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Page added on March 15, 2015
US Energy Department to Buy Oil for Strategic Reserves
The Energy Department on Friday announced it was buying up to five million barrels of oil for the U.S. strategic petroleum reserve, a federally owned stockpile of oil that is available in case of an emergency or sudden disruption in oil supply. In March 2014, the Energy Department announced it was selling five million barrels of sour crude oil in what the government described then as a “test sale.” Friday’s announcement to buy back that amount of oil is required by law within one year, according to Energy Department spokeswoman Lindsey Geisler. The Energy Department will be able to buy five million barrels of light, sweet oil at roughly half the price they earned for the same amount of sour crude last year. The benchmark U.S. oil price fell 4.7% Friday to $44.84 a barrel on the New York Mercantile Exchange. The price for light, sweet oil averaged right around $100 a barrel in March 2014. Sour crude typically costs less than light, sweet crude because it is considered lower-quality by refiners.
5 Comments on "US Energy Department to Buy Oil for Strategic Reserves"
Davy on Sun, 15th Mar 2015 8:26 am
Nice excuse to buy up that black stinky shale oil goo Short so effectivty describes as only good for feedstock. A goo that is running out of storage space.
That kills two birds with one stone by supporting the US oil patch and making the public believe we are increasing security.
That as just a fun wild ass thought and I have no idea if it is true or something that can be accomplished.
Plantagenet on Sun, 15th Mar 2015 10:26 am
The Obama administration is required by law to buy oil to replace the oil they sold prior to the 2014 election. Five million bbls is a drop in the bucket in this oil glut— it won’t have a big effect
BobInget on Sun, 15th Mar 2015 12:04 pm
It’s not a law HRH, just a rule. In fact SPR in past years held far more then today’s stocks.
http://energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reserve/spr-quick-facts-and-faqs
HRH is right, five million won’t get us far
in Oil Shortage that throws the nation into
another of our greatest depressions.
Five million barrels fills US NEEDS for six hours, twelve minutes.
Bob Owens on Mon, 16th Mar 2015 5:38 pm
The SPR is designed for Emergencies! It should be completely filled and then reserved for that purpose. They should buy more. It is cheap now and it helps us be prepared for the future. Let’s not forget the gas problems encountered in NJ and NY when hurricane Sandy came ashore. Having oil in storage that we could convert to gas in such situations will be useful in the future.
Davy on Mon, 16th Mar 2015 7:39 pm
Bob, if you read what Hills Group says about oil with the ETP analysis then that oil will be getting cheaper not more expensive at least on average over time.
I am with you though a liquid fuel crisis could bring this country and the world to their knees in as little as two weeks. We should have more than a SPR. We should have a rationing program up and running and ready to go immediately. When, not if, a liquid crisis hits time will be of the essence.