Our Strategic Petroleum Reserve is Being Sold to Asia

Discussion in 'Business, Investing & Finance' started by GR8 2B, Nov 19, 2021.

  1. GR8 2B

    GR8 2B A Florida Gator
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    Alert — Biden is selling our Strategic Petroleum Reserve to Asia…

    It’s no secret that Americans are paying record prices at the gas pumps. Rapidly ascending prices also affect the cost of all the goods and services that are an integral part of the American economy. Farmers, manufacturers, delivery companies, repair people…you name it: They’re paying more to do their jobs and they’re passing those costs to consumers. So why now, of all times, is the Biden administration selling off America’s Strategic Petroleum Reserve (“SPR”) to Asia.

    As the name suggests, the SPR is America’s emergency backup supply of oil. The reason we have it is because of the energy crisis in the early 1970s. According to Wikipedia, which is probably accurate about this, “The United States started the petroleum reserve in 1975 after oil supplies were interrupted during the 1973-1974 oil embargo, to mitigate future supply disruptions.”

    Fast forward to 2021. Upon entering the Oval Office, one of the first things Biden did was to shut down the Keystone XL pipeline. Henceforth, rather than flowing safely through a pipeline, Canadian oil will come the expensive way, over land, whether in trucks (which are in short supply) or on trains.

    At the same time, Biden halted new oil, gas, and coal leases on federal lands, something that’s being fought in the courts. As long as the suit continues, though, no sane business would start to drill.

    Biden’s also on the verge of ending all new oil and gas leases around major Native American cultural sites, which will shut down massive amounts of exploration and drilling in New Mexico. And following initial denials, the administration admitted that it plans to close a major Michigan pipeline.

    Biden is selling massive amounts of SPR oil…to Asia!

    About 1.6 million barrels of crude from the U.S. Strategic Petroleum Reserve — a monthly record — was shipped out in October, according to data from market intelligence firm Kpler.

    All three supertankers went to Asia.

    “Given the ongoing pace of the current SPR release — 12 million barrels in the last two months and the biggest weekly release so far last week at 3.1 million barrels — it’s fair to assume more SPR barrels are going to leave U.S. shores in the weeks ahead,” said Matt Smith, an oil analyst at Kpler.

    As far as I can tell, the administration has not explained why, with Americans struggling to keep up with rising fuel prices, it’s shipping our SPR to Asia. During the virtual meeting between Biden and Xi Jinping, the two men allegedly discussed releasing oil from both countries’ petroleum reserves but made no mention of the sales to Asia that already took place.
     
  2. CGgater

    CGgater Gainesville Native
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    Sounds like some folks in dc are intentionally trying to destroy the economy. This can’t possibly be an “oops, we didn’t know that would cause a problem…” It’s an established policy based on lessons learned, and they want to remove that safety net well after gas prices have risen to uncomfortable levels.

    Just as I get to begin enjoying my military retirement, the clowns on the left have begun a hostile takeover.
     
    • FireFoley

      FireFoley Senior Member
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    • CDGator

      CDGator Well-Known Member
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      Tell me you are trying to destroy the economy without telling me you are trying to destroy the economy.
       
    • CGgater

      CGgater Gainesville Native
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    • FireFoley

      FireFoley Senior Member
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      After the week that crude oil futures had, I would say we should see a drop just after T'giving. Regarding gas prices, any release of the SPR's is nothing but a talking point. It seldom, if ever has any lasting effect on final gas prices. it actually takes months to get to the refiners, etc.
       
    • CGgater

      CGgater Gainesville Native
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      Thanks, but I'm curious how quickly the gulf leases you mentioned will impact oil and gas. I'm assuming the increase in gulf drilling will lower prices.

      BTW, if the auction put money in jo... errrr, hunter's pockets, then I don't see the irony. Has joe ever cared about the environment if there was no benefit to joe?
       
      #7 CGgater, Nov 20, 2021
      Last edited: Nov 20, 2021
    • FireFoley

      FireFoley Senior Member
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      Probably not in my lifetime
       
    • CGgater

      CGgater Gainesville Native
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      I was hoping long term forecasts of future domestic production would ease concerns, but I don’t understand much about how this stuff works…
       

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