Questions on Oil Reserves?

[Huskerguy72]

I understand we have the capacity and have stored up to 726.5 at its peak but now is around 568 million barrels per my research. Not even getting into what that oil was put in reserves for and all of that, I have some rather obvious questions.

1. When the oil is released, where does it go? Is it spread among gas production, home heating oil, diesel or what?
2. As I understand it, the tax payer paid for the oil at the current price at that time but now is it released with no reimbursement? In other words, people think free oil is not dumped into the market? I don't believe it is strategically released to specific areas but rather into a general market?
3. Who then turns the oil into gas or other products? Who pays them for their refinery work? Obviously, these companies deserve to make some money for their work. But does the US government send oil to Chevron or whoever and say, now refine this and send us the bill?
4. IF the release of oil is designed to drive down prices by increasing supply, why can't more people put 2+2 together to determine that just increasing US oil output would accomplish the same thing while at the same time keeping their tax dollars out of it? People are not only paying for the oil put in the reserves, they are paying for the transport of it, the refinement of it, the storage of it and the replacement of it all the while knowing there is more not being utilized.
5. In the end, as I understand it, our tax dollars collectively will have to replace the oil released from the reserves with oil that is being pumped at the current prices. There is no way that can be a good deal for tax payers in the long term but I guess that isn't really a concern.

What am I missing in all of this mess?

 

[buckaroo]

I understand we have the capacity and have stored up to 726.5 at its peak but now is around 568 million barrels per my research. Not even getting into what that oil was put in reserves for and all of that, I have some rather obvious questions.

It was put in place for the military. It was never design for civilian use. Now it's become a political pawn to make whatever party look like they are doing something. And it gets refined and payed for by the taxpayers and used by who at the Federal governments discretion. Bottom line it's not free, we are going to pay for it all one way or another.

 

[beentheredone]

There is one overwhelmingly big reason we are not, and likely never will be, self-dependent when it comes to oil, no matter how much of it we have: money. This is true for two reasons. First, it brings more per barrel in the international market. Second, the easiest (most profitable) oil to refine is Light Sweet Crude, and we ain't got much of it. Much more profitable to sell our lower-quality, harder-to-refine oil overseas, and import the good stuff.

Make no mistake, the entire world, be it "free" capitalist like us, or hardline Communist like China , or criminal-mob oligarchy like Russia -- the whole sham, everywhere, runs completely and purely on money, and what behavior will bring in the most of it. It's why Russia invades Ukraine, and we invade Iraq: profit, baby.

 

[CR244RD]

For several years I served on an "advisory panel" for the Bryan Mound portion of the SPR. No, the Strategic Petroleum Reserve was not intended strictly for the military! Nor, by the way, were "releases" usually ordered by a US President! Normally, oil was "released' - to the market - SOLD, not given away - for economic reasons such as hurricanes or or natural disasters disrupting natural market situations. The company holding the operational contract for the SPR has changed, and citizen advisory panels are no longer - to my knowledge - being maintained, so some factors may have changed.

Mike Holmes

 

[Chief 101]

Is this what the op was attempting to communicate?

 

[mexicanjoe]

15 million barrels is equal to 2 days production of crude from the west Texas oilfields. It does nothing to drive down prices. its all a smokescreen. We have more oil available that Saudi Arabia. This is all for political gain .......BUT: BECAUSE WE WILL HAVE A GAS SHORTAGE DUE TO HIS INEPTITUDE: UNCLE JOE WILL PRECIPTATE ANOTHER RECESSION AND BLAME IT ON THE REPUBLICANS. MARK MY WORDS!!!!!