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from the that-worked-out-just-fine-for-the-helium-reserves dept.
President Donald Trump's proposal to sell half of the U.S. strategic oil reserve highlights a decline in the biggest oil user's reliance on imports - and a weaning off OPEC crude - as its domestic production soars.
The U.S. Strategic Petroleum Reserve (SPR) SPR-STK-T-EIA, the world's largest, holds about 688 million barrels of crude in heavily guarded underground caverns in Louisiana and Texas. Congress created it in 1975 after the Arab oil embargo caused fears of long-term spikes in motor fuel prices that would harm the U.S. economy.
The White House budget, delivered to Congress on Tuesday, proposes to start selling SPR oil in fiscal 2018, which begins on Oct. 1. Under the proposal, the sales would generate $500 million in the first year and gradually rise over the following years. A release of half the SPR over 10 years equals about 95,000 barrels per day (bpd), or 1 percent of current U.S. output.
Source: Reuters
(Score: 2) by JoeMerchant on Thursday May 25 2017, @06:59PM
And the question becomes: do we need it or not?
Should the US sell this oil now, while oil is still cheap and readily available?
It would seem like a small win today, as compared to having a bigger win in the not so distant future when oil shoots up to 10x current prices due to under-supply / over-demand.
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