| Author |
 Topic  |
|
|
starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
 Posted - 05/09/2008 : 17:26:38
|
There have been some arguments lately as to whether or not the government should sell-off some of its strategic reserve. The main philosophy being that such a move would offset gasoline price increases, thus offering temporary relief to the consumers. Others feel that they should at least stop adding to it so feverishly. One man argued on CNBC that the reserve was a Cold War relic, and that it should be completely tapped (has this guy ever heard of China?).
From what I understand, the reserves hold only enough to fuel the American MIC for a few months at best. My opinion would be that the US has probably been hoarding vast amounts (above and beyond any public knowledge) for many years, as I've read the Chinese have recently been doing. I believe that this would be a good thing for American security regardless of the pressures it may put on the markets.
|
|
|
Know Common Cents
Penny Pincher Member
195 Posts |
Posted - 05/09/2008 : 18:48:03
|
It's my understanding that the gov't adds to the SPR each and every day regardless of the price. Even if they decided that it was the right time to release X number of barrels, they could stop buying it for awhile, thus still creating more available crude on the market.
I also heard that most of the crude in the SPR is of the "sour" variety. That's the oil with the heavy sulphur content that's much more difficult to refine. Please correct me if I'm wrong on that. The sour crude is the only product available to the US from Hugo Chavez in Venezuela. The number of refineries that can handle that are very few. |
Here in Wisconsin, we have some of the highest property and gasoline taxes in the US. We're squeezed so much, I have to make my daughter wear penny boxes for shoes. At least she has an endless supply. |
 |
|
|
starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 05/09/2008 : 19:54:03
|
| There is no need to by large amounts of "sweet" oil. They don't simply store it in barrels that just sit there. The barrels have a poor shelf life. The sulfur-heavy oil is pumped into huge underground caverns that can be pumped out with salt-water displacement techniques. It would be a waste of money to buy larger amounts of "more pure" oil and then go and "dirty it up." Of course, there are also huge, high quality fuels warehoused for the military (as there should be), and everything in between. |
|
|
| |
Topic |
|
Strategic Oil Reserve
Forum Locked
