“$140 Crude and going up ??”
Here is a post “$140 Crude and going up ??” I wrote June 26, 2008. Below my blog are the comments and my replies. Before the global markets meltdown, due to the burdensome price of crude above $100/barrel, amongst other issues, … one of the U..S. Senators I wrote to …? Senator Clinton. YES, the same Mrs. Clinton running for President of the USA. Look at how many times the USA could have sold Strategic Petroleum Reserve (SPR) crude above $100/barrel and bought back 200 million barrels of crude CHEAPER … taking some of the financial burden off the backs of the USA taxpayers. In addition, just talking about selling crude from the SPR would have pushed crude prices down … possibly averting the global markets meltdown. Business educated and minded elected officials would have comprehended the cyclical nature of commodities … like crude, and might have put the SPR $$ BILLIONS to work. Politicians just do not get it. Yet, we keep electing politicians.
Of course the numerous reasons we have to complain about our elected officials and a government that repeatedly flouts the US Constitution and the Civil Rights of the people left and right … that might be due to the people that do NOT vote. As to my blog … here it is …
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$140 Crude ang going up ??
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June 26, 2008 – Comments (4) | RELATED TICKERS: DHT , USO , GW
We don’t have to sit on our hands while crude goes up. We can work to see that the price of crude goes down. and here’s how:
Here’s one possibility:
The US Strategic Petroleum Reserve (SPR), which the US government started filling in Oct 1977 with 2,646,000 barrels, and which stands at 700,372,000 barrels as of March 2008.
Let’s see 700,372,000 bbls x $138/bbl = $96,651,336,000
The USA actually has a HUGE (unrealized long term capital gain) PROFIT on the crude in the SPR.
This is what I’ve recommended to several US Senators: Sell some of the crude from the SPR, maybe up to 200 million barrels, specifically for use in the USA. The USA has several military bases that are mothballed or on standby with little to no use. Look at where those bases overlap electric grid shortfalls, like California, and New YorK, and build new Nuclear electricity plants. It’s green, good for the planet, energy. Run the USA bases off the electricity they produce and sell the surplus electricity to the power companies, as a wholesaler. The USA government would have a steady stream of income, to replenish the SPR, to reduce taxes, to repair and maintain roads, bridges and other infrastrucure that’s long been neglected. The construction industry has been hit hard, You’ll be putting Americans to work. The crude in the SPR produces no income. WE PAID for it.
Also, read the US EIA reports of the Bakken crude right here in the USA. Every effort should be made to put more wells into production now. That would be a great location for a brand new refinery. It also wouldn’t hurt to look for a dis-used base to put a new refinery for the heavy crude nobody has the refinery capability to process. Another benefit of refining heavy crude … there’s a worldwide shortfall of sulfur supply. Sulfur is needed for a lot of things including agriculture fertilizers.
Here’s another benefit: For all these years we’ve built nothing, no new nuclear power plants, no new refineres, we’ve been sending a message to OPEC: YOU have NO Competition, charge us what you want! Tell your Senator, tell your Representative we want it yesterday. You’ll be sending a message to OPEC: YoU’ve GOT COMPETITION! Watch the price of crude drop!
4 Comments – Post Your Own
#1) On June 26, 2008 at 10:22 PM, rudolphsteiner (< 20) wrote:
If oil is peaking globally, selling off the SPR would be very unstrategic.
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#2) On June 26, 2008 at 11:54 PM, jester112358 (28.96) wrote:
Indeed, its worth more in the future in the ground! And you can bet the mid-east states are also thinking along these lines. What do they need with more devalued $s when they have a vital resource nicely stored underground for future profits? We should be buying up more oil and storing it for the future.
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#3) On June 27, 2008 at 1:23 AM, Vet67to82 (< 20) wrote:
Look at the US Energy Information Administration website:
Under Energy Sources, click on Petroleum, under Petroleum (sub-heading U.S. Data) in Summary click on U.S. Crude Oil Supply & Disposition. At the end of the tabbed headers you’ll see “Publications and Analysis” as you roll over that from the drop down menue choose Analysis by Topic then Crude Reserves and Production.
This is a U.S. Energy Information Administration(EIA)/Dept of Energy (DOE) 9 page pdf that you can read and download.
the title of this EIA/DOE report:
Technology-Based Oil and Natural Gas Plays:
Shale Shock! Could There Be Billions in the Bakken?
After you read the report, tell me selling 200 million barrels NOW to solve the problems we have NOW won’t be worth it. AND the money from the SPR goes to the USA. If the USA replaces the 200 million barrels with Bakken crude, WE win ‘cuz not a penny goes to OPEC. It’ll be from the USA left hand to the USA right hand. Gotta love it.
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#4) On June 27, 2008 at 1:30 AM, Vet67to82 (< 20) wrote:
After you read the US EIA report, you might also want to ask yourself, where is the Wall Sreet Journal report?, where is the Barrons report?, where is Investors Business Daily report?
Are they really interested in reporting the news, or just in scaring everyone to sell papers and advertising?
US Energy Information Administration (US EIA)
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