Strategic Oil Reserves

[HavBlue]

The nice thing about having a strategic oil reserve is knowing that if the United States were ever to come to the point oil became a real issue (meaning we got cut off) our military would have the necessary reserves to keep it functioning in a manner that kept us safe and free. Apparently Congress has voted to stop filing the strategic reserve in an effort to hold gas prices or possibly reduce them somewhat. Given the fact that Congress has shown to be a bit less than intelligent in the last few years I guess they also forgot the strongest military on Earth needs oil and without it that same military may as well be in the stone age; planes won't fly, tanks won't run, troops can not be transported, ships won't move, supplies like ammo, MRE's and of course the much needed moral booster mail call will be a thing of the past because they won't get there. In all, should we get caught with our proverbial pants down not having those strategic supplies could really hurt.

The U.S. Strategic Oil Reserve is the largest stockpile of government held emergency crude oil reserves in the world. This reserve was established in the aftermath of the 1973-74 oil embargo and it provides the President with a powerful response option should there be a disruption in commercial oil supplies which could threaten the U.S. economy. It also allows the United States to meet part of its International Energy Agency obligation to maintain emergency oil stocks, and it provides a National Defense fuel reserve. The Energy Policy Act of 2005 directed the Secretary of Energy to fill the reserve to its capacity of 1 billion barrels. In essence, it was set up to avoid economic harm to the U.S. on the short term. The issues we now face in regards to oil are not short term, they are not going away and any relief to the problems we now face is years away at best.

As estimated in 2005, the United States consumed oil at a rate of 20.8 million barrels per day. In effect, this means the strategic reserve could literally be drained inside 90 days should present consumption levels hold in an embargo scenario and that is not good. It's time to start drilling in those places that have traditionally been prohibited by environmental pressures and the infamous green team. Tapping the strategic oil reserves will do more harm than good as doing so offers little help and is limited at best.

 

[CanadianFZ6]

Wee paranoid are we? I assume you are talking about an embargo from the middle east rather than a world embargo? There are a lot more sources of oil other than the middle east. In an emergency if (someone/nation) were threatening the US (hence North America) while an embargo was in place, I am sure Canada would "slide" some oil to your military. You forgot about your neighbour to the north? Alberta (last time I checked) produces enough oil to meet all Canadian demands (read... we really don't need to import oil). Alberta is currently producing 1.2 billion barrels a day and expecting 3 billion by 2020. I am quite sure that would/could be re-directed to your military in a serious crisis. I am just asking, but do you guys still not produce oil in parts of the US like texas?

Here is a quote I found online...

"Second only to the Saudi Arabia reserves, Alberta's oil sands deposits were described by Time Magazine as "Canada's greatest buried energy treasure," and "could satisfy the world's demand for petroleum for the next century".

 

[HavBlue]

Wee paranoid are we? I assume you are talking about an embargo from the middle east rather than a world embargo? There are a lot more sources of oil other than the middle east. In an emergency if (someone/nation) were threatening the US (hence North America) while an embargo was in place, I am sure Canada would "slide" some oil to your military. You forgot about your neighbour to the north? Alberta (last time I checked) produces enough oil to meet all Canadian demands (read... we really don't need to import oil). I am quite sure that would/could be re-directed to your military in a serious crisis. I am just asking, but do you guys still not produce oil in parts of the US like Texas?

In 2004, the Nation of Canada produced 3.135 million barrels per day. During this same time Canada consumed 2.294 million barrels a day. They also exported 1.6 million barrels per day and imported 963,000 barrels so It would appear they won't have much to send our way. Yes, we do have wells in Texas and states like Tennessee are actually looking into fracking old wells.

The reality of it all boils down to China and India who, if current increases in consumption levels continue, will consume more oil than the entire North American continent within 10 years. OPEC and others won't need to sell oil over here when their biggest customer is Asia.

 

[GConn]

Feel like I am asking to be flamed but here it is....

Agree with CanadianFZ6. I am also sure that the US will feel free to invade any country refusing to sell oil....

 

[HavBlue]

Feel like I am asking to be flamed but here it is....

Agree with CanadianFZ6. I am also sure that the US will feel free to invade any country refusing to sell oil....

Why would you feel a flaming coming on? This is a valid point but not just for the United States, for any country who was in a position where a total loss of oil could in fact shut things down. Just take away the oil and see what stops. Heck, check out what hirer prices are doing now. Here, in the U.S., it is now costing roughly 1,300 dollars to fill an 18 wheeler that gets roughly 5 miles per gallon. That cost will be passed on the the consumer that will pay more for virtually everything that is transported. My wife purchased an airline ticket 4 months ago. The price of that same ticket is now almost double. The problem here in the United States is not one of a lack of oil. Rather, it is a lack of having the ability to drill for it due to environmental restrictions. We have plenty of oil but try getting it. Similar restrictions are in place for building nuclear power plants and refineries. Bottom line, you can't have it both ways, meaning you can't have gas at lower prices if you don't have a strong supply and an efficient method of refinement and you can't have low cost energy if you don't allow the method for its production to be built.

