3 ms·
Wouldn't even at peak levels (700mil) the total reserve be enough for just ~35 days or so? Of course that's still a lot but I'm not sure if 300 million barrels
by qwytw 2y ago
Wouldn't even at peak levels (700mil) the total reserve be enough for just ~35 days or so? Of course that's still a lot but I'm not sure if 300 million barrels over a couple of years could affect prices that much.
Also it kind of made sense to sell when the price was so high and fill it up later.
- darth_avocado 2y agoIf its 35 days at 700 mil, it's 15 at 300. 35 days doesn't seem like a lot but in case of emergencies, I'll take 35 over 15 any day. You need to give yourselves time to at least react to situations.
- JumpCrisscross 2y ago> You need to give yourselves time to at least react to situations Our strategic reserves are for low-grade emergencies. For anything minor, the status quo will do. For anything major we’ll re-route civilian supplies. In between, the strategic reserve lets the military increase consumption without raising voters’ gas prices.
- shakow 2y ago> for just ~35 days or so? At full consumption. I'm pretty sure that in circumstances that would lead to the use of the reserverve, oil would be strongly rationed and directed towards hospitals/army/police/logicstics/etc.
- qwytw 2y agoSure, but US has almost doubled its production since the early 2000s while consumption has actually slightly decreased. So I'd question the need to maintain a very large reserve anymore. IMHO these days using it as an "economic tool" to balance supply/demand would make a lot more.