Republicans Send Letter To Energy Secretary To Question Biden Over SPR

[Economy 52,842]

https://oilprice.com/Latest-Energy-News/World-News/Republicans-Investigate-Bidens-Misuse-Of-SPR-To-Control-Prices-At-The-Pump.html

 

Republicans are accusing Biden of misusing the SPR (Strategic Petroleum Reserve) and draining it to the lowest levels in decades for political motives heading into midterms since lower gas prices are seen as a positive for elections and wrote to the energy secretary asking for Biden to formally explain himself

 

Large SPR releases are generally seen to be something to be reserved for emergencies only or when National energy security is threatened. The SPR levels have mainly held steady since the 1980s with minor releases and refills along the way

 

However despite that general perception or standard, there is no actual law that says Biden can't choose to release them when his administration sees fit

[Economy 52,842]

I'm no Republican lover but low-key I think they have a small point. 

 

Almost 1/3 of the reserve has been drained this year and while gas prices may have been uncomfortable, it was hardly an emergency situation and being done leading up to election makes it even more sus.

 

There's been many times in history when gas prices were worse (adjusted for inflation) and cars consumed more back then than now on top of that and the SPR were not drained as heavily as now 

 

There's still enough in it tho for short term emergencies if there was a major disruption so hardly the end of the world... Republicans are playing politics too by over dramatizing it.

 

But I don't totally disagree either in this case even if they are blowing it out of proportion 

 

[Economy 52,842]

@StarstruckIllusion I'm curious about ur LMAO reaction. 

 

Not criticism, I like our discussions and I'm curious what ur thinking

[StarstruckIllusion 53,563]

Lmao they’re just mad he’s actually beating their early midterm wedge issue of “Biden’s why your gas is high.” Inflation is a WW problem but government is supposed to find extraordinary ways to help ease the pain if they can (like this). If Republicans actually cared about SPR abuse, they should tell their OPEC buddies (Saudi govt.) to reverse their recent move to limit oil supply right before the midterms… which I’m pretty sure they did just to hurt Biden. (They get more from the US when the right’s in power)

2 minutes ago, Economy said:

@StarstruckIllusion I'm curious about ur LMAO reaction. 

 

Not criticism, I like our discussions and I'm curious what ur thinking

Plsss the way I started typing this before you even mentioned me. I just have to laugh at republicans… they’re so devious. I’m glad Biden’s above it on this issue

[Economy 52,842]

7 minutes ago, StarstruckIllusion said:

Lmao they’re just mad he’s actually beating their early midterm wedge issue of “Biden’s why your gas is high.” Inflation is a WW problem but government is supposed to find extraordinary ways to help ease the pain if they can (like this). If Republicans actually cared about SPR abuse, they should tell their OPEC buddies (Saudi govt.) to reverse their recent move to limit oil supply right before the midterms… which I’m pretty sure they did just to hurt Biden. (They get more from the US when the right’s in power)

What OPEC did is definitely bad but I think it's a somewhat seperate issue. They increase and cut production all the time. We don't mess with SPR everytime they do even when it makes our lives difficult.

 

In 2008 the oil and gas situation was much more dire than today and we never released amounts even close to this

 

I think the point about inflation is a valid argument. It may not be extraordinary circumstances in terms of energy security or in terms of an "emergency" but it is unusual circumstances in terms of inflation and lower oil prices would definitely help

 

That being said I still don't know if it quite justifies this release or not. But since there's still quite a bit left in it I guess it isn't that big of a deal anyway provided he doesn't release more past November.

 

Also I must point out I feel like if say Trump hypothetically did the same stunt leading up to elections and the Democrats wrote this letter for him to explain himself even if the circumstances were exactly the same, everyone would be reacting with a "like" or a "yazzzz" instead of LMAO I'm quite positive about that

 

So ppl are obviously biased because it's the Republicans raising the criticism line that in itself automatically makes it laughable

[StarstruckIllusion 53,563]

Just now, Economy said:

What OPEC did is definitely bad but I think it's a somewhat seperate issue. They increase and cut production all the time. We don't mess with SPR everytime they do

 

I think the point about inflation is a valid argument. It may not be extraordinary circumstances in terms of energy security or in terms of an "emergency" but it is unusual circumstances in terms of inflation and lower oil prices would definitely help

 

That being said I still don't know if it quite justifies this release or not. But since there's still quite a bit left in it I guess it isn't that big of a deal anyway provided he doesn't release more past November.

 

Also I must point out I feel like if say Trump hypothetically did the same stunt leading up to elections and the Democrats wrote this letter for him to explain himself even if the circumstances were exactly the same, everyone would be reacting with a "like" or a "yazzzz" instead of LMAO I'm quite positive about that

 

So ppl are obviously biased because it's the Republicans raising the criticism line that in itself automatically makes it laughable

No you’re right, and Biden had to be pressured to use the SPR (which started by activists in the spring I believe), but he did and its a new phenomenon. This inflation is sort of an emergency so I think this was a smart move bc it actually worked. It’s a bandaid tho. I haven’t heard of this is happening or not, but I hope the UN are getting together on ways to tackle the supply chains, price fixing and many more, bc at this rate, the SPR can’t save Americans forever.
 