 

[Doorag]

On gas prices... My friend and I checked US v UK gas prices and found that when you can buy 98 RON gas in the US (which is premium unleaded in the UK) it costs exactly the same. The reason US gas is so much less expensive is that it's not as high RON.

 

[wrightme43]

Ok not flaming you Gconn.
Do you honestly believe deep down inside that the US will invade a country, kill and destroy for oil? Seriously? Your joking right?

I know its fashionable to hate the US. The fact is and has been, and will continue to be, that this country is very helpful to others.

If you are talking about Iraq. You do understand that the vast majority of people there welcome us, and are very glad Saddams rape rooms, and torture rooms are gone. They FLOCK to vote, risking death.

To nip the waterboarding, and naked pyramid thing in the bud.
If someone was actually sawing your head off with a knife on camera, I believe you would beg for the embarrasment "torture" of a womans panties on your head. I have to believe there is a moral difference between feeling like you are drowning, and drowning in your own blood while a mad holds your severed head aloft and screams Allah Akbar.

I will be more than glad to debate this. You are allowed your opinion, but so am I.

On the strategic reserve, it is really only meant for the military. Its a good idea. Releasing it to control pricing is a horrible horrible idea.

Nuclear power and more refineries are the answer to our pricing problems. 50$ oil brought all sorts of drilling areas into play. 100$ brings profitability to almost any method.

Are you aware of the tax benifit for drilling in the US?

100% of the money to drill is Taxes paid. 80% the first year. Spend 100,000 on a driling program this year. You just paid 80,000 in taxes. Win lose or draw.
Hit a well that is productive? 15% of the pay out is tax free too.
The incentives are there. Hell you can lose ten times to win once and still come out ahead now.

about half a barrel of oil 42 gallons, so 21 gallons is made into gasoline in the US.
117$ a barrel. AT 3.80 a gallon thats what 80$ (right at it) Now in that the refiner profit, transport, TAX!!!, store profit. You dont think the oil company gets all that money do you?

For what it does, the amount of energy stored Gasoline is cheap.

 

[wrightme43]

Wee paranoid are we? I assume you are talking about an embargo from the middle east rather than a world embargo? There are a lot more sources of oil other than the middle east. In an emergency if (someone/nation) were threatening the US (hence North America) while an embargo was in place, I am sure Canada would "slide" some oil to your military. You forgot about your neighbour to the north? Alberta (last time I checked) produces enough oil to meet all Canadian demands (read... we really don't need to import oil). Alberta is currently producing 1.2 billion barrels a day and expecting 3 billion by 2020. I am quite sure that would/could be re-directed to your military in a serious crisis. I am just asking, but do you guys still not produce oil in parts of the US like texas?

Here is a quote I found online...

"Second only to the Saudi Arabia reserves, Alberta's oil sands deposits were described by Time Magazine as "Canada's greatest buried energy treasure," and "could satisfy the world's demand for petroleum for the next century".

The oil sands are going to make Canada a fortune. A stinking huge fortune.

I just hope you guys dont spend it all on Terrence and Phillip dolls. LOL LOL LOL

 

[Hellgate]

This is totally off the top of my head (remember my hobby business is a partner in a non-operating oil company - we are a middle man between the investor and the operator) the number one importer of oil to the US in Canada, the number two is Mexico. I don't recall the percentages but Canada and Mexico make up about 65% of the oil the US consumes.

I can also tell you that drilling is going CRAZY, WILD in the US right now. New Mexico is EXPLODING with drilling and exploration.

As far as congress shorting the Strategic Oil Reserves I feel they are pandering to voters and are short sighted. My 2 cents.

 

[blubullit]

The oil sands are going to make Canada a fortune. A stinking huge fortune.

Hi all, I thought I better chime in on this topic since I am from Alberta. Many Albertans and Canadians are horrified that we are destroying pristene wildlife habitat and virgin forests in order to keep the U.S. machine rolling.
The scar on the landscape is already irreversible. The Reclamation of much of the area will never be done because of the massive impact strip mining has had. Harvesting oil sands is not like drilling. You have to strip mine the ground away to get the bitumen and then, the refining process is twice as involved and has multiple drawbacks (pollution). The oil has to be mechanically and chemically separated from the sand, producing stagnant settleing ponds and chemical industrial waste.
Also, many here feel that producing oil to sell to the U.S. is in turn supporting their foreign policy, and everyone has an opinion on that of course.
These are not nessesarily facts but observations. And... yes, wrightme43, we Canadians do have a fondness for silly talking cartoon characters who fart on each other.

