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The excess supply was meant to carry America through supply shocks. You can argue it should have been portioned out slower, but the current high prices seem lik

The excess supply was meant to carry America through supply shocks. You can argue it should have been portioned out slower, but the current high prices seem like the kind of supply shock the strategic oil reserve was meant for.

throwawaymaths 4y ago
I assumed it was meant for strategic (aka military) purposes.
- arrosenberg 4y ago
  Negative. Military has its own reserves.
  - erichocean 4y ago
    Citation needed. Naval reserves[0] were mostly privatized years ago, and to the best of my knowledge, none of the other branches have ever had them. We have less need for the SPR today because we produce so much, and thus the "supply shocks" it was created to prevent can't really happen anymore—certainly not at the same level as the 1970s. Prior to Biden draining it this year, Congress had already approved dramatically reducing the SPR by 2030. [0] https://www.energy.gov/ceser/naval-petroleum-reserves https://www.energy.gov/ceser/naval-petroleum-reserves
- advisedwang 4y ago
  The Energy Policy and Conservation Act [1] which started the SPR says: > SEC. 2. The purposes of this Act are— > (1) to grant specific standby authority to the President, subject to congressional review, to impose rationing, to reduce demand for energy through the implementation of energy conservation plans, and to fulfill obligations of the United States under the international energy program; > (2) to provide for the creation of a Strategic Petroleum Reserve capable of reducing the impact of severe energy supply interruptions ; > (3) to increase the supply of fossil fuels in the United States, through price incentives and production requirements; > (4) to conserve energy supplies through energy conservation programs, and, where necessary, the regulation of certain energy uses; > (5) to provide for improved energy efficiency of motor vehicles, major appliances, and certain other consumer products; > (6) to reduce the demand for petroleum products and natural gas through programs designed to provide greater availability and use of this Nation's abundant coal resources; and > (7) to provide a means for verification of energy data to assure the reliability of energy data So it very much is about ensuring supply and and price stabilization. [1] https://www.govinfo.gov/content/pkg/STATUTE-89/pdf/STATUTE-89-Pg871.pdf https://www.govinfo.gov/content/pkg/STATUTE-89/pdf/STATUTE-8...
  - throwawaymaths 4y ago
    Thanks for clarifying. I think it's kind of unfortunate, but there we are.
    - Bud 4y ago
      Why is it unfortunate? It's a worthwhile and perfectly legitimate use of SPR to even out economic impacts.
      - throwawaymaths 4y ago
        I happen to disagree, because it blunts economic impetus to create sustainable alternative

throwawaymaths 4y ago

I assumed it was meant for strategic (aka military) purposes.

arrosenberg 4y ago
Negative. Military has its own reserves.
- erichocean 4y ago
  Citation needed. Naval reserves[0] were mostly privatized years ago, and to the best of my knowledge, none of the other branches have ever had them. We have less need for the SPR today because we produce so much, and thus the "supply shocks" it was created to prevent can't really happen anymore—certainly not at the same level as the 1970s. Prior to Biden draining it this year, Congress had already approved dramatically reducing the SPR by 2030. [0] https://www.energy.gov/ceser/naval-petroleum-reserves https://www.energy.gov/ceser/naval-petroleum-reserves
advisedwang 4y ago
The Energy Policy and Conservation Act [1] which started the SPR says: > SEC. 2. The purposes of this Act are— > (1) to grant specific standby authority to the President, subject to congressional review, to impose rationing, to reduce demand for energy through the implementation of energy conservation plans, and to fulfill obligations of the United States under the international energy program; > (2) to provide for the creation of a Strategic Petroleum Reserve capable of reducing the impact of severe energy supply interruptions ; > (3) to increase the supply of fossil fuels in the United States, through price incentives and production requirements; > (4) to conserve energy supplies through energy conservation programs, and, where necessary, the regulation of certain energy uses; > (5) to provide for improved energy efficiency of motor vehicles, major appliances, and certain other consumer products; > (6) to reduce the demand for petroleum products and natural gas through programs designed to provide greater availability and use of this Nation's abundant coal resources; and > (7) to provide a means for verification of energy data to assure the reliability of energy data So it very much is about ensuring supply and and price stabilization. [1] https://www.govinfo.gov/content/pkg/STATUTE-89/pdf/STATUTE-89-Pg871.pdf https://www.govinfo.gov/content/pkg/STATUTE-89/pdf/STATUTE-8...
- throwawaymaths 4y ago
  Thanks for clarifying. I think it's kind of unfortunate, but there we are.
  - Bud 4y ago
    Why is it unfortunate? It's a worthwhile and perfectly legitimate use of SPR to even out economic impacts.
    - throwawaymaths 4y ago
      I happen to disagree, because it blunts economic impetus to create sustainable alternative