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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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Cpl Hicks
Cpl Hicks's picture

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

Thu, 06/23/2011 - 10:55 | Link to Comment 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 | Link to Comment 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):

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

 

Thu, 06/23/2011 - 11:26 | Link to Comment 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 | Link to Comment Rick Blaine
Rick Blaine's picture

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

Thu, 06/23/2011 - 13:56 | Link to Comment Spirit Of Truth
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.

Thu, 06/23/2011 - 15:11 | Link to Comment jmc8888
jmc8888's picture

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

38....simulated

Class Warfare? 2nd

Thu, 06/23/2011 - 11:06 | Link to Comment DaveyJones
DaveyJones's picture

I thought it qualified as a national emergency

Thu, 06/23/2011 - 10:59 | Link to Comment Ivanovich
Ivanovich's picture

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

Thu, 06/23/2011 - 17:51 | Link to Comment Crashof2011
Crashof2011's picture

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

Thu, 06/23/2011 - 11:01 | Link to Comment 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:  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?

Thu, 06/23/2011 - 11:06 | Link to Comment 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 | Link to Comment toxic8
toxic8's picture

very interesting tidbit there..

Thu, 06/23/2011 - 13:19 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Maxter
Maxter's picture

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

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

 

Thu, 06/23/2011 - 12:46 | Link to Comment 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 | Link to Comment Abitdodgie
Abitdodgie's picture

Maybe of Biblical proportions, something out of this world

Thu, 06/23/2011 - 11:09 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment r101958
r101958's picture

Richard - exactly correct. +100

Fri, 06/24/2011 - 12:00 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment GottaBKiddn
GottaBKiddn's picture

 

Exactly!! +++++

 

 

Thu, 06/23/2011 - 12:54 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

US Strategic Petroleum Manipulation Reserve

Fixed it for ya.

Thu, 06/23/2011 - 10:27 | Link to Comment Skyprince
Skyprince's picture

I feel so much better now.

Thu, 06/23/2011 - 10:23 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

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

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

Wait a while longer. It gets worse.

You ain't seen nothing yet.

http://www.youtube.com/watch?v=7miRCLeFSJo

Thu, 06/23/2011 - 10:58 | Link to Comment Raynja
Raynja's picture

That's my theme song for this year

Thu, 06/23/2011 - 10:38 | Link to Comment aVian
aVian's picture

you mean crude prank?

Thu, 06/23/2011 - 10:28 | Link to Comment speconomist
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/

Thu, 06/23/2011 - 10:24 | Link to Comment 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 | Link to Comment 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 | Link to Comment RobotTrader
RobotTrader's picture

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

Thu, 06/23/2011 - 10:25 | Link to Comment 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 screwed....so basically, we are screwed?

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

ECONOMIC THREAT LEVEL

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

Thu, 06/23/2011 - 13:43 | Link to Comment gorillaonyourback
gorillaonyourback's picture

lolololol

Thu, 06/23/2011 - 17:01 | Link to Comment iNull
iNull's picture

Chuckle.

Thu, 06/23/2011 - 10:26 | Link to Comment zKeyserSoze
zKeyserSoze's picture

idiots

Thu, 06/23/2011 - 10:27 | Link to Comment 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 | Link to Comment fuu
fuu's picture

Bingo

Thu, 06/23/2011 - 12:58 | Link to Comment 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 | Link to Comment schoolsout
schoolsout's picture

You make a good point...

 

Thu, 06/23/2011 - 10:50 | Link to Comment IMA5U
IMA5U's picture

yup. govie trix are implemented right in front of holidayz

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

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

Thu, 06/23/2011 - 11:17 | Link to Comment r101958
r101958's picture

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

Thu, 06/23/2011 - 11:33 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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.

http://stopethanol.wordpress.com/2010/09/07/e15-will-make-no-difference-...

http://torontostar.morningstar.ca/globalhome/industry/news.asp?articleid...

Thu, 06/23/2011 - 10:33 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment r101958
r101958's picture

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

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

Does this affect the cost of KY?

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

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

Thu, 06/23/2011 - 13:52 | Link to Comment gorillaonyourback
gorillaonyourback's picture

lmao

Thu, 06/23/2011 - 12:55 | Link to Comment cbxer55
cbxer55's picture

Instead of KY, just use olive oil.

Thu, 06/23/2011 - 13:30 | Link to Comment 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 | Link to Comment carbonmutant
carbonmutant's picture

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

Thu, 06/23/2011 - 10:50 | Link to Comment 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 | Link to Comment Village Smithy
Village Smithy's picture

Only if you have it.

Thu, 06/23/2011 - 16:56 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment stewie
stewie's picture

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

Thu, 06/23/2011 - 12:49 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment hardcleareye
hardcleareye's picture

Forbes had an interesting article

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

http://blogs.forbes.com/christopherhelman/2011/06/08/saudi-bid-for-qe3-quashed-by-opec-discord/

and this one

http://blogs.forbes.com/christopherhelman/2011/06/22/saudis-set-to-bankrupt-iran-with-flood-of-oil/

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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment r101958
r101958's picture

+100

Thu, 06/23/2011 - 12:18 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment iNull
iNull's picture

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

Thu, 06/23/2011 - 22:14 | Link to Comment Flakmeister
Flakmeister's picture

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

Thu, 06/23/2011 - 14:56 | Link to Comment Chartsky
Chartsky's picture

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

+100

Thu, 06/23/2011 - 11:26 | Link to Comment 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.

source

Thu, 06/23/2011 - 11:39 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Sunshine n Lollipops
Sunshine n Lollipops's picture

Ya think they hand out those MBAs to just anybody? 

Thu, 06/23/2011 - 12:06 | Link to Comment 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.

Brilliant.

Thu, 06/23/2011 - 12:20 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment FlyPaper
FlyPaper's picture

Nat gas is weak...  Summer?  

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

A/C or economic recovery? either one would help

Thu, 06/23/2011 - 12:26 | Link to Comment 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 | Link to Comment PulauHantu29
PulauHantu29's picture

Oil is very low (as is gas) and there is no emergency...so 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.

GL!

Thu, 06/23/2011 - 12:36 | Link to Comment 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 | Link to Comment 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 | Link to Comment sbenard
sbenard's picture

Sounds political to me!

Thu, 06/23/2011 - 13:18 | Link to Comment HungrySeagull
HungrySeagull's picture

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

Thu, 06/23/2011 - 13:49 | Link to Comment 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 | Link to Comment lesterbegood
lesterbegood's picture

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

 

 

 

Thu, 06/23/2011 - 15:33 | Link to Comment 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 | Link to Comment 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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