CNN: "The DNC has filed a complaint against the assault on one of their dedicated voting bases. This afternoon Nancy Pelosi stated, "Except when we need them for elections, the dead should be allowed to rest in peace, not be attacked by life supremacists!"
I am pretty sure people are confusing this with gasoline which will polymerize over time. Oil is refined and you can crack it to make more lights and oil from different areas has different composition.
well you have to consider that in a true emergency situation where we needed to tap reserves, consumer consumption of that stock would be minimal. even right now im sure we are waaay down from 20 million barrels a day. i think its fair to say that amount of oil would last a good deal longer than 48 days.
It's not like we would run out in 48 days in case of an emergency. The US produces 13M barrels per day so we would only have to make up for that deficit. Plus Canada produces 5M barrels per day and exports half of that to the US. I don't care what kind of emergency we're in there is no way we are letting those cucks cut that off.
However I'm all for expanding our reserves, you can never have too much oil, especially when it's free.
The "free" oil is only for very short term contracts that are expiring this month (and you have to take delivery of the oil if you are holding the contract).
Longer term contracts are closer to normal, but still historically low.
While you would think crude oil stores for millions of years, the fact is that once you pull it from the ground, cude oil has a shelf life at the refinery storage of about 3 years. The stuff that gets stored in salt caverns lasts indefinitely, but apparently stuff stored in tanks gets attacked by bacteria and starts to breakdown to the point where it's much less economical to refine it.
Those guys forward sell their production as a hedge against just this kind of thing. The holder of the futures contract will be stuck without a chair when the music stops if they can't store it.
Wait five minutes. ETFs that use futures - like USO - are being driven to 0 by front running, as others know they have to roll to later months and Cushing physical storage evaporates, so spreads cannot be arbitraged. USO holds something like 25% of all long June positions.
The number of people trying to pile into this thing exploded by a factor of 5 right as the bottom was dropping out of the futures market. They were all bottom fishing and they're getting absolutely slaughtered.
We just need to get it open and get the cars on the road and airplanes in the air. The demand will return and probably higher than it was because of summer trips and recreational activity.
There were plans to expand the SPR to 1 billion barrels back during the Bush administration. But, Congress defunded it.
Some of the opposition was environmental. The salt caverns are mined by pumping in water and pumping out the brine. But, the fresh water has to come from a river (on the order of millions of gallons per day) and pumped into the Gulf via a pipeline.
The US should buy up every barrel it can buy, build storage rapidly to store now, and sell the oil later to turn a profit. That keeps the domestic industry afloat, and helps put a tiny dent in the national deficit for one fiscal year
Do we currently have the storage space for that? By my admittedly limited understanding of the current situation, storage is one of the problems that's exacerbating the issue for the oil companies.
There's a huge cost to closing and reopening a well and sometimes you can't even reopen them. Save our wells, save our oil industry. No more going back to relying on OPEC.
There's only so much storage capacity. Oil has a shelf life of about 3 years in refineries. Longer if stored in salt caverns.
The longer Trump is in office the more Salt will be produced....so we're fine with storage :)
^did the math
CNN: "The DNC has filed a complaint against the assault on one of their dedicated voting bases. This afternoon Nancy Pelosi stated, "Except when we need them for elections, the dead should be allowed to rest in peace, not be attacked by life supremacists!"
NEY SIR! YOU'VE DONE NO SUCH THING!
HARUMPH!!!
LOL gold
That's how I'll refer to Blue states from now on.
Bugmen
SO sweet + spicy, imma have it for lunch...
hahahahahaha
Why not just FIFO the inventory then?
So crude oil can sit in the ground for 300 million years, but as soon as we pump it out it expires in three?
yes. there's a lot of volatile hydrocarbons that react to light, oxygen, etc and can degrade once exposed.
*volatility = value
Utter nonsense
username checks out, YUGELY
just reporting what I read about it.
I am pretty sure people are confusing this with gasoline which will polymerize over time. Oil is refined and you can crack it to make more lights and oil from different areas has different composition.
(There's a rumor that oil is actually created by the heat and pressure in the earth's crust and it bubbles up to near the surface.)
abiogeneic petroleum origin, if someone wants to look it up
Selling it hurts the oil industry, but maybe. More like reserve it for emergencies and war time situations.
I'm sorry but nobody here knows any numbers.
Why not 5 gorillion??
I mean, what damn TV channel DO YOU WATCH???
Gorillas are on my screen, all day!!
I'm sorry but was actually meant sarcastic.
20.46 million barrels ~ 5 gorrilion, I guess 😁
1 billion = 250 gorrilion ish barrels of groil.
How do you convert that to shitloads? Or metric shittons?
You take any number, and make something up, just like cnn does!
well you have to consider that in a true emergency situation where we needed to tap reserves, consumer consumption of that stock would be minimal. even right now im sure we are waaay down from 20 million barrels a day. i think its fair to say that amount of oil would last a good deal longer than 48 days.
It's not like we would run out in 48 days in case of an emergency. The US produces 13M barrels per day so we would only have to make up for that deficit. Plus Canada produces 5M barrels per day and exports half of that to the US. I don't care what kind of emergency we're in there is no way we are letting those cucks cut that off.
However I'm all for expanding our reserves, you can never have too much oil, especially when it's free.
Ha, this Canadian "cuck" says come and take it, bitches.
Don't worry, we will.
You'll have to fight US Big Oil that has been working to keep Canadian oil off the market for decades. We'd love to sell that oil.
