strategic petroleum reserves

Shocking fact about Iran oil embargo consequences

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Without question, if I knew that a disruption of oil supplies from Iran would occur, I’d bet the farm on a dramatic rise in crude oil prices.  But how rationale is this popular consensus opinion?  I quote from Daniel Yergins, The Quest: Energy, Security, and the Remaking of  the Modern World. “Currently, IEA nations have about 1.5 billion barrels of public stocks, of which about 700 million barrels are in the U.S. Strategic Petroleum Reserve. Were Iranian exports to disappear from the market, the 1.5 billion could compensate for the shortfall for more than two years.” So rationale expectations and … Read more

When Bill Clinton released oil from strategic reserves in 2000,oil was a whopping $40 a barrel

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The last time the US decided to embark on a major program to release oil from the Strategic Petroleum Reserve was in 2000, when President Bill Clinton, concerned about the price of oil going into the winter, opened up the spigots.  The headlines from September 22, 2000 read “On the surface, the move looks defensible. Oil prices had soared to nearly $40 a barrel, up from $10 two years ago. America’s heating-oil stocks are indeed at perilously low levels. The first reactions overseas were favourable. European governments, just recovering from tumultuous protests over petrol prices, voiced their support. Even some … Read more