And about the politics… I honestly used to think doing extra things before midterms is bad (and I still think good things should constantly happen, and for a while they weren’t bc of BBB tanking), but things are just so… existential. With political memories being historically short, Dark Brandon couldn’t have come at a better time. If the republicans do something similar before the midterms, fair game. It’s just a smart strat (that I’ll still be mad at bc no they’re a clown show)

[Nemo 4,410]

It's just "Energy Secretary". There's no "Energy Security Secretary".

[Economy 52,842]

7 minutes ago, StarstruckIllusion said:

No you’re right, and Biden had to be pressured to use the SPR (which started by activists in the spring I believe), but he did and its a new phenomenon. This inflation is sort of an emergency so I think this was a smart move bc it actually worked. It’s a bandaid tho. I haven’t heard of this is happening or not, but I hope the UN are getting together on ways to tackle the supply chains, price fixing and many more, bc at this rate, the SPR can’t save Americans forever.
 

And about the politics… I honestly used to think doing extra things before midterms is bad (and I still think good things should constantly happen, and for a while they weren’t bc of BBB tanking), but things are just so… existential. With political memories being historically short, Dark Brandon couldn’t have come at a better time. If the republicans do something similar before the midterms, fair game. It’s just a smart strat (that I’ll still be mad at bc no they’re a clown show)

I guess I can at least agree with u about the inflation situation part of it. In that sense it helps. And it's the only reason I'm not TOTALLY against it even if low-key there's a part of me that debates whether the circumstances were extenuating enough to warrant an energy release or not.

 

Oil prices and oil inventories and energy security are not at at an unusually bad situation (just a little worse than average). But from an economic perspective the inflation situation is definitely unique since the early 1980s.

 

I do hope he doesn't give in to part 2 of ppls demands tho (that he ban oil exports)... There's reasons why that may actually make the situation worse but ppl who don't look at the finer details oversimplify the situation as usual

[Economy 52,842]

Just now, Nemo said:

It's just "Energy Secretary". There's no "Energy Security Secretary".

Sorry. I read it quickly and I read that wrong. I will fix it!

[StarstruckIllusion 53,563]

1 minute ago, Economy said:

I guess I can at least agree with u about the inflation situation part of it. In that sense it helps. And it's the only reason I'm not TOTALLY against it even if low-key there's a part of me that debates whether the circumstances were extenuating enough to warrant an energy release or not.

 

I do hope he doesn't give in to part 2 of ppls demands tho (that he ban oil exports)... There's reasons why that may actually make the situation worse but ppl who don't look at the finer details oversimplify the situation as usual

Maybe I’m not more conflicted on it bc I’m not knowledgeable of what more serious uses the SPR can be used for. I know they exist… and I respect that, but I’m not an expert. 

I haven’t heard much on banning oil exports but that does sound bad and extremely chaotic on the face of it…

[AsleepOnTheCeiling 6,939]

24 minutes ago, Economy said:

What OPEC did is definitely bad but I think it's a somewhat seperate issue. They increase and cut production all the time. We don't mess with SPR everytime they do even when it makes our lives difficult.

 

In 2008 the oil and gas situation was much more dire than today and we never released amounts even close to this

 

I think the point about inflation is a valid argument. It may not be extraordinary circumstances in terms of energy security or in terms of an "emergency" but it is unusual circumstances in terms of inflation and lower oil prices would definitely help

 

That being said I still don't know if it quite justifies this release or not. But since there's still quite a bit left in it I guess it isn't that big of a deal anyway provided he doesn't release more past November.

 

Also I must point out I feel like if say Trump hypothetically did the same stunt leading up to elections and the Democrats wrote this letter for him to explain himself even if the circumstances were exactly the same, everyone would be reacting with a "like" or a "yazzzz" instead of LMAO I'm quite positive about that

 

So ppl are obviously biased because it's the Republicans raising the criticism line that in itself automatically makes it laughable

2008 also had 20 million less cars on the road. Census data is showing that in 2019 average commute times were at 27 minutes while in 2006 they were around 24 minutes. KBB reports that the average sedan is 13 years old while the average truck is 11 years old. So although we're now seeing great MPG rates on new vehicles, the average American is still getting the 2009-2011 standard. Personally I went from $40/week in gas costs to $70/week, and that's in a 2020 crossover. 

[AsleepOnTheCeiling 6,939]

8 minutes ago, StarstruckIllusion said:

Maybe I’m not more conflicted on it bc I’m not knowledgeable of what more serious uses the SPR can be used for. I know they exist… and I respect that, but I’m not an expert. 