 

[GConn]

HAVBLUE sorry for jacking your thread, but I just can't resist

Ok not flaming you Gconn.
Do you honestly believe deep down inside that the US will invade a country, kill and destroy for oil? Seriously? Your joking right?

Hope I was...

I know its fashionable to hate the US.

I am not a true fashion junkie hehehe

The fact is and has been, and will continue to be, that this country is very helpful to others.

That's exactly where we disagree...You see, I refuse to believe that a country is doing what it's doing because it wants to help people. The US cares about people only where oil drips out of the ground. Caspean sea and Middle East. I don't disapprove fighting for your interests but I do disapprove looking the other way while doing it. The news always say what good was done (which was done without a doubt), but never mention the innocent killed by "smart" or dumb (my definition ) bombs, hitting wrong targets. If fighters are hiding in populated area, this is not an excuse for bombing a populated area.

If you are talking about Iraq....

I am talking about Kuwait, Iraq, Afghanistan, Yugoslavia and soon Iran. Iran was on the shortlist for a few years now and is just waiting for its turn. Everything that was in the way of that pipeline got its share of interest from the US. Nowadays for example some people have the right to call themselves Repuplic of Macedonia because the US/NATO have interests there (See pipeline goes through their country). Macedonia is Greek. Alexander the Great was Greek. They are not Greeks.

If someone was actually sawing your head off with a knife on camera., I believe you would beg for....

Many people lost their heads in my country (it was one of the countries that the US and UK cared about deeply). Quoting Mr. Hardman ( I don't know how his name was spelled but he was the assistant of H. Kissinger regarding the Cyprus problem) "Our purpose was to divide Cyprus, without causing a Greek-Turkish war, and that was what we managed to do". Guess what, I was born after the Turkish Invasion and grew up watching my father every morning looking at his house, from 3 miles away unable to even go there. He should then forget about his childhood, his properties and friends he lost in this "war". Guess what. H.Kissinger got a Nombel price for peace....

See my point, simply put, is that people in a country are allowed to know only what they should. The same happens with every single country, people should learn to research on their own and then make up their minds.

I will be more than glad to debate this. You are allowed your opinion, but so am I.

Although you got me in a debate....you lill sneaky rat... I don't want to enter deeper in such a conversation because I'll sound antiamerican....which I am not. I don't hate Americans. People have done nothing wrong to me. I just have strong beliefs for some international politic issues and tactics used. What I was really glad to hear on your part & other guys that replied to me was that you accepted my opinion even though you disagree. I truly respect that :thumbup:

 

[HavBlue]

This is totally off the top of my head (remember my hobby business is a partner in a non-operating oil company - we are a middle man between the investor and the operator) the number one importer of oil to the US in Canada, the number two is Mexico. I don't recall the percentages but Canada and Mexico make up about 65% of the oil the US consumes.

I can also tell you that drilling is going CRAZY, WILD in the US right now. New Mexico is EXPLODING with drilling and exploration.

As far as congress shorting the Strategic Oil Reserves I feel they are pandering to voters and are short sighted. My 2 cents.

In April of 2005 the US House voted to allow oil drilling in the areas of Alaska. In a letter of January 2008 to Rep. Ed Markey (D-Mass.) Rep. Don Young (R-Alaska) said he was "disappointed" by Markey's efforts to block oil and gas exploration in the Arctic National Wildlife Refuge (ANWR) and more recently in the Outer Continental Shelf (OCS) lease 193 along the Chukchi Sea. Lease 193 is Polar bear habitat and if the Department of Interior moves on making this an endangered species that lease area could be cut off all together. As it stands, lease 193 is estimated to contain 15 billion barrels of oil and billions more in other product like natural gas. Exploration is occurring but at best any benefit to this is years away.

 

[HavBlue]

GConn, I think it safe to say no country has ever invaded another without respect to the benefits it will bring to themselves. This is known as foreign policy and it will continue although not often by means of an engagement known as war.

 

[Doorag]

Let me start by saying that I'm an American. Born and raised in Tennessee with a long history of family service in the military - and very proud of it.

BUT - I can see GConn's point. Take Zimbabwe for example. Mugabe's regime is just as harsh, if not worse than Saddam's. Is anyone taking any notice? No. Wonder why? There's no oil, that's why. If the US were honestly going around the world defending democracy, they would have been in Zimbabwe a long time ago, but they aren't.

Also don't believe everything you see/read on the US news. Over the 9 years I've lived in the UK I have found many instances of US media telling a completely different story than the rest of the international media. A lot of stories in the past couple of years around N. Korea particularly. Be aware that your news IS being filtered. Those of you in the millitary probably already realize this, though.

