Talk Trump may tap strategic oil reserves raises questions

The Bryan Mound storage facility in Brazoria County, Texas, one of four Strategic Petroleum Reserve (SPR) sites in the US
The Bryan Mound storage facility in Brazoria County, Texas, one of four Strategic Petroleum Reserve (SPR) sites in the US

Reports that President Donald Trump could soon tap the Strategic Petroleum Reserve in a bid to lower gasoline prices have raised concerns the emergency stockpile is being compromised for political purposes.

Constructed in the wake of the 1970s oil shocks, the SPR is spread across four sites in Texas and Louisiana in the south of the United States. It currently holds 660 million barrels of oil in salt caverns, meant to protect against a sudden disruption in oil supply.

The Trump administration is weighing a release of between five and 30 million barrels of oil, according to Bloomberg, which cited unnamed sources.

The move comes ahead of midterm congressional elections in November as pressure mounts over at the pump, which are higher than they were a year ago due to rising crude .

While the increase in is partly due to recent supply disruptions in Libya and Canada, commodities analysts point to various factors, including Trump's move to renew sanctions on major oil exporter Iran.

But just the rumor that more oil might be hitting the market sent US oil prices down by more than four percent or nearly $3 a on Monday.

Analysts say supply conditions are not abnormally tight, and some are skeptical that a release of crude onto the market is warranted.

"In the face of disruptions that threaten world production, it makes sense to use these reserves as a matter of urgency," said Phil Flynn, an analyst at Price Futures Group.

"My fear is that the United States can begin to use them as a weapon to manipulate prices and that this weapon will become inefficient in the event of a real crisis in the market."

Others point to evidence that supply pressures already are being alleviated, notably by the Organization of the Petroleum Exporting Countries, which agreed last month to boost output.

Gasoline prices have pulled back from their peak this year after rising to around $3 a gallon in May. The national average now stands at $2.86 a gallon, according to AAA.

"The gas price hike that has recently hit American motorists and against which Donald Trump is fighting before the November mid-term elections is partially resolved as these prices have already fallen," said Andrew Lebow, an associate at Commodity Research Group.

The International Energy Agency, a multilateral organization representing governments of oil-importing nations, said there have been no talks among members of coordinating an emergency .

Big oil releases rare

Major releases by the SPR have been rare and have previously been implemented in coordination with the IEA and other member countries.

In 1991, the US reserve released 17 million barrels onto markets during the Desert Storm military operation led by the US after Iraq invaded Kuwait.

The stockpile also pumped out 11 million barrels of oil following Hurricane Katrina in 2005 and another 30 million barrels in 2011 after the overthrow of the Libyan government.

Other releases have been smaller, such as last summer, when the SPR released five million barrels following Hurricane Harvey.

The current SPR level is below its peak as politicians eye revenues from shrinking it and selling the oil. That may be a less perilous course given rising US production from the shale energy boom.

A budget plan presented by the Trump administration envisions shrinking the SPR to 410 million barrels by 2027. That would allow the Energy Department to close two of four storage facilities on Gulf Coast.


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Jul 20, 2018
Reports that President Donald Trump could soon tap the Strategic Petroleum Reserve

The guy is trying to weaken the US every way he can. Putin really must have him by the balls. And with the upcoming next visit he's obviously decided to keep his puppy on a very short leash.

Jul 20, 2018
So what other purpose is there to release oil from the reserves? Every release was done for political purposes. Why did Obama release reserves after Benghazi if not for political purposes? Those who think this will help Trump and the country; thus, are opposed (such as the author) should either advocate to eliminate the reserve (Trump's budget plan suggests to reduce it by half) or to change the law regarding when reserves can be released. Just claiming it's being done for political purposes is a bogus complaint.

Jul 21, 2018
Reports that President Donald Trump could soon tap the Strategic Petroleum Reserve

The guy is trying to weaken the US every way he can. Putin really must have him by the balls.

I agree that's a likely scenario, but remember that Trump has a history of making bad deals. This could just be another in a long series of incompetent business moves from Trump. Putin could well have suggested it to him, knowing that Trump's not bright enough to see the problems it could cause. Trump is gullible enough to buy whatever Putin's selling.

Jul 21, 2018
That doesn't really mesh with how he has behaved towards Russia all this time ...practically since he started running for office. Nor does it mesh with the second meeting announced.

There's either massive amounts of (personal) money in it for him or he's being blackmailed. My money is on the latter. Particularly with closed-door meetings that not even the intelligence community knows about.

A traitor at the top is really the pits. Particularly since it reflects on all americans (many of whom don't deserve this...though anybody who voted for Trump surely does.)
It's not like the guy being a total moron wasn't fglaringly obvious from the get-go...or even from before when he was on TV

Jul 21, 2018
The guy is trying to weaken the US every way he can
Yeah more bad news from the evilest bastard the world has ever seen.

But wait -

"Congress and the Obama administration are planning to take another dip into the reserve: The compromise to fund the Highway Trust Fund also relies on sales of crude oil from the SPR. Taken together, the measures could ultimately liquidate more than 20 percent of the nation's petroleum reserves." WP October 28, 2015

-Evil is as subjective as people are brainless. And you can quote me on that.

Jul 21, 2018
That doesn't really mesh with how he has behaved towards Russia all this time
Still dont have an explanation for

"On Tuesday, Berlin quietly gave the go ahead for a new Nord Stream 2 gas pipeline under the Baltic Sea which could increase Europe's dependence on Russian gas in a decision branded a "big victory for the Kremlin".

