A lot wrong here IMO
by DBCooper (2024-03-24 12:23:26)
Edited on 2024-03-24 12:52:14

In reply to: At first glance, no, but if you think about it,  posted by G.K.Chesterton

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First of all the SPR was used for an emergency, when Biden sold 40% when Russia invaded Ukraine. So, emergency seen and countered.

Second, Nixon times are much different than modern times. We were not big oil producers in the mid 70s, now the US is the biggest in the world and we export more than we import.

Finally, price of oil has gone up and down while Biden has sold of the SPR, so while it’s a nice headline, it doesn’t have as much of an effect on the price of oil as people may think. And it’s a bit bizarre to claim that if it did the fact it reduces the price of oil would eliminate oil production here in the US which has reached all time high levels as the price of oil has been relatively stagnant over the last 18 months. Oil production is still profitable well below $70/80 a barrel. I think it’s close to $30/40 a barrel when profitability is not there

With that said I do think Biden should have added to the reserve when it got under $70 as he supposedly promised Saudi Arabia. So he made a mistake there IMO, but it isn’t a game changer or destroyer of our energy policy because he didn’t.

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