U.S. to release 1 million barrels of oil per day from reserves to help cut gas prices

[Dave Hess]

U.S. to release 1 million barrels of oil per day from reserves to help cut gas prices​

U.S. to release 1 million barrels of oil per day from reserves to help cut gas prices

The White House on Thursday announced that the U.S. will release 1 million barrels of oil per day from strategic reserves.

www.cnbc.com

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[spasm3]

Is that a good idea considering the state of world affairs? Will we need that reserve if current supply lines are cut off?

 

[walterjay]

We should be pumping it out of the ground. Build back our capacity. Keep reserves for a genuine emergency.

 

[Ronsant]

I would rather leave the reserves in case we need it for our military. You never know what might happen these days.
Will the release really have much effect on gas, heating oil, diesel etc in a country this large?

 

[mk378]

The price of gas versus the price of crude is much higher than any historical precedent. Making more crude available will not solve that.

 

[eljefino]

We should be pumping it out of the ground. Build back our capacity. Keep reserves for a genuine emergency.

I'm happy that the oil in our ground, within our borders, is a form of reserve.

 

[schwinney]

U.S. to release 1 million barrels of oil per day from reserves to help cut gas prices​

U.S. to release 1 million barrels of oil per day from reserves to help cut gas prices

The White House on Thursday announced that the U.S. will release 1 million barrels of oil per day from strategic reserves.

www.cnbc.com

.

Won't help (very much if at all, as mentioned.)

And we should buy from Canada, if we must look elwewhere. 🇨🇦

Let's not mention the imminent rise from when oil drilling leases are up some are at the end of June....

 

[schwinney]

The price of gas versus the price of crude is much higher than any historical precedent. Making more crude available will not solve that.

Well then, maybe not immediately at first, but eventually it would. Let's refine it into gas. Whole 52% a barrel of oil, I believe it is or something close.

 

[kschachn]

A similar thread from earlier today;

Will release of 1M daily barrels of oil reduce prices?

Please keep this non-political. I'm wanting only the ECONOMIC impact of this 1M barrels of oil daily. Will this suppress the price at the pumps? Second question, would it not be more effective to just do a short-term moratorium on fuel taxes? Allow us to preserve our reserves?

bobistheoilguy.com

 

[BMW Dom]

I thought we just had 2 of these threads that got locked?

 

[schwinney]

I thought we just had 2 of these threads that got locked?

Probably.

 

[Rmay635703]

If you want US crude issues mostly solved you would need to reinstate the former export ban.

Investors, refineries and drillers would fly into a rage and the rest of the world would destabilize and retaliate.

Considering oil goes to the highest bidder the US “being independent “ actually does nothing to help prices at the pump locally, when the global market goes up so do we

 

[PWMDMD]

The last time the price of oil was where it currently is the price of gas was $1.50 cheaper. The gas companies got screwed during 2020 when the economy was shut down and the price of oil went negative. Now, they are trying to make up for lost profits by dissociating the price of oil from the price of gas. Most of this is oil company greed. The Keystone XL and Ukraine are just convenient world events to give cover for the greed.

 

[BMW Dom]

IMO, other than mentioning Biden is in fact the person releasing 1M barrels, the other thread was as non-political as it possibly could be and the mods pulled the trigger too soon.

I see what you're saying. But I'm sure that they know it's a matter of time until the thread gets heated.
And this isn't really a website for discussing politics.
If you disagree with a decision, you should sent a polite private message to a staff member

 

[Zee09]

A nothing burger

 

[Astro14]

Two inappropriate posts, now deleted. One more and the thread gets locked, just like the other thread.

 

[mk378]

Whole 52% a barrel of oil, I believe it is or something close.

And most of the rest becomes diesel and jet fuel, which are worth more per gallon than gasoline.

 

[ammolab]

What exactly does “released” mean. Oil refiners have to buy it correct? At what price? If they buy it at market rate?..how does that bring the consumer relief?

 

[dishdude]

Supposedly this is a bridge until US producers can kick production up, long term we need to get to nuclear and electric cars.

 

[PWMDMD]

What exactly does “released” mean. Oil refiners have to buy it correct? At what price? If they buy it at market rate?..how does that bring the consumer relief?

It doesn't really matter. It still represents only 1% of daily production - so sure, it may reduce the price of oil 1%. When oil was released from the strategic stockpile in Nov 2020 and March 2021 it had no significant effect on gas price. Now factor in that oil price and gas price aren't correlated at the moment anyway and it really means nothing. But at the same time, it also means the Keystone XL would mean nothing too.