30,000,000 Barrels of Oil
“Wary of a new surge in gas prices, the Obama administration … is selling off 30 million barrels of oil from the country’s emergency reserves as a part of a broader internal response to lost oil supplies caused by turmoil in the Middle East and North Africa, particularly Libya. The release from the U.S. Strategic Petroleum Reserve will be the largest ever, amounting to half of a 60 million-barrel international infusion of oil planned for the world market over the next month.”
My immediate response is “bravo” to President Obama for doing his best to keep an eye on the energy issues that we are facing here as Americans (see previous “Fuel For Thought” blog, April 2011).
But …
Will taking these types of actions help America pay less at the pump and help the economy, or will it just ease the tension temporarily and relax our pursuit of American energy security?
Did you notice that this release is the “largest ever” and amounts to “half of a 60 million-barrel… infusion for the world market”?
I want to make sure I’m translating this correctly (and I hope I’m wrong). This news may be the most startling admission of our energy dependence. Let’s break it down:
- Americans (that means you and me) import 11 million barrels a day from the Middle East. That’s a known fact.
- 30 million barrels represents the largest release EVER by America, and it only covers us for a little over two—that’s right—two days.
- This is a part of world-market collaboration, yet this largest release even — including every effort from everyone else — only nets an additional 30 million barrels. That means the entire effort from the rest of the world (excluding the Middle East) will cover us for six—that’s right—six days.
Now, I know we didn’t deplete the reserves. Reports state that there are 727 million barrels still remaining in storage. The math on that will take us out about another 66 days.
On a side note (and if you like to connect dots, this will be your favorite part), America exports two billion gallons of propane per year. With new natural gas discoveries, that amount is projected to be three billion by this time next year.
Most of that propane export goes to South America. You know what they do with it? They use it as transportation fuel because it’s less expensive than gasoline and diesel and burns cleaner. Those South Americans are brilliant.
So here’s some fuel for thought. I think President Obama and Secretary Chu are working to do the right thing. They have our country’s best interest in mind, no question. However, this move is largely based on the fact that the potential adopters in North America haven’t deployed enough vehicles in their fleet to make a difference, yet. As a result, and as Rep. Doc Hastings (R-WA) puts it, “… [these types of decisions] have left the United States increasingly vulnerable to the whims of the world oil market…”
At some point, we need to accept the responsibility of making a difference ourselves and quit leaving it up to our leaders.
