Strategic Oil Reserve refilled at a profit, nice

Kevin, there's certainly none of your type that ca  make sense of the US Strategic Oil reserves data.  The big story started this discussion is about replacing 4 million barrels, or 0.66% of the reserve capacity.  The article also talks about how they replaced 140 million barrels, which they never did.  The interested reader will look at the reserve volume data from my link.  This writer is a dishonest agenda driven Lib.

Kevin won't address the topic honestly.

No Libs want to talk about the massive 0.6% addition to the Strategic Oil Reserve?  That's big news with the Lyin' Liberal media.  You guys got snookered like you always do.  The next thing you'll tell us is that Sleepy hasn't been paid tens of millions for selling government favors.

Average price paid for oil in the Reserve - $29.70 per barrel

The cost to fill the reserve was less than $30 & refilling it costs between $70-$90.  So by drawing down the reserve & then refilling it, the Govt loses money.

From Energy.gov

https://www.energy.gov/ceser/spr-quick-facts#:~:text=Average%20price%20paid%20for%20oil%20in,the%20Reserve%20-%20%2429.70%20per%20barrel

Let's run the numbers, 43,250,000 barrels of oil purchased at an average price of $77 is $3,330,250,000

Sold at an average of $95/barrel with an average $29.70 cost is a profit of                       $2,824,225,000

For a total loss of                                                                                                                 $506,025,00

I was wrong.

Of course, it costs more to refill it than it cost to fill it originally. So what? The purpose of the Reserve was never to stockpile oil for a profit. It was designed to serve as a safety net in case we somehow couldn't pump oil from the thousands of active oil wells all over the country. We've never had that problem, though.

The release of part of the Reserve was done to stabilize oil prices, and it did exactly that. No other discussion is needed.

There is 270 million fewer barrels in our insurance policy.  It was down about 310 million.  Only 13% of what was extraction has been replaced.

Kevin's argument is that if we all quit buying insurance, we can save money.  Good one.

We should have 10 more reserves of this size and they should always be full.

Boiler's argument is that we should never use our fire insurance, even if our house burns down...because we might need it later...?

We have approximately 500 times the volume of the Reserve sitting beneath unused wells and previously surveyed and permitted drilling sites. Not to mention about three times that much that's just sitting there in the ground.

Therefore, the original purpose of the Reserve is obsolete, and Biden's use of it was appropriate.

Tell me, Boilerboob, can you imagine Trump ever taking steps to stabilize gasoline prices??

We can save money by not buying "insurance" when the event against which we're insuring is extremely unlikely. Maybe Boilerboob can tell us what catastrophic event would shut down all oil production in the US.