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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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Thu, 06/23/2011 - 10:22 | 1394610 the not so migh...
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.

Thu, 06/23/2011 - 10:29 | 1394633 lizzy36
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

Thu, 06/23/2011 - 10:29 | 1394659 the not so migh...
the not so mighty maximiza's picture

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

Thu, 06/23/2011 - 10:51 | 1394776 Cpl Hicks
Cpl Hicks's picture

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

Thu, 06/23/2011 - 10:55 | 1394806 the not so migh...
the not so mighty maximiza's picture

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

Thu, 06/23/2011 - 11:07 | 1394875 Steaming_Wookie_Doo
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):


Thu, 06/23/2011 - 11:26 | 1394982 Cpl Hicks
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.

Thu, 06/23/2011 - 12:31 | 1395294 Rick Blaine
Rick Blaine's picture

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

Thu, 06/23/2011 - 13:56 | 1395630 Spirit Of Truth
Spirit Of Truth's picture

There may be something up with Iran:

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

Thu, 06/23/2011 - 15:11 | 1395977 jmc8888
jmc8888's picture

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


Class Warfare? 2nd

Thu, 06/23/2011 - 11:06 | 1394888 DaveyJones
DaveyJones's picture

I thought it qualified as a national emergency

Thu, 06/23/2011 - 10:59 | 1394823 Ivanovich
Ivanovich's picture

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

Thu, 06/23/2011 - 17:51 | 1396696 Crashof2011
Crashof2011's picture

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

Thu, 06/23/2011 - 11:01 | 1394829 Ergo
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:   ("If you go to the NASA home page,, you will see many stories that expose the Nibiru-2012 hoax. Try searching under “Nibiru” or “2012”. There is not much more that NASA can do.")

Why do you disagree?

Thu, 06/23/2011 - 11:06 | 1394863 the not so migh...
the not so mighty maximiza's picture

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

Thu, 06/23/2011 - 12:31 | 1395314 toxic8
toxic8's picture

very interesting tidbit there..

Thu, 06/23/2011 - 13:19 | 1395508 Rusty Shorts
Rusty Shorts's picture

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

Thu, 06/23/2011 - 11:31 | 1395008 Ergo
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.

Thu, 06/23/2011 - 11:25 | 1394960 njdoo7
njdoo7's picture

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

Thu, 06/23/2011 - 11:34 | 1395006 Maxter
Maxter's picture

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


Thu, 06/23/2011 - 12:46 | 1395368 RichardP
RichardP's picture

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

Thu, 06/23/2011 - 11:04 | 1394846 Abitdodgie
Abitdodgie's picture

Maybe of Biblical proportions, something out of this world

Thu, 06/23/2011 - 11:09 | 1394883 Steaming_Wookie_Doo
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.

Thu, 06/23/2011 - 10:44 | 1394754 gringo28
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.....

Thu, 06/23/2011 - 11:10 | 1394889 r101958
r101958's picture

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

Thu, 06/23/2011 - 11:12 | 1394905 caconhma
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.

Thu, 06/23/2011 - 11:29 | 1394980 njdoo7
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.

Thu, 06/23/2011 - 12:49 | 1395383 RichardP
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.

Thu, 06/23/2011 - 13:32 | 1395537 r101958
r101958's picture

Richard - exactly correct. +100

Fri, 06/24/2011 - 12:00 | 1398697 Rhodin
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.

Fri, 06/24/2011 - 12:01 | 1398719 Rhodin
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.

Thu, 06/23/2011 - 10:47 | 1394773 trav7777
trav7777's picture

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

Buy oil with both fists

Thu, 06/23/2011 - 10:51 | 1394775 T-roll
T-roll's picture

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

Thu, 06/23/2011 - 11:18 | 1394942 GottaBKiddn
GottaBKiddn's picture


Exactly!! +++++



Thu, 06/23/2011 - 12:54 | 1395359 Mr Lennon Hendrix
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!

Thu, 06/23/2011 - 10:48 | 1394780 IMA5U
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



Thu, 06/23/2011 - 11:09 | 1394884 HistorySquared
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. 

Thu, 06/23/2011 - 13:34 | 1395555 gorillaonyourback
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

Thu, 06/23/2011 - 10:22 | 1394611 Cognitive Dissonance
Cognitive Dissonance's picture

US Strategic Petroleum Manipulation Reserve

Fixed it for ya.

Thu, 06/23/2011 - 10:27 | 1394617 Skyprince
Skyprince's picture

I feel so much better now.

