Oil Slides as Obama Admin Opens Up Reserves

Strategic Oil Reserve

I believe is in theory to be used in times of emergency, ie wartime shut down of supply or embargo.
How is routine supply and demand changes an emergency?
 
The Dude said:
Strategic Oil Reserve

I believe is in theory to be used in times of emergency, ie wartime shut down of supply or embargo.
How is routine supply and demand changes an emergency?
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you have a point, however, our economy is not doing well and a mere 30 million barrels isn't going to effect the overall supply. i believe we have more than our stated minimum and i believe this is likely a deal worked out with SA.
 
It's a very short term political move when oil was already plunging.
Thankfully he's not adopting a long term fix like opening up drilling to trillions of barrells.
I much prefer a very limited supply with exploding demand like we have generated by China, India and Brazil.
 
The Dude said:
It's a very short term political move when oil was already plunging.
Thankfully he's not adopting a long term fix like opening up drilling to trillions of barrells.
I much prefer a very limited supply with exploding demand like we have generated by China, India and Brazil.
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you're right it is political, but if it helps oil go down further, i'm ok with that. he should adopt long term planning, but i don't think he cares about that, he is much more interested in his short term political goal of reelection.
 
Even Bush II was smart enough not to do this. Congratulations on your support of one of the few stupid, desperate things Obama has done.
 
how is it stupid?

The release, which will be done over 30 days, represents half of a 60 million barrel supply hike announced by the International Energy Agency, which includes the United States as one of its 28 member nations.
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perhaps dune should read before doing his usual attack and run posts without ever actually debating
 
It's stupid for the country's long term energy policy, but smart politically cause it'll look like more of the plunge in price is due to this move since it was already falling.
If he actually did a USA energy security move to increase supply the turbo-libs would make the Union protestors look like they were playing tidly winks.
 
The Dude said:
It's stupid for the country's long term energy policy, but smart politically cause it'll look like more of the plunge in price is due to this move since it was already falling.
If he actually did a USA energy security move to increase supply the turbo-libs would make the Union protestors look like they were playing tidly winks.
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how is using a mere 30 million barrels, which will be replaced in no time, harming our long term energy policy? further, seems this was part of an agreement with other nations so that they too would boost output....so explain to me how that harms us in the long term....

dune can't, but i know you at least debate
 
Yurt said:
you have a point, however, our economy is not doing well and a mere 30 million barrels isn't going to effect the overall supply. i believe we have more than our stated minimum and i believe this is likely a deal worked out with SA.
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It has little to due with Saudi and everything to do with Libya's lack of production. It is friggin retarded to waste our reserves in this manner. It is not what they are there for. Obama just wants to be seen as 'doing something'.
 
Superfreak said:
It has little to due with Saudi and everything to do with Libya's lack of production. It is friggin retarded to waste our reserves in this manner. It is not what they are there for. Obama just wants to be seen as 'doing something'.
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i'm saying, it was an agreement with them and others, i never said it wasn't about libya, the article states up front that is the main concern

The release, which will be done over 30 days, represents half of a 60 million barrel supply hike announced by the International Energy Agency, which includes the United States as one of its 28 member nations.
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how long do you believe it will take to replenish those 30 million barrels?
 
Yurt said:
i'm saying, it was an agreement with them and others, i never said it wasn't about libya, the article states up front that is the main concern

how long do you believe it will take to replenish those 30 million barrels?
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Obviously it will take months, because if the idiots turn around and replace it tomorrow, then what was the point of releasing it. The REASON it is stupid is not because it would be hard to replace in a few days, it is stupid because WHAT if a CRISIS happens after we release it and before we replace it? 30 million is only a couple days demand in the US... so not a huge impact, but we don't want this to become habit forming.

The POINT yurt is that the reserves are for EMERGENCIES.... such as OPEC shutting off oil supply or a natural disaster shutting down a major source of supply for months. It is not to be used because a bunch of politicians want a short term drop in prices.
 
Superfreak said:
Obviously it will take months, because if the idiots turn around and replace it tomorrow, then what was the point of releasing it. The REASON it is stupid is not because it would be hard to replace in a few days, it is stupid because WHAT if a CRISIS happens after we release it and before we replace it? 30 million is only a couple days demand in the US... so not a huge impact, but we don't want this to become habit forming.

The POINT yurt is that the reserves are for EMERGENCIES.... such as OPEC shutting off oil supply or a natural disaster shutting down a major source of supply for months. It is not to be used because a bunch of politicians want a short term drop in prices.
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i am ok with with it taking a few months. i don't want it to be habit forming, but it is hardly a dent and it appears to be in line with agreements from other countries to also up their output. i don't believe 30 million barrels would change anything if a true crisis happened. if something that drastic happened, 30 millions barrels will do nothing except maybe, save the pain for a day or two. because if it truly hits the fan, i guarantee you the government will restrict oil use in the US to far, far less than our current consumption.
 
i just read that clinton sold about 30 million barrels in 96-97

1996-97 total non-emergency sales for deficit reduction - 28 million barrels (4.5 million m³)



now that is a head scratcher
 
Dumb move, totally political, but it does prove that with just a small increase in supply prices drop. Therefore open up some domestic oil fields and the prices will drop more and stabilize.
 
Damn Yankee said:
Dumb move, totally political, but it does prove that with just a small increase in supply prices drop. Therefore open up some domestic oil fields and the prices will drop more and stabilize.
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it is political, but i don't think it is dumb and yes, we need to open up domestically
 
this shit is hillarious, just read a bit about Obama timing it to burn speculators.
Political move, shit unless oil goes all the way below 75 or stay low 80's come next nov few will remember the move.
For the long term health of big oil ie our supply I like Obama's resticted supply policy.
 
The Dude said:
this shit is hillarious, just read a bit about Obama timing it to burn speculators.
Political move, shit unless oil goes all the way below 75 or stay low 80's come next nov few will remember the move.
For the long term health of big oil ie our supply I like Obama's resticted supply policy.
Click to expand...
You don't like free markets?
 
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