 

[wrightme43]

Afghanistan Crude Oil Production by Year (Thousand Barrels per Day)

How many countries help rebuild after a war?
The general pattern thru out history has been invasion, rape, confiscation, conscription, execution, and subjecation.


Ok on the dropping bombs and killing civilians in mosques deal.

Soldiers wear uniforms. Why? So they can be recognised, and to PROTECT civilians from accidental harm. If a army hides among civilians they break one of the oldest rules of warfare. They put the people the profess to fight for at risk.

If soldiers pretend to surrender and then turn and fight, they make all other attempts at surrender null. If your wonded hold a grenade and wait for a doctor to come and help then kill the doctor your soldiers lose the help of the doctors.

You know the US is not making the profit from Iraqs oil production. That money just does not magicly jump into the US treasury.
War for oil? We are paying for a very expensive war. We are paying for the oil price of 115$ a barrel. We are losing our soldiers, and materials.

If this was a war for oil and we were the bad guys we are presented as. Here is how it would work.

Bomb the hell of the country. Invade the country. Round up majority people able to resist. Males between the ages of 16-45. Execute them and bury in mass graves. Install puppet government, or protectorship. Build heavily defended ports. Award contracts to drill and produce oil to US companies only. Produce the oil only for sale in the US. Transport oil to the US. Sell to the US, at less THAN market value.

That is not what is happening.
Our soldiers our helping to build a country that is free of the horrible abuses Sadaam and his cronies made.

Should we take Mugabee out? I think so. Here read a bit about him. Robert Mugabe - Wikipedia, the free encyclopedia


We provide 400 million in food aid to Zimbabwe. If we were to invade wouldnt it be presented at a White country for Colonization? Our government is responsible for the ouster of the white minority rule in that country. It was racist and wrong. This situation is 1000 times worse though. One of those tossed the baby out with the bathwater things. That has cost 10s of thousands of lives.

We are not a cruel country that goes around invading and taking things from other countries. We could. The fact is we could pretty much invade whatever country we want, smash it, and take what ever we want. The only real resistance could come from England, Russia, France, and China.
England and France with nuclear weapons.
Russia, and China with soldiers and nuclear weapons.

That is not to be arrogent, its just the facts.
Remove the nuclear option and the only countries really able to mount a strong defense would be China, and Russia.
If we were bent on world domination, or controlling the worlds oil supply, we would not be working to build a democracy in Iraq.

 

[GConn]

fine. we disagree

 

[Doorag]

You know the US is not making the profit from Iraqs oil production. That money just does not magicly jump into the US treasury.
War for oil? We are paying for a very expensive war. We are paying for the oil price of 115$ a barrel. We are losing our soldiers, and materials.

You hit it right on the head. The US isn't making anything out of it. Mr. Bush and his buddies are - and they don't care how many soldiers die in the process.

 

[mikelb63]

As a Canadian I am supposed jump on the American bashing bandwagon. While I believe the US has made many foreign policy mistakes I believe at the end of the day they are a global force for good. China and Russia scare me. How would they handle citiziens like Cindy Sheehan or Michael Moore? The US is far from perfect, but in just about every case - they're better than the alternative.


I don't believe the high gas prices are a bad thing. As long as oil and gas is cheap there is no need to explore other alternatives. Instead the global economy continues to provide economic support to countries like Venezuela and Iran. Without a increase in price there is no economic incentive. Without an economic incentive nothing will happen. We've got cars like the prius and the Volt. Solar power and other renewable energy sources are suddenly very close to being profitable. It will be interesting to see what our energy sources are like in 10 years.


Doorag made a comment that the US news is filtered. I have to respectfully disagree. I'd suggest that American news is BIASED - not filtered. Just like the Canadian news is. Just like European news is. We don't get news. We get the news STORY.

 

[wolfc70]

Rather, it is a lack of having the ability to drill for it due to environmental restrictions. We have plenty of oil but try getting it. Similar restrictions are in place for building nuclear power plants and refineries. Bottom line, you can't have it both ways, meaning you can't have gas at lower prices if you don't have a strong supply and an efficient method of refinement and you can't have low cost energy if you don't allow the method for its production to be built.

Bingo!!!! We have legislated the country into a corner. Everyone pandered to the "enviromentalists" and now we can not use the resources we have. Nuke power is very safe, many countries are turning to nuclear power. Here we have made it taboo. The Not In My Backyard people have won, and we are all paying the price.

 

[OneTrack]

I wish you guys would stop telling the Yanks that we've got oil...lots of it.
Anyway...we all know that they'll come for our water first.
Oh....and our beer.