variety of reasons. The question is whether or not oil will drop any lower, or if it is better to replenish the reserves now.

 

[C130]

We have already cut our OIL imports by 90%. Not sure why will we need to maintain a "reserve" per se although I am sure some reserves are maintained by every nation !

tight oil isn't going to last, and oil is going to rebound in the next year

might as well buy all the cheap while you can.

it's also to bolster prices so they don't fall down to $20 dollars and knocking out some tight oil producers.

it's a waiting game. if we can wait the Sauds out another 12 months we win

 

[Providence]

tight oil isn't going to last, and oil is going to rebound in the next year

might as well buy all the cheap while you can.

it's also to bolster prices so they don't fall down to $20 dollars and knocking out some tight oil producers.

it's a waiting game. if we can wait the Sauds out another 12 months we win

The low prices are here to stay ! We will have iranian crude and venezuelan crude flowing like water in coming months !

 

[C130]

The low prices are here to stay ! We will have iranian crude and venezuelan crude flowing like water in coming months !

I don't believe that. with lower prices means lower investment right now and the near future!! this will catch up to demand soon.

oil's era isn't over just yet.

 

[Jai Bharat]

I don't believe that. with lower prices means lower investment right now and the near future!! this will catch up to demand soon.

oil's era isn't over just yet.

US Federal rates are practically zero right now. Obama is making sure that they will invest and outlast the Saudis. US production has remained strong and I don't see the Saudis reclaiming their crown of #1 oil producer in the world until oil gets replaced.

 

[Providence]

I don't believe that. with lower prices means lower investment right now and the near future!! this will catch up to demand soon.

oil's era isn't over just yet.

Not exactly true. You will have to look at the installed production capacity in the already producing countries which are quite above their current production levels. Also, this production capacity installations are quite asymmetrically distributed.

E.g. Iran wanting or not is going to install production capacity in a massive scale as long as sub $60 crude prices is the break points of each projects.

Similarly, the shale oil technology is spreading across eastern hemisphere in a big way who are crude starved but have huge shale deposits. They will install capacity either way to reduce their import bill.

So, Relax. In near and medium term, oil prices will stay low. Long term is anyone's guess !!

 

[jammersat]

the US does have a strategic oil reserve , another arab embargo ain't gonna cripple the US government rather the american people