BIDEN IS SELLING US PETROLIUM AND OIL RESERVES TO CHINA WHEN SHORTAGE OF OUR OWN SUPPLIES MAKES US ALL SUFFER
Oct 3, 2022 19:30:14 #
https://www.factcheck.org/2022/07/u-s-selling-oil-from-the-strategic-petroleum-reserve-to-the-highest-bidding-companies/
Why is the US selling stockpiled oil to China? We have answers
WE NEED TO ASK CONGRESS TO LEGISLATE IN ORDER TO STOP THIS DANGEROUS MOVE. US must have its own abundant oil supplies, not providing C*******t China who is taking over world power.
-----------------------------------
Louis Jacobson
By Louis Jacobson
July 11, 2022
IF YOUR TIME IS SHORT
• Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil from its strategic reserve to overseas companies.
• The reason: The U.S. government is obligated to find the highest possible price for assets that it sells, and sometimes U.S. companies aren’t able to handle more oil when the sale is held, leaving foreign companies to buy it.
• The oil market operates on a global level. Lower prices are the results of changes to supply and demand on a global basis, not just in the U.S.
Critics, including conservative media outlets, attacked President Joe Biden for selling oil from the Strategic Petroleum Reserve to a Chinese-owned company. Some of the coverage implies a connection between the sales and Chinese investments linked to Biden’s son H****r.
Experts in the international oil markets, however, told PolitiFact that the sales were governed by U.S. law, and they see no way that the Biden family could have influenced or benefited from the sales.
"It’s a political talking point, and a ridiculous one," said Patrick De Haan, a vice president with GasBuddy, which tracks gasoline prices.
We follow the facts and share what we learn so you can make your own decisions. Support our mission today.
What oil was sold?
The U.S. Strategic Petroleum Reserve dates from OPEC’s oil embargo in 1973 and 1974, when an oil price shock battered the U.S. economy. It was designed to diminish the vulnerability of the United States to energy supply interruptions, according to the Congressional Research Service.
The reserve has a capacity of more than 700 million barrels, stored in underground geological formations known as salt domes. The reserve encompasses four sites, two each in Louisiana and Texas.
Biden has authorized the sale of some of the reserve’s crude oil to counteract supply shortages, notably the West’s decision to cut back on Russian oil in the wake of its invasion of Ukraine. The process is done through a longstanding competitive bidding process, and whoever pays the most gets the oil.
One batch of oil, totaling 950,000 barrels, was sold on April 21 to Unipec America, a Houston-based, Chinese-owned company. Other batches of crude oil, amounting to about 4 million barrels, were sold to companies based in other countries.
What are the critics saying?
More than two months later, critics of Biden pounced. Fox News’ Tucker Carlson said Biden should be impeached for making the sale.
"So, as gas prices set records in this country, as American citizens who were born here and v**e and pay taxes cannot afford to fuel their own cars, the Biden administration is selling off our emergency oil reserves to China," Carlson said July 6. "That's not an indictable offense? It's certainly an impeachable one and they should impeach him for that."
Rep. Drew Ferguson, R-Ga., tweeted on July 7 that "Biden sending oil from the United States Strategic Petroleum Reserve overseas smells to high heaven. While Americans are paying record high prices at the pump, this administration decides to give our oil to the EU and China."
The conservative Washington Free Beacon quoted Daniel Turner — executive director of Power the Future, a pro-U.S. energy production group that targets "the radical environmental movement" — saying that the sale highlights the Biden family’s "relationship to China." The article said that H****r B***n is tied to Unipec’s parent company, Sinopec. "In 2015, a private equity firm (H****r B***n) co-founded bought a $1.7 billion stake in Sinopec Marketing," the article said.
As far as any role for H****r B***n, his lawyer, George Mesires, released a statement on Oct. 13, 2019, saying that H****r B***n would be resigning from the board of BHR, the investment company with business in China, without receiving any return on his investment or shareholder distributions. This would suggest no stake for H****r B***n in the 2022 sale to Unipec.
Why is the U.S. selling oil from the reserve to overseas companies?
Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil to overseas companies. But these experts offered a straightforward answer: That’s the law, and that’s how the international oil market works.
De Haan compared the longstanding Strategic Petroleum Reserve process to an "eBay auction for crude oil."
When an administration orders the release of oil from the Strategic Petroleum Reserve, "the Department of Energy puts out a notice of sale that alerts companies that oil will be made available for purchase," said Hugh Daigle, a professor in the University of Texas-Austin Department of Petroleum and Geosystems Engineering. "Companies then bid competitively on the oil, and the winning bidders receive the oil and the bid price." The winning company works out with the Energy Department when and how it will take possession of the oil.