I haven’t heard much on banning oil exports but that does sound bad and extremely chaotic on the face of it…

I'd imagine if we were in a Germany/Russia situation where oil supply is cut off. But if we've kept the reserve steady for 30 years, then I don't see why we can't use it now. Additionally, if we do fall into a recession as previously predicted, the government should be able to bring reserve levels back up swiftly while also stabilizing prices some. 

[Economy 52,842]

36 minutes ago, StarstruckIllusion said:

Maybe I’m not more conflicted on it bc I’m not knowledgeable of what more serious uses the SPR can be used for. I know they exist… and I respect that, but I’m not an expert. 

I haven’t heard much on banning oil exports but that does sound bad and extremely chaotic on the face of it…

The idea behind banning oil exports is to lower prices for Americans rather having producers sell it to the highest bidder

 

Oil exports were indeed banned until 2014 or 2015 (something like that I forget the exact year). But there's a reason it was finally lifted. It was starting to do way more harm than good once US production started surging because of Shale Production

 

The problem is Oil was getting stuck in a glut. Oil is not all the same. Some Oil is heavier, some medium, some higher in sulfur and some light. There's many blends. Refineries can't process just any kind. They have to be retrofitted to use specific kinds

 

US Shale is mainly light oil, but US refineries can't process it all because they were made to refine heavier crude from Canada, Saudi Arabia and Venezuela for example. There was a big discount on WTI American oil to international blends because a glut was forming and couldn't leave

 

This not only hurt US oil producers but it didn't help American consumers either. Gasoline and other refined products still traded at international prices which Americans still payed. The only ones that profited were the Refineries that did have the capacity to refine that surplus oil

 

Lifting the ban allowed the oil to be sold where it can actually be processed properly benefiting US producers but it didn't really affect retail prices much

 

Banning it again would bring these supply chain issues in oil again which is the last thing we need right now. But many ppl aren't aware of how complex the oil market actually is so they support this

 

I heard Anna from the young Turks some weeks ago talk in support of it and from the way she spoke I got the impression she thinks Oil is just Oil and that something as simple as a ban would lower prices. And it shows some higher profile ppl are promoting the idea

 

But oil is not all the same and most of the Oil America produces gas to be exported because Americas own refineries network don't have the full capacity to process all of that grade of oil. Some of it would end up stuck in a glut again unused by refineries just sitting in storage

[Economy 52,842]

15 minutes ago, TortureMeOnReplay said:

2008 also had 20 million less cars on the road. Census data is showing that in 2019 average commute times were at 27 minutes while in 2006 they were around 24 minutes. KBB reports that the average sedan is 13 years old while the average truck is 11 years old. So although we're now seeing great MPG rates on new vehicles, the average American is still getting the 2009-2011 standard. Personally I went from $40/week in gas costs to $70/week, and that's in a 2020 crossover. 

Number of cars I don't think is relevant to each person cuz that probably just reflects population growth I'd assume.

 

Also about the mileage, back in 2009/2011 they would of had like a 2000 standard

 

Don't forget at no point in recent decades was the average person driving almost brand new cars. Average milage would only be the same as in 2011 if everyone owned a brand new car then, and then no one bought a new car since.

 

Obviously there's a lag of several years cuz of old cars on the road, but the lag applies always. It applied back in 2009 to 2011 also

 

So ppls milage should still have improved since then

 

And even if it hadn't. Like I said, prices were far higher in 2008 especially when u adjust for inflation

 

Prices rn are above average but not even close to records

 

Edit: but yeah from 2020 to now ur going from one extreme to the other. I bought a car that consumed almost only half last year and I'm spending almost as much as in 2020 still

 

 

[Economy 52,842]

29 minutes ago, TortureMeOnReplay said:

I'd imagine if we were in a Germany/Russia situation where oil supply is cut off. But if we've kept the reserve steady for 30 years, then I don't see why we can't use it now. Additionally, if we do fall into a recession as previously predicted, the government should be able to bring reserve levels back up swiftly while also stabilizing prices some. 

Prices probably wouldn't tumble as much as many might think unless the recession turned out to be very severe

 

The market is still tight. Not much looser than months ago when oil hit $130/barrel (although that price was also exagerated because of Russia Fears)

 

The main reason it has fallen as much as it has is because #1 the SPR Release which they can't do forever and #2 because since a recession is so anticipated and feared, the market is largely already pricing in that outcome which means if it actually does occur the fall in prices will probably be modest not that substantial. Most recessions don't result in big pullbacks in oil consumption either, only the most severe ones. Most recessions only slow down the rate of increase or freeze it. If there is a contraction it's usually small and short lived

 

But I somewhat agree with the part why not use it. There was a lot in it and inflation is high so it helps.

 

But I'm not sure I agree about prices falling much in a recession just cuz it's so priced in already