I remember reading a post concerning all the problems that would be involved in using the Strategic Oil Reserves, from transport to refining it, etc., but just cannot locate it. Was it part of one of the longer threads on oil? Or does anyone else recall where I might locate this post/article? Thanks.

-- rumdoodles (rumdoodles@yahoo.com), December 05, 1999

Answers

can't help with the post exactly, but as far as the usage of oil reserves and the price per barrell etc. you should visit IEA.org and find out that the US is a member nation and under their aggreement even who we sell our reserves to(ourselves included) are covered under which member nation is in most need, and the price is fixed by the aggreement with other members. Interestingly enough, look at who is a member and who is not.

-- terry (tmcmi@alltel.net), December 05, 1999.

This isn't the one you're looking for, but thought it might be helpful:

http://www.intl-monito ring.com/crude.htm

The problem not mentioned in this article is that the United States only has 570 million barrels in reserve, enough for 28 days at current consumption rates.

Does anyone know if part of the reserves has to be "reserved" for military needs, or do they already have their own supply?

Well, in any event, what will happen if there are even just some minor delays in getting our normal supply? Can we afford to be sitting on our reserves until January 1 to wait and see what happens? The way I see it, if we do it will be too late!!

Let's assume that our refineries are capable of refining the oil in our reserves after January 1 (a very generous assumption in my view).

They tell us it will take minimum 15 days from when Clinton decides to use the reserves, just to "move the oil into the market."

Now, this article says our imported oil could be delayed by up to 23 days.

Doesn't it seem like the wise thing to do would be to give the go ahead to start refining our reserves RIGHT NOW, since it will be 15 days minimum before they even start refining?

From what I see, our current approach of waiting to act until January 1 almost guarantees disastrous shortages of refined gasoline.

-- Hawk (flyin@high.again), December 05, 1999.

Here's that quote about our reserves:

""Once the president decides a drawdown of the SPR is necessary, then from the time he makes that decision until the time we move oil into the market can be as short as 15 days," Porter said."

Wouldn't it be wise to start refining some of it now, while the refineries are still functioning, rather than wait until January when they are likely to have malfunctions?

Maybe part of the problem is we simply don't have any more storage capacity for the gasoline???

-- Hawk (flyin@high.again), December 05, 1999.

Hawk,

All refineries are running flat out, with the exception of maintenance turnarounds. It dosen't matter if its SPR crude or not. There's no idle capacity to kick in with the exception of older smaller refineries that were shut down years ago because of efficiency and/or environmental reasons. This is what people don't realize on oil markets. There's no spare refining capacity, and there's very little spare crude production capacity. This is why operational problems create such big price advances-higher prices don't encourage incremental supply.

-- Downstreamer (downstream@bigfoot.com), December 05, 1999.

If there is any doubt in anyone's mind that there won't be a gas shortage,then read this.

http://www.garynorth.com/y2k/detail_.cfm/6946

This is taken from Platts Oil Gram Price report (Nov.22)

______________________________________________________________________

The US Department of Energy is in the process of finishing a detailed plan to release crude from the Strategic Petroleum Reserve should computer glitches as a resulst of the year 2000 rollover cause supply disribution problems.

Sources close to the planning process concede a consences has deveoped that a release of crude from the reserve will be necessary early next year because of exspected Y2K problems with foreign suppliers, somewhere in the supply chain,from the well_head to the loading port.

Under US law,the 563 million bbl SPR can be used solely for the purpose of responding to "severe oil supply interruptions"....

---------------------------------------------------------------------

Read the last line again,it couldn't be any plainer!

-- Maggie (song bird@iwon.com), December 05, 1999.

Thanks Downstreamer and Maggie. Yes, that makes sense that we are already cranking out at full capacity.

My guess would be that if the refineries are not able to fix any breakdowns and get back to full-out production capacity by the second week of January, rationing will almost certainly have to be implemented.

-- Hawk (flyin@high.again), December 05, 1999.

In my opinion,one of the best articles posted by RC June 21 1999

Oil and natural gas: are they the real problems in Y2K?

http://www.greenspun.com/bboard/q-and-a-fetch-msg.tcl?msg_id=oo1rsT

or id=001rsT

-- Maggie (song bird@iwon.com), December 05, 1999.