Thu, 06/23/2011 - 10:23 | 1394619 GeneMarchbanks
GeneMarchbanks's picture

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

Thu, 06/23/2011 - 10:33 | 1394664 Cognitive Dissonance
Cognitive Dissonance's picture

Wait a while longer. It gets worse.

You ain't seen nothing yet.

Thu, 06/23/2011 - 10:58 | 1394834 Raynja
Raynja's picture

That's my theme song for this year

Thu, 06/23/2011 - 10:38 | 1394698 aVian
aVian's picture

you mean crude prank?

Thu, 06/23/2011 - 10:28 | 1394620 speconomist
speconomist's picture

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

Thu, 06/23/2011 - 10:24 | 1394621 gdogus erectus
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.

Thu, 06/23/2011 - 10:24 | 1394622 g
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.

Thu, 06/23/2011 - 10:24 | 1394625 RobotTrader
RobotTrader's picture

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

Thu, 06/23/2011 - 10:25 | 1394632 Robslob
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 basically, we are screwed?

Thu, 06/23/2011 - 12:03 | 1395151 Rusty Shorts
Rusty Shorts's picture


Harmonious. :)
Content. ;)
Indifferent. :-
Discontent. :/
Almost fucked. :(
Totally fucked. :0   -----------you are here----------

Thu, 06/23/2011 - 13:43 | 1395590 gorillaonyourback
gorillaonyourback's picture


Thu, 06/23/2011 - 17:01 | 1396507 iNull
iNull's picture


Thu, 06/23/2011 - 10:26 | 1394637 zKeyserSoze
zKeyserSoze's picture


Thu, 06/23/2011 - 10:27 | 1394640 John McCloy
John McCloy's picture

The reason being done is simple. They cannot allow for adults to gather on the 4th of July and discuss things such as high oil prices. 4th of July and Labor day are considered one of the largest gathering social events where adults can sit around..have a few and discuss ideas. 

Thu, 06/23/2011 - 10:39 | 1394699 fuu
fuu's picture


Thu, 06/23/2011 - 12:58 | 1395414 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Really?  Those are two days I get sh*t faced and can't speak intelligibly.

Thu, 06/23/2011 - 10:37 | 1394714 schoolsout
schoolsout's picture

You make a good point...


Thu, 06/23/2011 - 10:50 | 1394798 IMA5U
IMA5U's picture

yup. govie trix are implemented right in front of holidayz

Thu, 06/23/2011 - 11:09 | 1394909 spanish inquisition
spanish inquisition's picture

Also a good day for Congress to make money on inside info.

Thu, 06/23/2011 - 11:17 | 1394927 r101958
r101958's picture

Heaven forbid they carry pitchforks and axes to the picnics/fireworks.

Thu, 06/23/2011 - 11:33 | 1395000 Bwahaha WAGFDSMB
Bwahaha WAGFDSMB's picture

I suspect the timing has more to do with the end of QE2, the holiday cheer is just an added bonus.

Thu, 06/23/2011 - 10:28 | 1394643 4shzl
4shzl's picture

Just in time for Bill Gross who's gonna need all the lube he can get as the 5-yr. dives under 1.5%.

Thu, 06/23/2011 - 13:47 | 1395603 gorillaonyourback
gorillaonyourback's picture

you really are a retard for that comment.  you would lend $100 for 1 year to make a $1.50,,,, think about that idiot

Thu, 06/23/2011 - 10:28 | 1394647 101 years and c...
101 years and counting's picture

the US consumes 18.5-19.0 MB/day.  imports into the US down 800K per day YoY.  imports down 3.5MB per day since 2008.  refiners wont touch the reserve because they are still sitting on record stock piles.

cracks me up.  the world is in a depression, but there's record oil demand.

cant have it both ways, guys.

Thu, 06/23/2011 - 11:22 | 1394941 r101958
r101958's picture

Yes....down 800k per day but now that they have rescinded the ethanol subsidy....that will be reduced. Just the bump from 10 to 15% limit in ethanol content per gallon....reduced the oil demand for transport by 400k per day. Problem is....we were subsidizing the production of that ethanol. We were paying the extra price per gallon in our taxes instead of at the pump (stealth gas prices). What a farce!

Thu, 06/23/2011 - 12:52 | 1395380 Bwahaha WAGFDSMB
Bwahaha WAGFDSMB's picture

Repeal subsidy without repealing the mandate, the cost will be passed on to the customer, but we won't see less blending unless the mandate is also repealed.

