A Refresher On The US Strategic Petroleum Reserve

Tyler Durden's picture

Courtesy of Reuters we have this lovely graphic reminder of what the US Strategic Petroleum Reserve looks like. Also, putting the 30 million barrel draw from the SPR in perspective, the US consumes 21 million bpd, and Canada exports over 2 million barrels daily to the US...

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the not so mighty maximiza's picture

There must be a national emergncy we don't know about for them to release from the SPR.

lizzy36's picture

It is called QE3.

And the National Emergency is the economy. And obama coming into his relection year.

It is all happening right in front of your eyes

the not so mighty maximiza's picture

I am thinking more an astronomical event, we will see soon.

Cpl Hicks's picture

Obama's reelection qualifies as an astronomical event. To him, anyway.

the not so mighty maximiza's picture

Obama is the second coming incarnate Corporal Hicks, did you miss the memo?

Steaming_Wookie_Doo's picture

When you said Hicks, I was really thinking of Hudson (which is far more appropos to Bammy's level of competency):

http://www.youtube.com/watch?v=dsx2vdn7gpY

 

Cpl Hicks's picture

Hudson has been demoted to the worst job in the Colonial Marines- keeping the Obama kids away from the potato chips.

Rick Blaine's picture

"We're on the express elevator to hell...going down!"

Spirit Of Truth's picture

There may be something up with Iran:

http://thespiritoftruth.blogspot.com/2011/06/something-up-with-iran.html

Iran's Bushehr nuclear power plant is set to officially go into operation in August.

jmc8888's picture

Lt. Bernanke, how many drops is this for you?

38....simulated

Class Warfare? 2nd

DaveyJones's picture

I thought it qualified as a national emergency

Ivanovich's picture

Why would an astronimcal event call for release of the emergency oil reserve??

Crashof2011's picture

US debt ceiling, $14.294 * 10^12 is an astronomical number

Ergo's picture

"an astronomical event"

Really???  Is this the internet rumors about planet X or a dwarf star sweeping through our solar system in a few months? 

If so, NASA says it's an internet hoax.  A quick google:  http://astrobiology.nasa.gov/ask-an-astrobiologist/intro/nibiru-and-doomsday-2012-questions-and-answers   ("If you go to the NASA home page, nasa.gov, you will see many stories that expose the Nibiru-2012 hoax. Try searching nasa.com under “Nibiru” or “2012”. There is not much more that NASA can do.")  http://www.nasa.gov/topics/earth/features/2012.html

Why do you disagree?

the not so mighty maximiza's picture

Ergo , your absolutely right I believe all government agencies and appendages

toxic8's picture

very interesting tidbit there..

Rusty Shorts's picture

2007 was the last year published, mainly because they can't find a chart big enough.

Ergo's picture

Ah, so it is the Nibiru thing.  I certainly hope you're wrong.  But since I live close to the gulf coast, I may not be here for you to say you told me so.  I appologize in advance.  Unfortunately, I don't have anything concrete enough to quit my job over.  Good luck.

njdoo7's picture

I am confident that this is not what he was alluding to.  Take your straw man nonsense elsewhere.

Maxter's picture

"NASA -Warns Employees and Families to BE PREPARED (for what?!)"

http://www.youtube.com/watch?v=W3gxTUMr-I0

 

RichardP's picture

Be prepared in case of natural disaster or civil disturbance.  Same preparedness as it ever was.

Abitdodgie's picture

Maybe of Biblical proportions, something out of this world

Steaming_Wookie_Doo's picture

If it's all that Biblical (or Mayan) then 30 mil bbls of oil isn't going to do much for us at that point anyway.

gringo28's picture

if $5.4b in replacement cost for the 60mm barrels of crude is what you call QE3, then we are really in trouble.....

r101958's picture

Consider this a gas price subsidy.....which is really what it is......and again, we are paying one way or another.

caconhma's picture

The facts

  • Saudi, Kuwait, Qatar, and other our US Middle Eastern puppets just do not have any additional oil producing capabilities.
  • Oil consumers are starting to release & use their strategic reserves. These reserves will not last for long.

The bottom line: the peak present oil production is about reached. Alternative oil production capabilities (sand oil, etc.,) are years away and they will be expensive, very expensive.

 

Predictions: just watch for $200+ pb oil prices before this year-end.

njdoo7's picture

I agree with prediction of $200+ pb oil...but watch for US drilling to commence, and for large oil reseres to be "discovered" once oil is this scarce versus demand.

RichardP's picture

And what good will those huge reserves do us if they are able to produce only, say, 4 barrels per day.  Remember that, in terms of rising demand, reserves are less important than how many barrels per day can be extracted.

r101958's picture

Richard - exactly correct. +100

Rhodin's picture

You may recall the extreme pressure present at the BP gulf disaster.  There are several more such projects underway world wide that have not exploded. Some will yield (each) more bpd than BP was polluting the Gulf with.  China might be about to begin one soon off of Cuba.

Rhodin's picture

You may recall the extreme pressure present at the BP gulf disaster.  There are several more such projects underway world wide that have not exploded. Some will yield (each) more bpd than BP was polluting the Gulf with.  China might be about to begin one soon off of Cuba.

trav7777's picture

alll the Presidents have been doing this with the SPR.  It seemed clear Bama would too.

Buy oil with both fists

T-roll's picture

Exactly. Tyler u need to come up with a way for users to give a thumbs up for good posts.

GottaBKiddn's picture

 

Exactly!! +++++

 

 

Mr Lennon Hendrix's picture

Do not think...feel!  It's like a finger pointing at the moon.  Do not concentrate on the finger or you will miss all the heavenly glory!

IMA5U's picture

funny how this was right after obamanation was yapping about troop withdrawl ...  too bad its a dk slap to wall street

but the little guy will now be able to buy some beef jerky and a lotto ticket with the lower price of gas

 

 

HistorySquared's picture

This is the Obama Adminsitration trying to buy votes at the expense of long term security for this country. What if there is a war, like a real one between between iran and isreal, not one that we create.

If you want to bring down oil prices, how about stop printing money? Ah, according to Beranke, printing money doesn't impact commodity prices. 

gorillaonyourback's picture

yes thats what i was wondering, i actually think its peak oil starting to hit, high gas price with faltering economy supply cant even keep up with demand in this environment

Cognitive Dissonance's picture

US Strategic Petroleum Manipulation Reserve

Fixed it for ya.

Skyprince's picture

I feel so much better now.

GeneMarchbanks's picture

Is this someones idea of a cruel prank? Sick... completely ill...

speconomist's picture

Nice couple of videos with Max Keiser and Michael Krieger about the Strategic Petroleum Reserve.

http://maxkeiser.com/2011/06/18/on-the-edge-with-michael-krieger/

gdogus erectus's picture

Aside from a psy-ops for manipulating crude prices, the SPR is nothing more than the war machine's gas tank in case the stations are closed for a few days.

g's picture

Lets hope it is actually saved for an emergency, rather than using SPR for political purposes, as we have heard on occasion.

RobotTrader's picture

LULU and BBBY celebrating the outright collapse in oil prices today.

Robslob's picture

21 million barrels a day (7.65 billion a year)...unless demand is destroyed we are screwed.

If demand is destroyed we are also screwed....so basically, we are screwed?