Dan Bongino:
Yesterday I thought we were in for a historic day when the price of oil (as measured by the May WTI futures contact) opened below $13. Then it fell below $10… and $5…. and $1… and then zero. By the time the contract settled, a barrel of oil cost an incredible negative $37.63.
It was only for a brief time yesterday that we experienced negative oil prices, but the entire futures curve has taken a hit. As of writing, a barrel of oil (June contract) has already fallen over 40% this morning to under $12 at one point.
Capitalizing on that decline, President Trump is using the opportunity to build America’s Strategic Petroleum Reserve. According to Fox Business: READ MORE
Smart buy. It’s good for the taxpayers, the strategic reserve and good for the oil industry, as it bouys the price of oil.
I am sure this was ‘part of the deal’ with the Saudis and Ruskies.
That is called a win/win for all in foreign geo-ecnomic policy.
My math says that is 3 billion 150 million gallons of oil. Takes a big can to hold that.
Meanwhile, the world’s oil storage system is nearly full. Standby for an international game of oil chicken.
saved the military a lot of money, and helped a bit with draw down & storage esp. if they take actual delivery.
“Enraged Democrats complain that he should have done it yesterday when they would have paid the government $37 bbl to store the oil in the SPR! Alexandria Occasional-Cortex D-NY, claims he deliberately missed a chance to stick it to his fat cat oil barron buddies and the American people, adding that once the Green New Deal passes, the American people will be getting it good and hard.”
75 million barrels is a 3-4 day supply for USA needs.
That oil is not stored in tanks. It is stored in huge salt caverns.
If we put another 75 million barrels, that will be about a one week supply.
Now would be a good time to give Saudi Arabia a little payback for 9-11
Wanna do something for your country. Fill up your gas tank. Then drive your vehicle 200 miles in one direction, turn around and come back. Then fill your tank up and do it again
Does this mean that solar-powered aircraft carrier idea will get shelved for another few years?
I live a few miles from one of the biggest underground reserves. My brother-in-law is the chief geologist there. Imagine rows of underground caverns 200 feet across and 1,500 feet tall filled with crude oil. The caverns are created within gigantic deposits of pure salt deep underground by drilling down into to them and injecting steam to dissolve the salt. They remain filled with water during the process so they don’t collapse. As oil is pumped into the caverns, the water is pumped out from the bottom. Since oil and water don’t mix and oil is lighter than water, this works beautifully. The facility is guarded very well, but the oil itself is virtually impervious to terrorism. It just sits very far underground in those caverns waiting to be pumped to the surface when needed.