Trump to Purchase 75 Million Barrels of Oil for Strategic Petroleum Reserve – IOTW Report

Trump to Purchase 75 Million Barrels of Oil for Strategic Petroleum Reserve

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

11 Comments on Trump to Purchase 75 Million Barrels of Oil for Strategic Petroleum Reserve

  1. “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.”

    2
  2. 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.

    3
  3. 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

    1
  4. 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.

    1

Comments are closed.