5 ms·

Why didn’t we fill the reserves in 2020 when oil prices were negative?

• babypuncher 4y ago
  Were they not already full?
• TAForObvReasons 4y ago
  Because it was near max capacity in 2020? https://upload.wikimedia.org/wikipedia/commons/f/f4/US_Strategic_Petroleum_Reserve.webp https://upload.wikimedia.org/wikipedia/commons/f/f4/US_Strat...
• rglover 4y ago
  > Drillers, meanwhile, say they are balking at the government’s offer to take their oil because it is hard for them to move it from inland fields to the SPR delivery sites on the Gulf Coast, and because they worry placing it in the reserve could compromise the oil’s quality. See: https://www.reuters.com/article/us-global-oil-usa-reserves/drowning-in-crude-u-s-drillers-say-trump-strategic-reserve-plan-is-no-lifeline-idUSKCN2251QU https://www.reuters.com/article/us-global-oil-usa-reserves/d... --- Oil transport barges were making bank around that time (I made a decent rip selling calls on co's in that industry) selling tank space on ships at a premium to handle the overflow.
• koolba 4y ago
  Because the Democrats filibustered to remove it from the March 2020 stimulus bill: https://rollcall.com/2020/03/25/oil-purchase-to-fill-strategic-reserve-dropped-from-stimulus/ https://rollcall.com/2020/03/25/oil-purchase-to-fill-strateg... It wouldn’t have been negative, but closer to $25/barrel. Still quite a bit smarter than buying it $100/barrel now.
• imtringued 4y ago
  Because storing oil costs money.