Trump budget wants to halve oil stockpile, open Arctic refuge to drilling
38 replies, posted
[QUOTE=BF;52266446]It would temporarily flood the market with supply, as suddenly there is much more oil for sale to buyers. The effect would be downwards pressure on oil prices.[/QUOTE]
Over 10years though, it would definitely swing the other way.
[QUOTE=AnnieOakley;52266668]Sr. or Jr.?[/QUOTE]
Both at the same time
[QUOTE=Big Dumb American;52266358]Won't selling off half our oil reserves reduce supply and thus increase the cost of oil and gasoline for consumers? Seems like the only people who benefit from this plan are the oil companies.[/QUOTE]
Almost like the ceo of exxon mobil is our secretary of state
[QUOTE=BF;52266446]It would temporarily flood the market with supply, as suddenly there is much more oil for sale to buyers. The effect would be downwards pressure on oil prices.[/QUOTE]
It would almost certainly be exported -- that oil wouldn't touch domestic markets. In that scenario, it seems US consumer oil prices would almost certainly rise.
[QUOTE=Bradyns;52266688]Over 10years though, it would definitely swing the other way.[/QUOTE]
In the sense that there will be less oil in the world, I agree. However, US still has far more oil than anyone else for the time being, and there's no telling how much we have left to discover in the Pacific and up north. All in all I'd say it's pretty damn hard to call the oil market in any one way--over a year ago I thought we'd be sub-$40 by Q3 2017, but it's still $50+ with a little over a month left to go. It's just too volatile.
This is one reason why I think it's such a bad idea to be selling out of our oil reserves right now. At our current level we'd only be able to sustain ourselves for about six or seven months on the reserves IIRC, just barely long enough to outrun a minuscule economic slump. As one of the biggest, most diverse, and most heavily leveraged economies in the universe, we're not prone to just "minuscule slumps." Now is the time to be expanding our reserves and preparing for the Saudis' to collapse, not trying to speed up the process by gambling our short-term economic security for long term exploratory gains. US domestic production can sustain itself just fine without dipping into what is supposed to be an emergency fund.
I'm seeing a lot of this sort of rosy outlook in the administration's plans for the economy as of late, and I'm not liking it. I certainly hope things turn out as well as the President seems to expect, or else we might just be setting ourselves up for an otherwise all-too-easily-avoidable downturn.
[QUOTE=FreakyMe;52265742]It's so good to know that after Trump, nothing will be left.
Global famine will reign supreme while the 1% hide in their fallout shelters, letting the world die for their sins.[/QUOTE]
It's their own damn fault for voting for these shitheads who pride themselves in their anti-intellectualism and promoted ignorance.
[QUOTE=J!NX;52265047]I legitimately wish we would just completely run out of oil at this point
Regardless of the impact it'd have it would seriously be better off in the long run[/QUOTE]
we just need to stop using it for moving things around and burning it for power. we would have enough oil for manufacturing for centuries if we just used oil for just that.
[QUOTE=Chonch;52266840]In the sense that there will be less oil in the world, I agree. However, US still has far more oil than anyone else for the time being, and there's no telling how much we have left to discover in the Pacific and up north. All in all I'd say it's pretty damn hard to call the oil market in any one way--over a year ago I thought we'd be sub-$40 by Q3 2017, but it's still $50+ with a little over a month left to go. It's just too volatile.
This is one reason why I think it's such a bad idea to be selling out of our oil reserves right now. At our current level we'd only be able to sustain ourselves for about six or seven months on the reserves IIRC, just barely long enough to outrun a minuscule economic slump. As one of the biggest, most diverse, and most heavily leveraged economies in the universe, we're not prone to just "minuscule slumps." Now is the time to be expanding our reserves and preparing for the Saudis' to collapse, not trying to speed up the process by gambling our short-term economic security for long term exploratory gains. US domestic production can sustain itself just fine without dipping into what is supposed to be an emergency fund.
I'm seeing a lot of this sort of rosy outlook in the administration's plans for the economy as of late, and I'm not liking it. I certainly hope things turn out as well as the President seems to expect, or else we might just be setting ourselves up for an otherwise all-too-easily-avoidable downturn.[/QUOTE]
I just want to say thank you for criticizing Trump.
[QUOTE=BF;52266446]It would temporarily flood the market with supply, as suddenly there is much more oil for sale to buyers. The effect would be downwards pressure on oil prices.[/QUOTE]
for a relatively short time. the government usually sells off oil reserves only durring major events like when natural disasters hit such as katrina and thats to keep oil prices stable. releasing it during normal times has always been just a way for conservatives to pay their friends off, all the way back to teapot-dome in the 20s
also i can't believe we've gone so full circle that anyone is for this when its literally been a presidential scandal before, a republican presidential scandal to boot
Sorry, you need to Log In to post a reply to this thread.