Energy industry slams Biden's Strategic Petroleum Reserve release plan: 'Not a long-term solution'

https://www.foxbusiness.com/politics/biden-white-house-strategic-petroleum-reserve-energy-industry

this oil reserve release will be proven a bad move in 6 months end. It most definitely will drop gas prices short term. But when the government goes to refill their reserves while our demand is still the same it will cause the price to sky rocket overnight. Not to mention the national security risk this holds. Biden’s administration has easily got to be the most inept in history.

 

Biden must think 6 months will help him look better for the midterm. He is sorely mistaken!

 

We're just lucky that there are no wars or chances of wars occurring now. We don't need a strategic fuel reserve at all now so its ok to use it all up. (Tongue in cheek.)

 

Just the sort of short-sighted stupidity we have come to expect from this administration.

Basically if he would just reverse all of the hostilities he has commenced with against the oil and gas industry since he came into office that would take care of the problem.

 

There isn't a war going on???? lol

The US shipped 2 billion worth of military equipment to a warzone.

 

It should be obvious that it is not meant to be long term solution, but a temporary one.

People cry and whine about gas prices, and then they cry and whine twice as hard when something is done about it. LOL

The reserves exist for this very reason.

Oh, that's the fear. Ok, I get it now. You WANT gas prices to be high because you think it helps your party politically. Oh, my........LOL

 

Sarcasm..... It can sometimes be a challenge.

 

What reason do the reserves exist for?

It says strategic..... I believe that means if the US gets into an active military conflict it's a reserve, reserved for that.

 

No, it is not a military reserve. It was established in 1975 after the oil embargo. It is a part of the Energy Policy and Conservation Act of 1975, which explains its simple purpose: to counter supply interruptions. Up to 4.4 million barrels per day can be drawn for that purpose, and now they are talking about drawing 1M per day.

Trump sold 132 million barrels, and you didn't complain then. Not even Dems complained, so why are you complaining now? Complaining for the sake of complaining?

 

I guess you haven't noticed the price of gasoline lately.

Or the fact that many people that don't have a ton of money in the bank are also complaining.

 

Then why are you complaining about the government doing something about it?

 

I'm not complaining, just because I'm not agreeing with you.

So tell us.... What happens when the strategic reserve is depleted? Since we are in a time of increased demand where do you think that they will have the resources to replenish it from?

 

Did you miss the (Tung in cheek) comment?

 

He’s not fixing the problem. It’s a temporary resolve that will add more demand on top of natural demand of the same supply issue. If you think that’s a fix you’re mistaken

 

Exactly (supply interruptions) is the correct term. But the supply is not being fixed. The interruption will persist because nothing is being done about it.

 

What are you disagreeing with, and what is your counter argument?

There us 600 million barrels in the reserve, so it won't come anywhere close to depleting. It will be replenished the same way it has always been replenished.

Why should we keep a reserve to counter supply interruptions, if we never use it for that purpose.

Eh? I SPECIFICALLY said its a temporary measure, and I think everyone knows it, because the reserve is designed to be a temporary measure.

 

I’m complaining that they’re not doing anything about it. This temporary fix should Coincide with a plan to help the supply come back.

 

US Producers have been asked to ramp up production, but it seems they will agree to increase only 5-7% out of fear of getting burned again when the prices fall. They have been through it too many times to repeat the mistake. Should there be a government owned and operated company which can ramp up production to the max, and then absorb the losses when prices fall? I don't know. I doubt it would get much support. Long term solution seems to be in alternate sources.

Oil companies do what's best for the shareholders, not what's best for the nation. That's the nature of the beast.

Calls to increase US oil production mostly getting shrugs for now
CERAWeek panelists see various short-term and long-term reasons holding back investment
https://www.freightwaves.com/news/calls-to-increase-us-oil-production-mostly-getting-shrugs-for-now#:~:text=The estimates by the U.S.,, slightly more than 7%.
HOUSTON — Even as Secretary of Energy Jennifer Granholm was using the platform of a major energy industry conference to call on the nation’s oil producers to ramp up production, what was being said during other sessions made clear that was not likely to happen.

The increasing U.S. industries’ strategy of restrained output and investment was on display last week at two separate panels at CERAWeek. It’s a game plan that has implications not only for the price of oil in the short and medium terms, but also for the transportation industries that serve it, whether it is driving water via truck to a drill site, hauling frac sand to the oil patch via rail or so many other parts of the supply chain that service the upstream oil and gas sector.

Scott Sheffield, the CEO of Pioneer Natural Resources (NYSD: PDX), one of the largest producers in the shale fields of the U.S., did not refer to Granholm by name in giving his verdict on whether the U.S. upstream would ramp up output. But his comments came soon after her speech to a CERAWeek plenary session.

“We’re not going to chase growth like we all did,” Sheffield said during a panel on balancing growth and investor returns in the North American shale market. Growth rates would be kept at 5%.

On the same panel as Sheffield, Tim Leach, the executive vice president for the Lower 48 at ConocoPhillips (NYSE: COP), said that “accelerating investment in an inflationary environment is never a good idea.”

Raising production for its own sake is no longer on the agenda. “The business model is mid-single-digit growth because that is what investors want,” Michael said at a panel on funding the future oil and gas supply.

 

They need to get granny panties, their thongs are riding up and driving them crazy..

 

Everything old is new again...

Over a century ago, the Texas Oil Cartel fixed prices and bought the Texas legislature, lock, stock and barrel.

In the 1970s, a kid named Ghaddafi copied the Texas Cartel when he started OPEC.

Now it's happening again.

Reminds me of what Q said about the Borg... "They're trying to take over your ship. I wouldn't let them if I were you."

 

Because it doesn't solve any problems and they have to replace cheap oil with expensive oil. Waste of money.

 

So, its better to just sit on the reserves and continue to complain at the pump. Ok.

Fair to day people will complain no matter what.

 

Yes. Releasing the reserves doesn't help. Complaining at the pump has a small chance of getting government to change energy policy. It might help.

 

Contrary to what you seem to think, US Oil is not a government operation. The government has requested private oil companies to boost production, and they agreed to add 5-7%. Oil companies have been burned too many times by investing to add production, only to see prices drop and them take massive losses. It happened in 2020, so its still fresh in their memory. Its not the lack of leases, or pipelines, the companies are simply not willing to take the risk.

Should they establish a government owned company?