Sometimes the winning bidders may be U.S. refiners, Daigle said, in which case the oil quickly boosts U.S. gasoline supplies. But in other cases, he said, foreign companies win the bid. This increases the supply of global crude oil and, eventually, helps lower prices in the United States.
The law does not bar foreign companies in good standing from competing in such auctions.
"Companies that wish to bid on the oil sale have to be registered with the Crude Oil Sales Offer Program through the Energy Department, and any company authorized to do business with the U.S. government can register for this," Daigle said. "In the case that a Chinese company submitted a winning bid, there is no restriction on the sale and delivery of oil to that company provided they are properly registered."
Sales to overseas companies typically account for a minority of the oil sold at Strategic Petroleum Reserve auctions. Calculations made for Agence France-Presse found that of 30 million barrels released from the reserve in June 2022, only about 5.35 million barrels were exported.
Why does the U.S. allow this to happen?
The oil market operates on a global level, especially since 2015, when the United States ended a ban on the export of U.S.-produced crude oil. This means that the main factors in lowering prices are changing global supply and global demand. Lower demand or greater supply reduces prices.
"The logic of allowing exports is that oil is largely fungible and globally priced," said Robert McNally, president of the Rapidan Energy Group. "So whether a barrel is refined in Louisiana or China or Italy doesn’t really matter from the perspective of the impact on domestic pump prices."
Requiring the oil to stay in the U.S. would be pointless and could be easily evaded, said Clark Williams-Derry, an energy finance analyst with the Institute for Energy Economics and Financial Analysis. An American company could buy oil at auction while selling the equivalent amount from its own reserves to a foreign country, he said.
"It’s not the same physical molecules, but the effects on U.S. and global markets would be essentially identical," Williams-Derry said.
It’s also worth noting that the company that buys oil from the reserve will need to have the ability to refine it. U.S. refiners are currently operating near capacity, and they may have special shortages in capacity for certain types of crude oil being offered from the reserve.
The international oil system, as constructed, is not necessarily "natural, inevitable, or morally commendable," since it is "mostly designed to work to the benefit of oil companies and traders," Williams-Derry said. But, he added, it’s the system we have. In that context, the auction of oil from the strategic reserve to the highest bidder accomplishes the policy goal of lowering oil prices.
==================
[i] [color=red][b]Changing the global supply is a wrong strategy when we sell US own oil reserves to C*******t Country like China. This poses a high national risk. US alone must have abundant supplies to lower our own price, but not supply the C*******t China.
Aside from the fact that China has been buying US LANDS and US Real Estates, they are also buying our Natural resources and oil reserves.
China almost own most parts of the world already. And Joe Biden is selling US assets to China most importantly our land and our natural resources. His wrong economic brain believes that when global oil supplies are abundant price of oil goes down. This is wrong! This Biden's decision is a national disaster, and a national security risks. [/color]
America, please be prepared to oust all democrats in Congress this Nov. 2022 in order to solve this immediate dangers around us. Biden must go. [/i]
Why is the US selling stockpiled oil to China? We have answers
WE NEED TO ASK CONGRESS TO LEGISLATE IN ORDER TO STOP THIS DANGEROUS MOVE. US must have its own abundant oil supplies, not providing C*******t China who is taking over world power.
-----------------------------------
Louis Jacobson
By Louis Jacobson
July 11, 2022
IF YOUR TIME IS SHORT
• Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil from its strategic reserve to overseas companies.
• The reason: The U.S. government is obligated to find the highest possible price for assets that it sells, and sometimes U.S. companies aren’t able to handle more oil when the sale is held, leaving foreign companies to buy it.
• The oil market operates on a global level. Lower prices are the results of changes to supply and demand on a global basis, not just in the U.S.
Critics, including conservative media outlets, attacked President Joe Biden for selling oil from the Strategic Petroleum Reserve to a Chinese-owned company. Some of the coverage implies a connection between the sales and Chinese investments linked to Biden’s son H****r.
Experts in the international oil markets, however, told PolitiFact that the sales were governed by U.S. law, and they see no way that the Biden family could have influenced or benefited from the sales.
"It’s a political talking point, and a ridiculous one," said Patrick De Haan, a vice president with GasBuddy, which tracks gasoline prices.
We follow the facts and share what we learn so you can make your own decisions. Support our mission today.
What oil was sold?
The U.S. Strategic Petroleum Reserve dates from OPEC’s oil embargo in 1973 and 1974, when an oil price shock battered the U.S. economy. It was designed to diminish the vulnerability of the United States to energy supply interruptions, according to the Congressional Research Service.
