Wait- you mean $7MM/Mo, or divided over ... a really long time, like the Looto?Monthly.
EDIT: was a typo, but gonna let it stand.
Last edited:
Wait- you mean $7MM/Mo, or divided over ... a really long time, like the Looto?Monthly.
Which is why PRC sourced parts for the US military has always been a bad idea. Heck, same for anything in the US .gov or US infrastructure.
I’d suggest smoke signals, but the SNR in that part of the world is crazy high.next... semaphore flags ??
Israel tracked their whereabouts and introduced them all to Allah in their underground bunker.
Unfortunately for you and Israel, Iran launched somewhere between 200 - 400 ballistic missiles in the past hour.I doubt that Iran will engage in any significant way. Their goal is to become a nuclear power, poking Israel is a good way to get set back a decade or more on that objective. It’s not like we wouldn’t be willing to destroy some of that infrastructure claiming that doing so helps to contain the conflict. In fact, we’d like nothing more than an excuse to eliminate Iran’s ability to produce drones for Russia.
I was aware of that when I posted, I think it’s posturing and not significant.Unfortunately for you and Israel, Iran launched somewhere between 200 - 400 ballistic missiles in the past hour.
My prediction is that Iran is about to lose its oil processing capability, just like the Yemenese Houthis did yesterday.
More like semiconductors from Taiwan.DOD and DOD contractors won't even use foreign steel. It has to be domestically produced. If I try to deliver Chinese metal to DOD contractors it gets refused. So I doubt that they use Chinese parts for anything.
The US SPR is sitting at under 350,000 barrels (under 1/2 of what Biden started with and about 1/3 it’s capacity) which is about 2 1/2 weeks of average US consumption. Any major middle east disruption could send a bubble in oil supplies. Imagine if the weather in the Gulf impacts the oil and gas industry (the SPR also is maintained in LA & TX) had taken a real swipe at facilities and hurt the fuel supply. I’m betting the Craps & Giggles administration’s lack of management of the SPR will not even be whispered by MSM. Incidents like Middle East unrest and such are a big reason the SPR was started in the 70’s. Way to go Joe 🙄
along with a bunch or other actions fJB...This is treasonous.
Or good policy to moderate increases to retail gas/oil prices. They were growing at a pretty alarming rate, as you surely recall.This is treasonous.
It's a policy alright, but I wouldn't say it's a "good" policy. I remember when regular unleaded was close to $4/g under GWB, and TPTB didn't empty the SPR then - look at the chart. And I don't believe the reason for the STRATEGIC petroleum reserve is to manipulate the market price, it's to pull us through emergencies. No sir, this was "bad" policy designed to put lipstick on a pig in the short term, and weaken the US in the long term. FJB.Or good policy to moderate increases to retail gas/oil prices. They were growing at a pretty alarming rate, as you surely recall.
Funny that you think any politician thinks long term.It's a policy alright, but I wouldn't say it's a "good" policy. I remember when regular unleaded was close to $4/g under GWB, and TPTB didn't empty the SPR then - look at the chart. And I don't believe the reason for the STRATEGIC petroleum reserve is to manipulate the market price, it's to pull us through emergencies. No sir, this was "bad" policy designed to put lipstick on a pig in the short term, and weaken the US in the long term. FJB.
So, you agree with the current regime's SPR drawdown? You think it is/was good policy?Funny that you think any politician thinks long term.
I think that the SPR was established in response to market manipulations by OPEC, it’s purpose was to moderate price swings.
It was … the early 70’s embargoes hit both price and supply. If you weren’t around gas rationing was done by limiting purchases, odd/even day sakes and such. People would line up the night before just to get 8 gallons of gas … if the station didn’t run out before they reached the pump. The SPR was designed for a buffer of 1 month (the 70’s usage was quite a bit more than today) to keep key things moving if supplies were monkeyed with. The SPR was also suppose to help protect key industrial and military accessibility … just in case foreign oil was hampered it would give a window to adjust supply lines before pumps ran completely dry.I think that the SPR was established in response to market manipulations by OPEC, it’s purpose was to moderate price swings.
The situation is slightly more complicated than your question suggests. The problem I have is not with using the SPR to stabilize prices, it’s with the policies that caused the price fluctuations in the first place. We’d have been better off taking a more measured approach to going green and stopping drilling and several other things including encouraging that little dustup between Russia and Ukraine. Instead we jumped in with both feet and one of the side effects was a tenacious increase in oil prices. America runs on cheap energy, it was right to get prices back down, it’s unfortunate that the action was needed at all.So, you agree with the current regime's SPR drawdown? You think it is/was good policy?
The situation is slightly more complicated than your question suggests. The problem I have is not with using the SPR to stabilize prices, it’s with the policies that caused the price fluctuations in the first place. We’d have been better off taking a more measured approach to going green and stopping drilling and several other things including encouraging that little dustup between Russia and Ukraine. Instead we jumped in with both feet and one of the side effects was a tenacious increase in oil prices. America runs on cheap energy, it was right to get prices back down, it’s unfortunate that the action was needed at all.
The SPR cannot have any lasting impact on prices. If the prices jumped up due to a temporary condition, sure, _maybe_ that would make sense.
But if the problem is structural - the prices are up for a reason that isn't going away - then using the SPR is just pissing away our national security. A transparent and blatant attempt to buy some votes in the short term, where the _best_ outcome is that the gov refills the SPR, wasting more money than was saved AND driving prices up further. Worst case is we never refill it and get caught without it when it is needed.
Aren’t all conditions that effect oil prices temporary? As prices rise, more capacity comes online and prices stabilize, and when prices fall production is reduced.The SPR cannot have any lasting impact on prices. If the prices jumped up due to a temporary condition, sure, _maybe_ that would make sense.
But if the problem is structural - the prices are up for a reason that isn't going away - then using the SPR is just pissing away our national security. A transparent and blatant attempt to buy some votes in the short term, where the _best_ outcome is that the gov refills the SPR, wasting more money than was saved AND driving prices up further. Worst case is we never refill it and get caught without it when it is needed.
Aren’t all conditions that effect oil prices temporary? As prices rise, more capacity comes online and prices stabilize, and when prices fall production is reduced.
The SPR is a tool. Having it is a deterrent and using it is a regulator, in both cases to economic activity that is adverse to the interests of the US, or at least to the interests of the party in power. You might not like that D’s used it to lower the price of gas at the pump, but you also didn’t like the high gas prices, the move did help the economy and helped get inflation under control. Beginning in late 2023 we began refilling the SPR by about 2mm barrels a month; we need to ramp that up to restore the roughly 250mm bls we drew down in 2021-23.
Sorry, but most of this is incorrect.The purpose of the SPR was entirely military. Using it for anything else is a military risk. If you can use and replenish it in a month or two, the risk is smaller. Leaving it depleted for years is a very large risk. Like, right now we are taking about a real risk of WW3 while the SPR is low. That is _stupid_.
It was not intended to be a policy tool. It was intended to insure continuity of supply for oil for military use in wartime.
I don’t think either party should use it to drop gas prices by a quarter for a few weeks before an election. I understand why they do it but it isn’t to help us, it is to buy votes. And if/when they do refill it, the added demand _necessarily_ raises prices. They haven’t saved anyone any money, just shifted the higher prices around to a more politically convenient time.