I did too. Doesn't it seem the President would have the authority to do this? Seems Mnuchin would be able to find a few billion in change in the couch cushions to get this done.
iirc, Dems blocked it, so GEOTUSvsg let the US oil companies ‘store’ their oil in the strategic reserve. Companies still own it, they’re getting free storage, and if Dems stop blocking/lose power the we can buy what’s already stored. This is a win-win and creative solution. Oil is so cheap it’s been held in ships going nowhere, just sitting at sea. An environmental disaster waiting to happen.
I haven't been able to find anything definitive either way. I heard that and cheered it, but later read it didn't happen for some reason in the Senate.
I've been looking for further proof of Kevin's post, but I haven't been able to really find anything. In Trump's briefing yesterday, he did say he had some "big news" coming. Could this be it?
In the second or third task force briefing he said he was going to do this. (And my wife turned to me and said "Hey, you said he should do that. You're a genius!" Which is why I remember it :P )
What Trump has said recently is that he is allowing oil producers to store their oil in the governments tanks since storage after pumping oil is a major issue.
The Government has around 80-90 million barrel capacity remaining.
This isn’t quite accurate. If I recall the Saudis rely heavily on US support in the region and this was a move to financially hurt Iran and Russia.
This is also from a few weeks ago when it was reported that the Saudis had alerted the US prior to this move.
As bad as the Saudis are, they do rely heavily on the US, and wouldn’t screw with us too much. The Saudis are in a never ending war with Iran and it is much more likely an effort to hurt Iran’s economy during their on going crisis.
And strategic reserve is only 75m barrels and the excess supply is estimated at 1-2B. Trump said today during the press conference that there is no room and they are storing the oil on ships. Buy TNK
It's Time to mine some salt...Literally like we need to mine out Salt Caverns to store more Free Oil.. If you ever wonder about the Author of existence now is the time to pause and refelct... God moves and the Univerce bobs about in his passing like a dingy in a Typhoon.
They were behind 9/11 as well. Maybe one day we can finally tell all these fake "allies" to go fuck themselves. Saudis are first in line for that. Their 9th century Wahabist Islam can fuck right right off too.
Trump wanted to do what this posts describes, however he needed congress to allocate the money. They refused, so as an alternative, he is allowing our oil producers to at least store their oil in the reserves until later.
I would have preferred the first approach, because it would have made us money when we went to sell the oil at a later date for a higher price.
I can tell you from first-hand knowledge, the US land oil business is completely fucked. Not sure about the validity of Kevin Sorbo's post (I have no reason to doubt it) but it won't matter. This is the worst event to ever happen to Texas oil, objectively.
For what it's worth, I'm not a doomer on the virus, but I am a serious doomer on the economy.
So, it’s my understanding that the Saudi/Russia thing was going to be extremely painful - prices were just getting back to where they needed to be for oil/oil service companies focused on land to stabilize, but most could have hunkered down and survived. That is the supply issue.
The WuFlu is causing less to consumption (anything, including gas - so there is a trickle down effect. Energy is the cornerstone of the economy.) That’s the demand issue. We’re getting hammered on both sides, whereas most are only experiencing the severe demand issue. Lower energy prices are actually helpful to everyone but oil/gas related companies.
No one can compete with Saudi oil. It is the highest quality ("light sweet crude") and has the lowest extraction costs. Their break even point is somewhere around $4 bbl. When everyone else runs out of oil, SA will still be pumping.
1,000s of small guys taking risks and loans holding the bet that much higher prices were here to stay.
It isn't that -can't- compete necessarily, but the wild swings mean they're eating the risk every second it's below whatever price their person project can handle. They get the choice of screwing their peeps, or screwing their company .. and their peeps.
I read the senate Dems blocked this (needed 60) but can't find a citation
I did too. Doesn't it seem the President would have the authority to do this? Seems Mnuchin would be able to find a few billion in change in the couch cushions to get this done.
I would have thought so. Seems pretty clearly in the National Defense role, where the President is clearly free to do much
iirc, Dems blocked it, so GEOTUSvsg let the US oil companies ‘store’ their oil in the strategic reserve. Companies still own it, they’re getting free storage, and if Dems stop blocking/lose power the we can buy what’s already stored. This is a win-win and creative solution. Oil is so cheap it’s been held in ships going nowhere, just sitting at sea. An environmental disaster waiting to happen.
That would be great
You're not wishing for an environmental disaster...right?
I was referring to the first part of his post.
I must have skipped the last sentence! :)
Trump mentioned this during one of his coronavirus briefings.
He said he was able to fill our reserves. Doesn’t answer your question directly but it seems he did accomplish it.