The reserve has a capacity of more than 700 million barrels, stored in underground geological formations known as salt domes. The reserve encompasses four sites, two each in Louisiana and Texas.
Biden has authorized the sale of some of the reserve’s crude oil to counteract supply shortages, notably the West’s decision to cut back on Russian oil in the wake of its invasion of Ukraine. The process is done through a longstanding competitive bidding process, and whoever pays the most gets the oil.
One batch of oil, totaling 950,000 barrels, was sold on April 21 to Unipec America, a Houston-based, Chinese-owned company. Other batches of crude oil, amounting to about 4 million barrels, were sold to companies based in other countries.
What are the critics saying?
More than two months later, critics of Biden pounced. Fox News’ Tucker Carlson said Biden should be impeached for making the sale.
"So, as gas prices set records in this country, as American citizens who were born here and v**e and pay taxes cannot afford to fuel their own cars, the Biden administration is selling off our emergency oil reserves to China," Carlson said July 6. "That's not an indictable offense? It's certainly an impeachable one and they should impeach him for that."
Rep. Drew Ferguson, R-Ga., tweeted on July 7 that "Biden sending oil from the United States Strategic Petroleum Reserve overseas smells to high heaven. While Americans are paying record high prices at the pump, this administration decides to give our oil to the EU and China."
The conservative Washington Free Beacon quoted Daniel Turner — executive director of Power the Future, a pro-U.S. energy production group that targets "the radical environmental movement" — saying that the sale highlights the Biden family’s "relationship to China." The article said that H****r B***n is tied to Unipec’s parent company, Sinopec. "In 2015, a private equity firm (H****r B***n) co-founded bought a $1.7 billion stake in Sinopec Marketing," the article said.
As far as any role for H****r B***n, his lawyer, George Mesires, released a statement on Oct. 13, 2019, saying that H****r B***n would be resigning from the board of BHR, the investment company with business in China, without receiving any return on his investment or shareholder distributions. This would suggest no stake for H****r B***n in the 2022 sale to Unipec.
Why is the U.S. selling oil from the reserve to overseas companies?
Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil to overseas companies. But these experts offered a straightforward answer: That’s the law, and that’s how the international oil market works.
De Haan compared the longstanding Strategic Petroleum Reserve process to an "eBay auction for crude oil."
When an administration orders the release of oil from the Strategic Petroleum Reserve, "the Department of Energy puts out a notice of sale that alerts companies that oil will be made available for purchase," said Hugh Daigle, a professor in the University of Texas-Austin Department of Petroleum and Geosystems Engineering. "Companies then bid competitively on the oil, and the winning bidders receive the oil and the bid price." The winning company works out with the Energy Department when and how it will take possession of the oil.
Sometimes the winning bidders may be U.S. refiners, Daigle said, in which case the oil quickly boosts U.S. gasoline supplies. But in other cases, he said, foreign companies win the bid. This increases the supply of global crude oil and, eventually, helps lower prices in the United States.
The law does not bar foreign companies in good standing from competing in such auctions.
"Companies that wish to bid on the oil sale have to be registered with the Crude Oil Sales Offer Program through the Energy Department, and any company authorized to do business with the U.S. government can register for this," Daigle said. "In the case that a Chinese company submitted a winning bid, there is no restriction on the sale and delivery of oil to that company provided they are properly registered."
Sales to overseas companies typically account for a minority of the oil sold at Strategic Petroleum Reserve auctions. Calculations made for Agence France-Presse found that of 30 million barrels released from the reserve in June 2022, only about 5.35 million barrels were exported.
Why does the U.S. allow this to happen?
The oil market operates on a global level, especially since 2015, when the United States ended a ban on the export of U.S.-produced crude oil. This means that the main factors in lowering prices are changing global supply and global demand. Lower demand or greater supply reduces prices.
"The logic of allowing exports is that oil is largely fungible and globally priced," said Robert McNally, president of the Rapidan Energy Group. "So whether a barrel is refined in Louisiana or China or Italy doesn’t really matter from the perspective of the impact on domestic pump prices."
Requiring the oil to stay in the U.S. would be pointless and could be easily evaded, said Clark Williams-Derry, an energy finance analyst with the Institute for Energy Economics and Financial Analysis. An American company could buy oil at auction while selling the equivalent amount from its own reserves to a foreign country, he said.
"It’s not the same physical molecules, but the effects on U.S. and global markets would be essentially identical," Williams-Derry said.
It’s also worth noting that the company that buys oil from the reserve will need to have the ability to refine it. U.S. refiners are currently operating near capacity, and they may have special shortages in capacity for certain types of crude oil being offered from the reserve.