"The controversial pipeline could allow up to 55 billion cubic metres of Russian natural gas to flow to Western Europe per year..."

-or some 70% of their consumption.

As trump would say, business is business.

Jul 21, 2018
I agree that's a likely scenario, but remember that Trump has a history of making bad deals. This could just be another in a long series of incompetent business moves
It just... it just bears repeating for all the gullible braindead posters here

"Congress and the Obama administration are planning to take another dip into the reserve: The compromise to fund the Highway Trust Fund also relies on sales of crude oil from the SPR. Taken together, the measures could ultimately liquidate more than 20 percent of the nation's petroleum reserves." WP October 28, 2015

-Will they read it THIS time? Doubtful.

Jul 21, 2018
There's either massive amounts of (personal) money in it for him or he's being blackmailed. My money is on the latter. Particularly with closed-door meetings that not even the intelligence community knows about
Yeah once more for all the posturing idiots who actually believe their opinions are their own

"Congress and the Obama administration are planning to take another dip into the reserve: The compromise to fund the Highway Trust Fund also relies on sales of crude oil from the SPR. Taken together, the measures could ultimately liquidate more than 20 percent of the nation's petroleum reserves." WP October 28, 2015

Jul 21, 2018
Anyone? Anyone at all want to try to justify the above examples of typical leftist willful ignorance???

Jul 21, 2018
AAP,
You may be correct. Certainly, when a raging apologist like ghost can't even be bothered to defend Trump and instead resorts to a logical fallacy like whataboutism, it's likely this is another example of Trump's corruption - or corruption as dictated by his dear leader, Putin.

Ghost, just so you know, if I was Obama or a member of Congress in 2015 or even a Democrat or a liberal, you might have a point (not really, though). But I'm none of those.

Jul 21, 2018
So. Obama wants to give away our oil reserves and its ok. Trump wants to give them away and its not.

EXPLAIN.

Jul 22, 2018
Uh huh. So the explanation seems to be cowardly posters who refuse to admit it when they're wrong.

Lies invented and repeated is a major problem with the left. Their opinions are based on fantasy and bolstered by such fabrications.

What's wrong with the truth? Why are you all so afraid of facts?

Jul 22, 2018
You are losing, "otto". These silly comments will not save you.

You are a loser.

Your Rumpy will be in prison.

Jul 22, 2018
"otto" fell for "WMD!", and now is so embarrassed he takes swipes at everybody else.

Conservatives are cowards.

Jul 22, 2018
More whataboutism from the silly poster called ghost. Repeating logical fallacies don't suddenly make them a viable part of a reasoned discussion. They just make you look more of a fool. To be clear, I'm not interested in defending Obama. I disagree with plenty of things he did - possibly even on his decisions regarding the SPR. Your statements about Obama suggest that you disapprove of his use of the SPR. If so, why are you trying to (and failing miserably at) defend a buffoon like Trump?

Jul 22, 2018
when a raging apologist like ghost can't even be bothered to defend Trump and instead resorts to a logical fallacy like whataboutism

Why am I not suprprised that Ghost is pro Trump?

Jul 22, 2018
https://en.wikipe...ust_Fund
https://www.fhwa....ustfund/
Congress has been grappling with the transportation funding shortfall since 2005, and they have not passed an infrastructure funding bill that lasts longer than two years during that span.

The main source of transportation funding for decades has been revenue that is collected by the 18.4-cents-per-gallon federal gas tax. The tax has not been increased since 1993, however, and more fuel-efficient cars have sapped its buying power.

http://thehill.co...tom-fees

An oil reserve would have been useless if our roads fell apart first; also it was the result of 10 years of trying to tackle a problem that began to manifest 12 years earlier than that: in ~1993.

This time we're dipping to ease prices at the pump; and considering eliminating half the reserve to do so.

Jul 22, 2018
More whataboutism from the silly poster called ghost. Repeating logical fallacies don't suddenly make them a viable part of a reasoned discussion. They just make you look more of a fool
Well let me restate it in simpler terms for all simpletons and pinheads. Why is it GOOD when obama was going to do something, and BAD when trump is going to do the exact same thing?

Why do pinheads and simpletons not KNOW that trump wants to do the exact same thing that obama was going to do?

That ones easy. They werent told the whole story by their favorite junk news sources, and they didn't bother to look for themselves.

They'd rather make up their own junk, which is WHY their weltanschuung is so full of junk.
Why am I not surprised that Ghost is pro Trump?
This has nothing to do with pro or anti trump. It is about respect for the TRUTH.

Jul 22, 2018
Re your 'whataboutism' wordism, the merkel/Putin collab is that I suppose. But it is a question I posed to aa in another thread and didn't get an answer there either... and certainly related to this topic.

If Merkel makes a huge business deal with Putin which undermines Germany's claims of commitment to clean energy, AND their outrage over the UK attack, WHY is aa criticizing trump? In fact:

"While claiming to be appalled by Russia's behavior in Syria, Germany continues to push trade not only with Russia, but with Russia's partner in the Syrian genocide, Iran.

"A 2018 German intelligence report confirms that Iran is currently seeking nuclear technology in Germany."

Again, if Merkel does it and its GOOD, why is it BAD when trump does it?

These are not unreasonable questions and they deserve an answer.

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