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Why the US stores 700M barrels of oil underground

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Re: Why the US stores 700M barrels of oil underground

#81

Post by hueving »

ci5er wrote: post #75
falsestprophet wrote: post #74

Earlier quoted context omitted.

"And this is why everyone needs a big slug of dollars in their respective reserves - to buy oil." This petrodollar conspiracy is baffling. Countries don't hold dollars solely to buy oil. The oil and gas industry is only about 4.6% to 6.5% of the global economy. Countries hold reserve currencies to manage the exchange rate of their currency. Petrodollar conspiracists would be well served by learning about foreign exch…

OK. So let's just truncate all of that and directly answer the question by saying that when the dollar is strong it takes fewer of them to buy any particular amount of a commodity that is priced in dollars.

The dollar didn't more than double in value like it would be required to halve the price of oil.

Re: Why the US stores 700M barrels of oil underground

#82

Post by coldcode »

3princip wrote: post #4

>largest of the four, near the tiny city of Freetown, Texas A little weird that I cannot find a "Freetown, Texas" using Google. I like to look at places on a map when they are mentioned in articles. Maybe they got the name wrong, or is it so small it's not on the map? Or I'm using Google wrong :)

Freetown I believe is the capital of Sierra Leone.

Re: Why the US stores 700M barrels of oil underground

#83

Post by DinkyG »

drzaiusapelord wrote: post #64
steve19 wrote: post #12

Earlier quoted context omitted.

Not just clickbaity but factually incorrect. There are right there for everyone to see (from Google Maps) ... https://www.google.com/maps/place/Bryan+Mound+Strategic+Petr...

It has its own webpage at the DOE. Some secret. Sadly, HN often falls for click-baity articles with an anti-US or conspiratorial spin to them. http://energy.gov/fe/services/petroleum-reserves/strategic-p...

There's no shortage of conspiratorial comments and posts about Russia and China on HN either. There's something about conspiracies which captures our imagination but there needs to at least be some basis in the facts.

Re: Why the US stores 700M barrels of oil underground

#84

Post by PhasmaFelis »

drzaiusapelord wrote: post #49
Spooky23 wrote: post #35

Earlier quoted context omitted.

Well, yeah. They are "strategic" after all, which is a word that is meaningful in the global political sense. Consider that strategic weapons are the ones that could destroy life on earth.

This. I don't know why people think the US should be in love with every anti-US regime and any attempt to hurt that regime is suddenly "OMG EVIL USA" when we see the same realpolitik everywhere else without protest. Most well off nations have strategic reserves of things, offensive trade policies, protectionist economic policies, etc that can be used offensively. How many sanctions, targeted import taxes, bans, and t…

> I don't know why people think the US should be in love with every anti-US regime and any attempt to hurt that regime is suddenly "OMG EVIL USA" when we see the same realpolitik everywhere else without protest.

You may have heard the phrase "two wrongs don't make a right."

Re: Why the US stores 700M barrels of oil underground

#85

Post by dudus »

logfromblammo wrote: post #58
drzaiusapelord wrote: post #49

Earlier quoted context omitted.

This. I don't know why people think the US should be in love with every anti-US regime and any attempt to hurt that regime is suddenly "OMG EVIL USA" when we see the same realpolitik everywhere else without protest. Most well off nations have strategic reserves of things, offensive trade policies, protectionist economic policies, etc that can be used offensively. How many sanctions, targeted import taxes, bans, and t…

Canada has had a strategic maple syrup reserve since 2000. It hit the news when someone stole $30000 worth of the sweet stuff from it. It's basically there to both protect Canada's domestic syrup producers and extend the sales market internationally. You can bet your tuque that the reserve would be put into play if New England syrup producers made a move that might hurt the Quebec producers across the border.

I'll never forget the Gawker article on it.

It was actually worth $30 Million

http://gawker.com/we-gave-canada-one-job-dont-lose-all-the-m...

My favourite quote:

""" The Federation of Québec Maple Syrup Producers (three magical elves) noticed that the syrup was missing during a routine inspection of the warehouse, which is maintained as part of the world's "global strategic maple syrup reserve." """

Re: Why the US stores 700M barrels of oil underground

#86

Post by Synaesthesia »

cylinder wrote: post #40
Synaesthesia wrote: post #17

Earlier quoted context omitted.

It's certainly not beyond conception! As Assange mentioned in this interview, a wikileaks cable showed how the US departments all work together to achieve a Foreign Policy aim, for example when a a country needs to be isolated by the they work together to apply pressure in the economic, diplomatic, military and public relations realm. https://www.youtube.com/watch?v=W3HWiydFlJc

And why shouldn't they cooperate together?

No, nothing wrong with that, but there is sometimes a perception that there is some competition between the branches of government, or a conflict of interest.

Re: Why the US stores 700M barrels of oil underground

#87

Post by fredgrott »

ci5er wrote: post #73
JTon wrote: post #71

Earlier quoted context omitted.

How exactly does a strong USD decrease the price of oil?

Oil contracts and futures are priced in USD. This is what the phrase "Petro-dollar" refers to. And this is why everyone needs a big slug of dollars in their respective reserves - to buy oil. This scheme as been pretty good for the US, but other players are not quite so enamored with it. When the dollar is strong, it takes fewer of them to buy a barrel of oil. ITT there is a lot of talk about the production side of th…

but that is only due to one important thing...

The US defense of Saudi Arabia has a requirement that Saudi sell oil in US dollars..

Re: Why the US stores 700M barrels of oil underground

#88

Post by scott_karana »

Not entirely related to the US supplies, but did this stand out to anyone else?

> The facility at Shibushi, for example is just off-shore. Following the catastrophic earthquake and tsunami which struck Japan in 2011, calls were made to expand the country’s oil stocks in case of crises in the future which might hamper oil distribution again.

One of the most volcanically and tidally affected and nautically food-dependent nations on earth thinks it's a good idea to hold millions of barrels of oil on their coastlines?!

Re: Why the US stores 700M barrels of oil underground

#89

Post by irl_zebra »

olewhalehunter wrote: post #18
Toenex wrote: post #13

Earlier quoted context omitted.

Or 1 million of our brave, cyborg killing, wind powered, polymer constructed, automated freedom fighters.

Or infinite eons of entropic sex toys for the post eschaton neuro-orgey.

Please don't try to turn this place into Reddit with comment chains like this...

Re: Why the US stores 700M barrels of oil underground

#90

Post by elektromekatron »

rancur wrote: post #78
Lawtonfogle wrote: post #67

Earlier quoted context omitted.

Why not both? Gives a better reason for the Saudi's to go along with the plan. They help the US political side and get paid in political good will and getting to damage the US competitors.

because we don't care that much about Russia. This isn't the 80's. OPEC got greedy, that created room for shale, and Russia got hurt.

Hello, there's a fairly warm little proxy war going down right now in Ukraine and an increase in Russian forces in Syria. The 80's were the nice hopeful bit.
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