Thu, 06/23/2011 - 10:33 | 1394661 rsnoble
rsnoble's picture

What?  Economy stalls out even further with high gas prices??  No fucking way, that can't possibly be true!

Time to spread some of exons trillions into the economy imo.

Thu, 06/23/2011 - 10:37 | 1394711 campag
campag's picture

with the hurricane season coming up . i can see one of the banks / oiltraders just buying the lot put it into floating storage for resale $20 higher come October

Thu, 06/23/2011 - 11:08 | 1394880 Creepy Lurker
Creepy Lurker's picture

Nice. Yes, I can completely see that being used as a reward for a big campaign contribution.

Thu, 06/23/2011 - 10:42 | 1394748 Version 7
Version 7's picture

The IEA has already urged OPEC to lift production, otherwise the ~1.6 bn barrel stockpile in the 28 countries will have to be soon tapped to keep pace with the demand.

Thu, 06/23/2011 - 11:20 | 1394956 r101958
r101958's picture

OPEC lift production?......bwahahahahhahahhaha!

Thu, 06/23/2011 - 10:48 | 1394755 Mike Cowan
Mike Cowan's picture

Does this affect the cost of KY?

Thu, 06/23/2011 - 10:50 | 1394797 Cpl Hicks
Cpl Hicks's picture

No, KY has its own strategic reserve- managed by Barney Frank.

Thu, 06/23/2011 - 13:52 | 1395616 gorillaonyourback
gorillaonyourback's picture


Thu, 06/23/2011 - 12:55 | 1395415 cbxer55
cbxer55's picture

Instead of KY, just use olive oil.

Thu, 06/23/2011 - 13:30 | 1395541 toxic8
toxic8's picture

not sure if you're joking (It works I'm sure but not so sure about the smell..)


organic coconut oil *does* work however. it's not greasy, has intrinsic anti-fungal properties .. the girlfriend loves it.

Thu, 06/23/2011 - 10:48 | 1394782 carbonmutant
carbonmutant's picture

 If supplies were to be cut... for some reason...

Thu, 06/23/2011 - 10:50 | 1394795 Elmer Fudd
Elmer Fudd's picture

Um, gold is a pretty good proxy for buying oil, its easier to store...etc, etc.

Thu, 06/23/2011 - 11:29 | 1394978 Village Smithy
Village Smithy's picture

Only if you have it.

Thu, 06/23/2011 - 16:56 | 1396500 iNull
iNull's picture

As you said. it's a "proxy." Can't plant it. Can't harvest it. Can't eat it. Can't put it in a gas tank. Can't generate power with it. Can't run 777s or D-11 Caterpillars with it. Can't even defend your home with it (unless you drop it on the intruder's head). It's a proxy for what's real and nothing more.

Thu, 06/23/2011 - 10:50 | 1394800 nasdaq99
nasdaq99's picture

wwonder if the unspoken reason why they're doing this is to raise more cash for Ben to buy Treasuries with???????????????

Thu, 06/23/2011 - 11:00 | 1394841 the not so migh...
the not so mighty maximiza's picture

interesting, dying empire trying to raise cash pronto!!!

Thu, 06/23/2011 - 11:57 | 1395114 stewie
stewie's picture

Ben doesn't need to raise cash to buy anything.

Thu, 06/23/2011 - 12:49 | 1395382 FlyPaper
FlyPaper's picture

Not much$, but might help Treasury go another day before it runs out of money.

Thu, 06/23/2011 - 13:03 | 1395444 Bwahaha WAGFDSMB
Bwahaha WAGFDSMB's picture

30 million * $100 = 3 billion.  Less than 1 day of federal budget deficit.

Thu, 06/23/2011 - 11:03 | 1394840 chistletoe
chistletoe's picture

Is there someone who can keep a closer eye on the Fort Knox of oil?

It would not surprise me none

to hear they release 30 million barrels of light sweet

and replace it with Orninoco and/or Saudi tar,


a lot like selling gold and replacing it with tungsten ....

but they may not tell anybody ....


Thu, 06/23/2011 - 11:01 | 1394847 campag
campag's picture

next week they are going to sell gold from the reserve .is it so

1 they can raise $ for Treasury

2 stop Ron Paul audit

3 stop us driving the price

4 all the above

Thu, 06/23/2011 - 11:12 | 1394902 nasdaq99
nasdaq99's picture

Does the Fed have the authority to sell oil short?


If so, they may be guilty of market manipulation in the oil pits tooo!!!!!!!!!

