Obama ready to release oil from petroleum reserve

[sinkingfeeling]

Source: Yahoo.com

WASHINGTON (AP) -- The Obama administration has decided to release 30 million barrels of oil from the U.S. Strategic Petroleum Reserve as part of a broader international effort to pump more 60 million barrels onto the world market over the next month.

U.S. Energy Secretary Steven Chu said the release of oil is a response to oil supply disruptions caused by turmoil in the Middle East and North Africa, including Libya.

The administration said the uprising in Libya has resulted in a loss of about 1.5 million barrels of oil a day. The release comes as the United States approaches a period of high energy use in July and August.

High oil prices have increased the cost of gasoline, contributing to an economic slowdown and putting increased political pressure on President Barack Obama.



Read more: http://finance.yahoo.com/news/Obama-ready-to-release-oil-apf-2233806614.html?x=0&utm_source=twitterfeed&utm_medium=twitter

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Probably a good move.

[bahrbearian]

1. I'd like to have an Aduit on the Strategic Reserve,

I'd like to know if it really exist or not..I think it was used in a ponzi scheme, some people got rich.

[Imajika]

3. Yes, the strategic oil reserve exists...

n/t

[bahrbearian]

13. You know this how? and how much of it exists?

[Imajika]

16. Because there are big caverns full of oil...

..that you can see for yourself?

http://en.wikipedia.org/wiki/Strategic_Petroleum_Reserve_%28United_States%29

Here are the locations and amounts they hold:

Bryan Mound - Freeport, Texas. 20 caverns with a storage capacity of 254 million barrels (40,400,000 m3) with a drawdown capacity of 1.5 million barrels (240,000 m3) per day.

Big Hill - Winnie, Texas. Has a capacity of 160 million barrels (25,000,000 m3) with a drawdown capacity of 1.1 million barrels (170,000 m3) per day. This facility is planned to be expanded by 250 million barrels (40,000,000 m3) with a new drawdown capacity of 1.5 million barrels (240,000 m3) per day.

West Hackberry - Lake Charles, Louisiana. Has a capacity of 227 million barrels (36,100,000 m3) with a drawdown capacity of 1.3 million barrels (210,000 m3) per day.<5>

Bayou Choctaw - Baton Rouge, Louisiana. Has a capacity of 76 million barrels (12,100,000 m3) with a maximum drawdown rate of 550,000 barrels (87,000 m3). This facility is planned to be expand to 109 million barrels (17,300,000 m3) with a new drawdown capacity of 600,000 barrels (95,000 m3) per day.

And here is the inventory:

http://www.spr.doe.gov/dir/dir.html

What is it your disputing here? Is there some kind of conspiracy theory going around that claims these big, giant caverns of oil don't exist?

[ArcticFox]

20. Wow, all so close together

I'd think strategy would dictate spreading them out more

[razorman]

7. Kind of like the "Social Security Trust Fund".

[Yon_Yonson]

15. The spigot is probably located in Cheney/Bush crime family office!

[leftyohiolib]

2. "Probably a good move." if this were 2009 he wouldnt be doing this

election season is quite a motivator isnt it. but good for him anyway.

[FarLeftFist]

5. In 2009 gas was about $2.50/gallon

Now would be a good time.

[TheMadMonk]

17. Cognitive disonance is bloody amazing 'round here.

Climate change! Climate Change! CLIMATE CHANGE!!!!!111111!!!!!!oneONE!!!!111111

GIVE US FUCKING CHEAP PETROL!!!!!!!!!!!!!!!!!!!!

[Imajika]

6. The economy is struggling badly..

...and high gas prices are one of the reasons.

Looks to me like Obama's economic team is seeing the bad data come in, have decided high gas prices are acting as a wet blanket on the economy, and are making an effort to lower these gas prices.

[Yupster]

21. It will also make the government a bit over a billion dollars

Maybe keep the debt ceiling another day away.

[plumbob]

4. After the release, they can wait until oil hits another record high to refill

it, like they usually do. This reserve thing is one of the greatest subsidies to the oil industry ever.

[Springer9]

8. Oil futures have already fallen 5% this AM

and while 30 million barrels are but a drop in the ocean it sends a strong signal to the speculators that have been holding supply off the market looking for higher prices. Obama is not to be messed with. While his detractors will accuse him of being politically motivated, this President has the integrity to do the right thing, politics be damned,unlike Bush who only did the same thing to help his re-election,

"I'd rather be a good 1 term President than a mediocre 2 term one."

[JAnthony]

12. Thanks for that, I have to agree. Well-stated !

[nichomachus]

9. Wow -- a three-day supply for the US. That'll help. It'll be gone by Monday.

[still_one]

10. This is not supply and demand, this is about speculators, market manipulation, and pure monopolies

[unionworks]

11. Oil well....

The price of oil HAS been dropping, but gasoline prices have not followed in any remotely proportionate way. ???

[msongs]

14. well there's an easy PR fix to a problem that demands substantial solutions lol nt

[timefortherevolution]

18. It must be good because the Chamber of Commerce is crying

like babies!

They HATE to see Obama do well with the economy.

[L0oniX]

19. 60 million is a drop in the bucket.