I haven't been able to find anything definitive either way. I heard that and cheered it, but later read it didn't happen for some reason in the Senate.
I seem to remember it being one of the things they were pushing for in the senate stimulus package.
I've been looking for further proof of Kevin's post, but I haven't been able to really find anything. In Trump's briefing yesterday, he did say he had some "big news" coming. Could this be it?
In the second or third task force briefing he said he was going to do this. (And my wife turned to me and said "Hey, you said he should do that. You're a genius!" Which is why I remember it :P )
https://www.bloomberg.com/news/articles/2020-03-13/trump-says-going-to-buy-large-quantities-of-oil-for-reserve-k7qlrbck
He wasn’t there for most of it because he was on calls to Putin and Saudi Arabia.
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCSSTUS1&f=W
Its not accurate.
What Trump has said recently is that he is allowing oil producers to store their oil in the governments tanks since storage after pumping oil is a major issue.
The Government has around 80-90 million barrel capacity remaining.
The US has averaged around 12 million barrels of petroleum production per day. https://www.eia.gov/petroleum/production/
This isn’t quite accurate. If I recall the Saudis rely heavily on US support in the region and this was a move to financially hurt Iran and Russia.
This is also from a few weeks ago when it was reported that the Saudis had alerted the US prior to this move.
As bad as the Saudis are, they do rely heavily on the US, and wouldn’t screw with us too much. The Saudis are in a never ending war with Iran and it is much more likely an effort to hurt Iran’s economy during their on going crisis.
And strategic reserve is only 75m barrels and the excess supply is estimated at 1-2B. Trump said today during the press conference that there is no room and they are storing the oil on ships. Buy TNK
The Strategic Petroleum Reserve can hold around 710-720 million barrels.
As of last week, its filled to 634,967,000 barrels
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCSSTUS1&f=W
It's Time to mine some salt...Literally like we need to mine out Salt Caverns to store more Free Oil.. If you ever wonder about the Author of existence now is the time to pause and refelct... God moves and the Univerce bobs about in his passing like a dingy in a Typhoon.
Buy when there is blood in the streets
They didn't do that to punish the US. They did it to punish Iran. And, frankly, the US was probably in on it.
this happened a few weeks ago, maybe more...
HERCULES HERCULES HERCULES
Based Hercules with better reporting than most media houses.
They were behind 9/11 as well. Maybe one day we can finally tell all these fake "allies" to go fuck themselves. Saudis are first in line for that. Their 9th century Wahabist Islam can fuck right right off too.
Big if true!
I can't take all this winning.
So the saudis sold it for $10-$50 per barrel? +/- $20 makes no sense. Why are people so dumb?!
But Bush kept filling up the Strategic Reservers during the Iraq war no matter how high the price went.
Upvote this. Get it moved to the top of the list. This is very important news.
This is false.
Trump wanted to do what this posts describes, however he needed congress to allocate the money. They refused, so as an alternative, he is allowing our oil producers to at least store their oil in the reserves until later.
I would have preferred the first approach, because it would have made us money when we went to sell the oil at a later date for a higher price.
Based Captain Dylan Hunt
Fuck yeah.
This is a business move that could only come from a business president.
I can tell you from first-hand knowledge, the US land oil business is completely fucked. Not sure about the validity of Kevin Sorbo's post (I have no reason to doubt it) but it won't matter. This is the worst event to ever happen to Texas oil, objectively.
For what it's worth, I'm not a doomer on the virus, but I am a serious doomer on the economy.
So, it’s my understanding that the Saudi/Russia thing was going to be extremely painful - prices were just getting back to where they needed to be for oil/oil service companies focused on land to stabilize, but most could have hunkered down and survived. That is the supply issue.
The WuFlu is causing less to consumption (anything, including gas - so there is a trickle down effect. Energy is the cornerstone of the economy.) That’s the demand issue. We’re getting hammered on both sides, whereas most are only experiencing the severe demand issue. Lower energy prices are actually helpful to everyone but oil/gas related companies.
No one can compete with Saudi oil. It is the highest quality ("light sweet crude") and has the lowest extraction costs. Their break even point is somewhere around $4 bbl. When everyone else runs out of oil, SA will still be pumping.
1,000s of small guys taking risks and loans holding the bet that much higher prices were here to stay. It isn't that -can't- compete necessarily, but the wild swings mean they're eating the risk every second it's below whatever price their person project can handle. They get the choice of screwing their peeps, or screwing their company .. and their peeps.
First_Time?.jpg
Smiles in Albertan
Lol...yeah...I’ve worked in offshore before but never land. As Alberta goes, Canada goes as our head counsel says. Sorry about your CAD, friend.