US prepared to tap oil reserves

skiwi · Posted: Mon Oct 03, 2005 2:09 pm Post subject: US prepared to tap oil reserves

US prepared to tap oil reserves

Oil fell on Monday after the Bush administration offered to tap the country's emergency oil reserves, if needed, to prevent a shortage of winter fuel in the world's biggest oil consumer.

US crude oil was off 54 cents at US$65.70 a barrel by 1452 GMT. London Brent crude slipped 30 cents to US$63.18.

"We are prepared to do what is necessary with respect to strategic reserves," US Energy Secretary Sam Bodman said on Monday....
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Cynus · Intermediate Crude Joined: Aug 13, 2004 Posts: 608

That's great , but most of the country doesn't heat their house with oil, they heat it with natural gas, which is even worse off than oil right now. As far as I know, there is no strategic gas reserve.
By the way, how long could the country use the strategic oil reserve to lower gas and heating oil prices before it too is tapped out? We've been using it so much lately I think we should rename it to the tactical petroleum reserve.

seldom_seen · Fission Joined: Apr 12, 2005 Posts: 2062

When the government needs more money they just start printing it. Too bad oil and NG are finite resources. Damn limits suck!

I wonder if as the oil/NG depletion grows if the government will respond by going all out printing endless amounts of funny money. As sort of an infantile psychological response to the limits of oil and gas.

Or maybe that's already happening.

ohanian · Light Sweet Crude Joined: Oct 17, 2004 Posts: 1145

rogerhb

CarlinsDarlin · Moderator Joined: Jul 02, 2004 Posts: 1422

Payback is indeed a bitch. If only they had the cahones to "call a spade a spade." Instead, they'll just continue to prop up the empire until it can no longer support its own weight. Somewhat reminiscent of the fall of Rome. I wish I had noted who said it, but about a year ago on these forums someone said

backstop

When the government hack says they'll "Do whatever is necessary" it would appear to suggest they intend

a) magicking new refinery capacity into being to convert the crude oil in the SPR into useable fuels; or

b) paying the going (escalating) global rate for tanker-loads of refined fuels from abroad; or

c) instructing the US navy to seize such vessels on a daily basis for as long as they keep on leaving oil-export ports; or

d) doing nothing much about it beyond making placatory noises.

You takes your pick . . .

regards,

Backstop
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MicroHydro · Light Sweet Crude Joined: Apr 10, 2005 Posts: 1286

They just want political cover when winter hits, "Hey, we are doing everything we can"
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spartacus

Gas is not oil. There are vast amounts of "stranded" gas around the world, with a large seaborne trade in LNG.

What America faces is a loss of domestic capacity.

If LNG terminals were built in California (say) the price of gas would fall as more entered the system. The flow-on effect to the rest of the world would not be immediate.

US gas prices are not reflected elsewhere in the world, because the US supply is mostly piped from local reserves.

The US has all sorts of political bottlenecks that force up cost (regardless of recent losses and consequent impact on Henry Hub prices).

Ultimately, all resources have an increase, plateau/peak, and then decline. The Oil and gas industries are no different.

Try finding a whale rendering plant now, even though whale oil was heavily used last century.

There is not reason to anticipate co-incident oil and gas peaks anyway.

Specop_007 · Expert Joined: Aug 12, 2004 Posts: 6278

MrPC