Thu, 06/23/2011 - 11:14 | 1394928 CrashisOptimistic
CrashisOptimistic's picture

This is being done for A LOUSY 1.4 mbpd from Libya!!

Folks, the Saudis lied, and a great many others have lied.

See, it's not just the 1.4 mbpd.  It's that PLUS the RELENTLESS FALL in oil production form fields that have pumped for decades and decades.

Shed your normalcy bias, if not for you then for your kids.  The party is over and the cops are coming.  They are on horseback.  Four of them.

For your kids to have a chance to be among the 1.5 billion who survive, they MUST have survival skills.  I know it's impossible to pull them out of worthless college to learn farming, but at ALL COSTS you must add farming to their skillset.  If you don't, you kill them.

Thu, 06/23/2011 - 11:50 | 1395081 FalseConsciousness
FalseConsciousness's picture

For your kids to have a chance to be among the 1.5 billion who survive, they MUST have survival skills.  I know it's impossible to pull them out of worthless college to learn farming, but at ALL COSTS you must add farming to their skillset.  If you don't, you kill them.

"NOT ENOUGH TO GO AROUND! BILLIONS MUST DIE!  MUST! Because it is mathematically impossible for the
resources to cover everyone's needs!  So, it is time for"merica to GET TOUGH and FIGHT FOR OUR SHARE!
Support our men in uniform! What, you wanna surrender the 'merican way of life to all those yellows and browns 
over there?!  You some kinda traitor?! Get with the program!"
TPTB will LOVE this trend. I'm sure the Koch brothers, Coors, Scaife, and that whole miserable crowd -- and their astro-turf representatives (Tea Party, etc.) -- will be  right in line with it.

Neo-Malthusianism has always been closely linked with right/reactionary/fascistic tendencies,  and it will be so again
in the near future, I think.  "There's not enough to go around"is the PERFECT quasi-scientific cover-story during an economic collapse for military interventions

Thu, 06/23/2011 - 16:56 | 1396494 iNull
iNull's picture

(facepalm + sigh) There ISN'T enough to go around. Not when you have 7,000,000,000 people living on a finite planet. Food/air deal trumps conspiracy labeling.

Thu, 06/23/2011 - 11:14 | 1394930 user2011
user2011's picture

Chinese and Indian are sending their appreciation now.   Releasing reserve oil won't make OPEC cut their supply, meanwhile driving the oil price down for big oil importing countries like China and India.    Also,  gold dropped 2% today.  It is truly double good news for the Chinese and Indian.

Thu, 06/23/2011 - 11:50 | 1395100 Mec-sick-o
Mec-sick-o's picture

Good news for consumer countries.

Bad news for producer countries.

Good news for speculators.

Bad news for real market.

Thu, 06/23/2011 - 11:20 | 1394949 hardcleareye
hardcleareye's picture

Forbes had an interesting article

"Saudi Bid For ‘QE3′ Quashed By OPEC Discord"

and this one

Then to see this release, very interesting timing...

I believe the Saudis may be able to increase production but not the light sweet crude from Libya, more the heavy sour stuff, and the global refining capacity of the sour crude may not be in place at this time, it also cost more to refine. 


Thu, 06/23/2011 - 11:33 | 1395001 r101958
r101958's picture

They are actually able to 'increase' their 'production' via releases from their worldwide storage facilities (one of which is located on Okinawa).

Thu, 06/23/2011 - 11:43 | 1395071 earnyermoney
earnyermoney's picture

What happens if Iran considers this an act of war and mines the Persian gulf. How does Saudi Arabia deliver all that excess capacity to market?

The Russians will react if this plan is put into motion.

Thu, 06/23/2011 - 11:20 | 1394950 Zymurguy
Zymurguy's picture

Naw, this is just the next step toward crippling this country.  This Marxist in the Whitehouse is simply following the playbook and utilizing every single aspect of the powers allocated to the position to dismantle this country.  He's working from within and systematically setting us up to fail from multiple vectors.

His speech last night about "time to nation build here at home"... are you kidding me?  How long has this evil charlatan been in office and he's only now figured out that we're having major problems at home?  While his wife spends millions of our tax dollars on "diplomatic" trips with the kids and G-ma'.  He knows... he knows exactly what he's doing... never listen to anything he or any politician says... only watch and remember what they DO.

Thu, 06/23/2011 - 11:34 | 1395003 r101958
r101958's picture


Thu, 06/23/2011 - 12:18 | 1395212 Flakmeister
Flakmeister's picture

First of all, a real Marxist would have lined the bankers against a wall and had them shot...

