In 2004 / 2005, when the U.S. was re-filling our strategic petroleum reserve, the average Domestic Crude Oil Prices were in the $50.00 - $55.00 range per barrel.
Domestic crude oil prices are now $103.00 +/- per barrel. After the world wide crisis is over, it makes sense that oil will go back to around $70-$80 per barrel, which is still a higher price than the past 4-year average.
It makes sense to sell off 1/4th of the reserve at $100+ per barrel to increase supply and keep domestic prices stable during this time... but then replenish the reserve again in the future at a lower price of $70+ per barrel.
I think i must have missed something...I thought we weren't tapping into our reserves at all, just buying our total requirements from Russia/others, since biden scribbled on a notebook first day in ofc...if WE aren't using our reserves, who is? or if we ARE using our reserves, what is it being used for? please advise what i have missed...thanks, all...
In 2004 / 2005, when the U.S. was re-filling our strategic petroleum reserve, the average Domestic Crude Oil Prices were in the $50.00 - $55.00 range per barrel.
Domestic crude oil prices are now $103.00 +/- per barrel. After the world wide crisis is over, it makes sense that oil will go back to around $70-$80 per barrel, which is still a higher price than the past 4-year average.
It makes sense to sell off 1/4th of the reserve at $100+ per barrel to increase supply and keep domestic prices stable during this time... but then replenish the reserve again in the future at a lower price of $70+ per barrel.
Done in thirty....three?
I think i must have missed something...I thought we weren't tapping into our reserves at all, just buying our total requirements from Russia/others, since biden scribbled on a notebook first day in ofc...if WE aren't using our reserves, who is? or if we ARE using our reserves, what is it being used for? please advise what i have missed...thanks, all...
One of the paths to the precipice.