Board Type: Semi-PrivateAdmins: Soda

An Interesting IDB update! And how IDB got even faster.  IDB is fast, reliable, and FREE to use. Just join and start posting!

U.S. Looks To Sell 15% Of Strategic Petroleum Reserve

U.S. Looks To Sell 15% Of Strategic Petroleum Reserve

 


The budget deal that the U.S. Congress reached on Wednesday includes the sale of 100 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) between 2022 and 2027—a total volume equal to some 15 percent of the current reserve.

According to the text of the budget deal, carried by Reuters, the agreement—expected to be voted later on Thursday—involves the Department of Energy selling 30 million barrels of the SPR between 2022 and 2025, another 35 million barrels in 2026, and additional 35 million barrels in 2027 to help fund the government.

The budget deal also involves the sale of $350 million worth of crude oil, or some 5.7 million barrels, this year, with proceeds to be used to repair storage units at the reserve.
Currently, the SPR has around 665.1 million barrels of crude oil stored in underground caverns on the coasts of Texas and Louisiana.

Last year, in the draft budget for fiscal 2018, the Trump Administration proposed selling half of the Strategic Petroleum Reserve, hoping to raise some US$500 million during the fiscal year and US$16.6 billion over the next ten years.

The proposal, however, did not become law because of opposition from Republicans in Congress. Some Republican Senators have argued that selling half the SPR would have hurt U.S. oil producers as it would have reduced oil prices.

 

Continued: https://oilprice.com/Latest-Energy-News/World-News/US-Looks-To-Sell-15-Of-Strategic-Petroleum-Reserve7201.html