Second of all, whoever won the '08 election won the booby prize. It was impossible for any candidate to implement policies that could have made a difference without directly taking on the Wall Street-MIC, and that was not in the playbook after the financial coup d'etat of TARP (under the Bush Admin and extorted out of a frightened Dem congress).

So if you want to bitch, figure out how we got here in the first place.. 

Thu, 06/23/2011 - 13:32 | 1395534 FrankIvy
FrankIvy's picture

Flak wrote: "First of all, a real Marxist would have lined the bankers against a wall and had them shot..."

Wow.  You've demonstrated a very shocking misunderstanding of basic Communist theory.  The 5th plank of communism, as envisioned by Marx is: "

5. Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly."

Thu, 06/23/2011 - 13:44 | 1395578 Flakmeister
Flakmeister's picture

Not at all....Any revolution under a Marxist banner would have had them shot and replaced with people more in tune with "the needs of the proletariat". Big difference between the banks overtaking the state and the state taking over the banks...we got the former....

The comment was somewhat tongue in cheek, the original poster is confusing Obama with a Marxist, whatever BO is, he is certainly not a Marxist....

Thu, 06/23/2011 - 16:52 | 1396488 iNull
iNull's picture

Didn't China execute some banksters for malfeasance a few years back?

Thu, 06/23/2011 - 22:14 | 1397313 Flakmeister
Flakmeister's picture

Yep, people get shot in totalitarian states, of which Stalinist regimes are a subset....

Thu, 06/23/2011 - 14:56 | 1395898 Chartsky
Chartsky's picture

So if you want to bitch, figure out how we got here in the first place..


Thu, 06/23/2011 - 11:26 | 1394963 Laddie
Laddie's picture

A third factor added to the oil-related cost of the 1973 war (over and above the multi-billion dollar aid package to Israel which began in that year). Deciding to act preventively, as it were, the U.S. created, after some travail, a Strategic Petroleum Reserve ("SPR") designed to insulate Israel and the U.S. against the wielding of a future Arab "oil weapon." It was destined to contain one billion barrels of oil which could be released in the event of a supply crisis. To date the SPR, which still exists and is slowly being expanded, has cost $134 billion—since much of the oil was bought at high prices, and because the salvage value is relatively low. Thus, the 1973 oil crisis, all in all, cost the U.S. economy no less than $900 billion, and probably as much as $1,200 billion. Ironically, military costs themselves were negligible. The 1973 war illustrated the new dimension of Middle East conflicts, where the burdens are economic rather than military.


Thu, 06/23/2011 - 11:39 | 1395034 r101958
r101958's picture

Still like to know where the SA production ramp up is? Also, this use is political and being touted as economic. Either way we look at it, it is an admission of an emergency. Moreover, IMO, it is an admission of PO.

Thu, 06/23/2011 - 11:35 | 1395011 hangemhigh77
hangemhigh77's picture

Did I read that right?  They released ONE DAYS amount of oil?  And the oil market is tanking?  Gee, I WONDER who is piling on short oil, BEN.

Thu, 06/23/2011 - 11:57 | 1395115 buzzsaw99
buzzsaw99's picture

oil futures are month-specific so we know the squid was short the front months for sure.

Thu, 06/23/2011 - 11:42 | 1395049 r101958
r101958's picture

They will spread it out over a month or two. This way it amounts to adding 500k to 2m barrels of production per day. Red light!!! WARNING: Unintended consequences meter in red zone!!!

Thu, 06/23/2011 - 11:54 | 1395104 earnyermoney
earnyermoney's picture

Gotta lower pump prices so GM can move those pickup trucks sitting on dealer lots.

Thu, 06/23/2011 - 12:06 | 1395152 Stuck on Zero
Stuck on Zero's picture

On a Last-In-First-Out (LIFO) accounting basis the United States Government paid an average of about $130/bbl for the oil they are about to draw down.  Brilliant.  NYMEX crude is going for $91.  Remember, George Bush II decided to top up the reserve when oil prices were going North of $140/bbl.    Good business.

Thu, 06/23/2011 - 12:45 | 1395366 Sunshine n Lollipops
Sunshine n Lollipops's picture

Ya think they hand out those MBAs to just anybody? 

Thu, 06/23/2011 - 12:06 | 1395167 mayhem_korner
mayhem_korner's picture

We just bought 30 million barrels of ice cream with our rainy day fund.  Now we're more vulnerable and have to restock the reserve.


