Biden administration to buy 3 million barrels of oil to begin replenishing emergency oil stockpile

[Social Media]

The Biden administration announced plans on Monday to buy 3 million barrels of crude oil, marking the start of a years-long process aimed at replenishing America’s depleted emergency oil stockpile.

The Energy Department is soliciting offers of crude oil to refill Big Hill, one of the four major oil storage facilities along the Gulf Coast that make up the Strategic Petroleum Reserve.

However, the 3 million barrels will make up just a sliver of the vast amounts of oil released from the SPR in recent years.

Faced with spiking gas prices, President Joe Biden has aggressively drained the SPR, the world’s largest supply of emergency crude oil.

[scottiejohn]

I thought the US had a debt problem!

[candide]

31 minutes ago, scottiejohn said:

I thought the US had a debt problem!

It's been a profitable operation. Sell at around $96 per barrel, then buy back at around $71.

https://finance.yahoo.com/news/us-made-4-billion-selling-160400735.html

[scottiejohn]

47 minutes ago, candide said:

It's been a profitable operation. Sell at around $96 per barrel, then buy back at around $71.

https://finance.yahoo.com/news/us-made-4-billion-selling-160400735.html

I am not disputing that but they need to borrow the money first!

[candide]

19 minutes ago, scottiejohn said:

I am not disputing that but they need to borrow the money first!

Agree. A related issue is the level of oil reserve which is really needed, now that the U.S. is energy independent.

[metisdead]

An off topic deflection post and the replies have been removed.

[placeholder]

4 hours ago, candide said:

Agree. A related issue is the level of oil reserve which is really needed, now that the U.S. is energy independent.

It's not just a matter of being energy indendent. It's also about having enough of a reserve to counter OPEC when they restrict production and send prices skyrocketing. Of course, with time, and the growing use of renewables, OPEC's leverage will become less and less.