Why should you care? Your dog sleds don't run on oil. 😁
Also we can't let the Chi-coms to buy all the oil.
Especially when they are paying you to take the oil
This is big. The last I heard, Democrats were trying to stop this move. Sounds like they failed.
They stopped it in the last recovery package when oil was at $12-15/bbl.
It will be harder for them to argue against essentially free oil.
The "free" oil is only for very short term contracts that are expiring this month (and you have to take delivery of the oil if you are holding the contract).
Longer term contracts are closer to normal, but still historically low.
This is true, but we have capacity in the reserve we can fill now, for the price of moving the oil in.
Expanding the reserve will happen later, on long term contracts.
We do, but it's not a lot more. Here's the current inventory, as of March:
https://www.spr.doe.gov/dir/dir.html
The capacity is currently 797 million barrels.
Trump announced yesterday that the SPR is offering this excess storage capacity, even without purchasing the oil.
Great. That oil will be worth alot more in 3 years when the ruskies and saudis come to their senses
While you would think crude oil stores for millions of years, the fact is that once you pull it from the ground, cude oil has a shelf life at the refinery storage of about 3 years. The stuff that gets stored in salt caverns lasts indefinitely, but apparently stuff stored in tanks gets attacked by bacteria and starts to breakdown to the point where it's much less economical to refine it.
Well the producers can choose. Pay 40 per barrel or you get to donate it for 0. Still a 40 cost saver.
Those guys forward sell their production as a hedge against just this kind of thing. The holder of the futures contract will be stuck without a chair when the music stops if they can't store it.
They are in default and they lose everything. They can have their assets seized to cover the shortfall, including the negative amounts.
Um, today June crashed by half, too. Try to keep up.
Stop being an ass.
Are June contracts negative?
Wait five minutes. ETFs that use futures - like USO - are being driven to 0 by front running, as others know they have to roll to later months and Cushing physical storage evaporates, so spreads cannot be arbitraged. USO holds something like 25% of all long June positions.
The number of people trying to pile into this thing exploded by a factor of 5 right as the bottom was dropping out of the futures market. They were all bottom fishing and they're getting absolutely slaughtered.
Thanks for the context. TDS has so unbalanced their minds, I wouldn't be surprised if they make some effort to stop it even now.
She'd be paying Iran and Saudi reparations for the racist low oil prices.
Many of us would be dead.
And the best part? The media would be completely sympathetic because of muh furst wahman President.
No matter your politics, it's just plain stupid not to top off the reserve when prices are historically cheap
Trump already topped it off last month, this is expanding our SPR by a couple hundred million barrels. #KAG
Yup, this is a smart move all around.
Omg, masterful move! Get us some more of that cheapo oil!
This should offset the demand until economic activity resumes in the weeks ahead.
BUY LOW..
We just need to get it open and get the cars on the road and airplanes in the air. The demand will return and probably higher than it was because of summer trips and recreational activity.
And imagine the offers people will be making to get business going
The libs tried to make this the downfall of trump, but it's going to be the complete vindication of the fact that it was a trump economy
Give it for free to the airlines! Rather that then bail them out with cash. Plus maybe i could finally travel if free fuel dropped the cost.
Im seriously considering writing my senator.
There were plans to expand the SPR to 1 billion barrels back during the Bush administration. But, Congress defunded it.
Some of the opposition was environmental. The salt caverns are mined by pumping in water and pumping out the brine. But, the fresh water has to come from a river (on the order of millions of gallons per day) and pumped into the Gulf via a pipeline.
The issue was the amount of water taken from the river. It could severely reduce the flow of freshwater downstream from the intake.
Buy MORE
Buy Buy Buy~!!
Chanel is an angel.
Can't call me a simp cause she aint mediocre 😎
Also, fuck yeah! 'Merica!!
Sweet! Great news.
brilliant.
Buy it cheap and stack it deep.
Its a great opportunity with the price as it is
Will we be banning imports? We should be buying our own oil.
Assuming recovery demands slightly less usage this should get us going... buy US oil only! Let the Saudis drink their own crude.
Glug glug glug, fill er up
It’s basically free.
It's just the cost of transportation and storage, but that can't be too much.
Lemon out of lemonade. Suck it you shot eating commies. Get fucked
They should hurry up and lock in the negative contract prices so that we can charge money for storage.
The US should buy up every barrel it can buy, build storage rapidly to store now, and sell the oil later to turn a profit. That keeps the domestic industry afloat, and helps put a tiny dent in the national deficit for one fiscal year
I sure as heck hope we're filling every US Navy ship to the brim right now.
'Ceptin maybe the nuclear ones. 'Cause that would be awkward.
Do we currently have the storage space for that? By my admittedly limited understanding of the current situation, storage is one of the problems that's exacerbating the issue for the oil companies.
Buy low!
Expand it! Low price, great deal.
There's a huge cost to closing and reopening a well and sometimes you can't even reopen them. Save our wells, save our oil industry. No more going back to relying on OPEC.
KAG
OANN about to get all the real news scoops from now on. The syph sores in the other chairs are about to get really salty.
Used shuttered shopping malls for storage. Plenty of places to store it.
Oh heck yeah, and at bargain basement prices.
I love this POTUS.
‘Sup, OPEC. 👋🏻
That’s yuge. We currently have 77 Million
Good deal at -$35 per barrel.
Someone needs to meme a Ms. MAGA 2020 sash on this goddess of journalism.
Are we getting paid to store oil?