Thu, 06/23/2011 - 12:20 | 1395169 tawdzilla
tawdzilla's picture

Bernanke is trying to talk down the economy, and Barry is trying to artificially lower oil prices...only one logical conclusion...they are laying the groundwork for QE3.

Thu, 06/23/2011 - 12:07 | 1395170 Clowns on Acid
Clowns on Acid's picture

The info on the release of the oil reserves were leaked by the Obummer Admin. Look at the charts and timestamps.

Thu, 06/23/2011 - 12:11 | 1395173 the grateful un...
the grateful unemployed's picture

found a lie already. the head of the IEA (since Bush) has the authority to release oil, it is no longer a Presidential decision, solely.

Before they cleaned up their boilerplate, they used to list another 750M bbls of enterprise zone storage, as part of the SPR. Enterprise storage is the trick to this thing, you transfer oil back and forth on paper, and when enterprise wants to buy oil from the tankers coming in from the Middle East, you count everything in your storage.Sorry dont' need anything I am full. (Somebody could investigate but we're screwing ragheads, so bipartisan ignorance is a given)

This is why traders pay little or no attention to inventory numbers, the numbers are all lies. Then there is the matter of some hedge funds buying and storing oil, and at least technically by the old rules, that is still SPR oil, and the President could order it sold. The new boilerplate avoids that distinction, a matter which suggests the Executive office defers somewhat to big oil, which was certainly true during Bush, and if you want to say, Obama too, (see his handling of BP) you would say, yeah Obama too. Now he wants to open up Alaska. Just for the record lets call Barry a friend of big oil.

Now hopefully they will give him a break at reelection time, bring down gas prices, use a few of their tricks. They owe him. Short gasoline futures might be the thing. (note NatGas is weak, so something is going on here)


Thu, 06/23/2011 - 12:38 | 1395341 FlyPaper
FlyPaper's picture

Nat gas is weak...  Summer?  

Thu, 06/23/2011 - 13:45 | 1395597 the grateful un...
the grateful unemployed's picture

A/C or economic recovery? either one would help

Thu, 06/23/2011 - 12:26 | 1395263 mickeyman
mickeyman's picture

I can see the plot of the next Dr. Evil movie--open up huge underground cracks and drain the oil from the strategic reserve.

Thu, 06/23/2011 - 12:30 | 1395304 PulauHantu29
PulauHantu29's picture

Oil is very low (as is gas) and there is no why release emergency stores?

So USO drops a few today ...iin a few eeks it will resume its skyward path as more and more oil is depleted for consumer consumption of massive SUVs (here and in China), wars, etc....I don't see these conditions getting any better in my lifetime.

I added more USO and ANR today.


Thu, 06/23/2011 - 12:36 | 1395319 the grateful un...
the grateful unemployed's picture

a super secret CIA study revealed an emergency crisis would hit America in Nov of 2012, with ground zero being, well you can guess the rest. don't fight the Fed and don't fight those billions Obama is going to spend to win this election

Thu, 06/23/2011 - 12:36 | 1395334 American Sucker
American Sucker's picture

1. Saudi Arabia says it's opening the spigot to crush Iran.

2. T-Prompt speechifies on getting out of Afghanistan.

3. IEA opens up the reserves to damp oil prices.

So we've got Saudi Arabia trying to crush Iran, the US freeing up some troops, and the IEA freeing up some excess oil.  Godspeed, Islamic Republic, 'cause you're next.

Thu, 06/23/2011 - 12:48 | 1395360 sbenard
sbenard's picture

Sounds political to me!

Thu, 06/23/2011 - 13:18 | 1395504 HungrySeagull
HungrySeagull's picture

This is dumb. I would be ADDING to the SOR. NOT releasing from it.

Thu, 06/23/2011 - 13:49 | 1395595 r101958
r101958's picture

What is to keep the Saudi's and others from reducing their production while this SPR release shenanigan takes place? Answer: nothing really (maybe they have no choice anyway).

Thu, 06/23/2011 - 14:42 | 1395830 lesterbegood
lesterbegood's picture

My info says that OPEC will no longer sell oil for USD?




Thu, 06/23/2011 - 15:33 | 1396154 Mec-sick-o
Mec-sick-o's picture

Pull out oil reserves+retire soldiers from Afghanistan=another war, perhaps Iran?

Thu, 06/23/2011 - 16:48 | 1396473 iNull
iNull's picture

Peak oil now 5 years behind us and we still can't admit the pipedream (sic) of everlasting growth is over. What a terminally stupid, delusional fucking species. And that's being extra kind.

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