The international oil system, as constructed, is not necessarily "natural, inevitable, or morally commendable," since it is "mostly designed to work to the benefit of oil companies and traders," Williams-Derry said. But, he added, it’s the system we have. In that context, the auction of oil from the strategic reserve to the highest bidder accomplishes the policy goal of lowering oil prices.
==================
[i] [color=red][b]Changing the global supply is a wrong strategy when we sell US own oil reserves to C*******t Country like China. This poses a high national risk. US alone must have abundant supplies to lower our own price, but not supply the C*******t China.
Aside from the fact that China has been buying US LANDS and US Real Estates, they are also buying our Natural resources and oil reserves.
China almost own most parts of the world already. And Joe Biden is selling US assets to China most importantly our land and our natural resources. His wrong economic brain believes that when global oil supplies are abundant price of oil goes down. This is wrong! This Biden's decision is a national disaster, and a national security risks. [/color]
America, please be prepared to oust all democrats in Congress this Nov. 2022 in order to solve this immediate dangers around us. Biden must go. [/i]
Oct 3, 2022 20:04:29 #
[quote=Radiance3]https://www.factcheck.org/2022/07/u-s-selling-oil-from-the-strategic-petroleum-reserve-to-the-highest-bidding-companies/
Why is the US selling stockpiled oil to China? We have answers
WE NEED TO ASK CONGRESS TO LEGISLATE IN ORDER TO STOP THIS DANGEROUS MOVE. US must have its own abundant oil supplies, not providing C*******t China who is taking over world power. [/i]
-----------------------------------
Louis Jacobson
By Louis Jacobson
July 11, 2022
IF YOUR TIME IS SHORT
• Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil from its strategic reserve to overseas companies.
• The reason: The U.S. government is obligated to find the highest possible price for assets that it sells, and sometimes U.S. companies aren’t able to handle more oil when the sale is held, leaving foreign companies to buy it.
• The oil market operates on a global level. Lower prices are the results of changes to supply and demand on a global basis, not just in the U.S.
Critics, including conservative media outlets, attacked President Joe Biden for selling oil from the Strategic Petroleum Reserve to a Chinese-owned company. Some of the coverage implies a connection between the sales and Chinese investments linked to Biden’s son H****r.
Experts in the international oil markets, however, told PolitiFact that the sales were governed by U.S. law, and they see no way that the Biden family could have influenced or benefited from the sales.
"It’s a political talking point, and a ridiculous one," said Patrick De Haan, a vice president with GasBuddy, which tracks gasoline prices.
We follow the facts and share what we learn so you can make your own decisions. Support our mission today.
What oil was sold?
The U.S. Strategic Petroleum Reserve dates from OPEC’s oil embargo in 1973 and 1974, when an oil price shock battered the U.S. economy. It was designed to diminish the vulnerability of the United States to energy supply interruptions, according to the Congressional Research Service.
The reserve has a capacity of more than 700 million barrels, stored in underground geological formations known as salt domes. The reserve encompasses four sites, two each in Louisiana and Texas.
Biden has authorized the sale of some of the reserve’s crude oil to counteract supply shortages, notably the West’s decision to cut back on Russian oil in the wake of its invasion of Ukraine. The process is done through a longstanding competitive bidding process, and whoever pays the most gets the oil.
One batch of oil, totaling 950,000 barrels, was sold on April 21 to Unipec America, a Houston-based, Chinese-owned company. Other batches of crude oil, amounting to about 4 million barrels, were sold to companies based in other countries.
What are the critics saying?
More than two months later, critics of Biden pounced. Fox News’ Tucker Carlson said Biden should be impeached for making the sale.
"So, as gas prices set records in this country, as American citizens who were born here and v**e and pay taxes cannot afford to fuel their own cars, the Biden administration is selling off our emergency oil reserves to China," Carlson said July 6. "That's not an indictable offense? It's certainly an impeachable one and they should impeach him for that."
Rep. Drew Ferguson, R-Ga., tweeted on July 7 that "Biden sending oil from the United States Strategic Petroleum Reserve overseas smells to high heaven. While Americans are paying record high prices at the pump, this administration decides to give our oil to the EU and China."
The conservative Washington Free Beacon quoted Daniel Turner — executive director of Power the Future, a pro-U.S. energy production group that targets "the radical environmental movement" — saying that the sale highlights the Biden family’s "relationship to China." The article said that H****r B***n is tied to Unipec’s parent company, Sinopec. "In 2015, a private equity firm (H****r B***n) co-founded bought a $1.7 billion stake in Sinopec Marketing," the article said.
As far as any role for H****r B***n, his lawyer, George Mesires, released a statement on Oct. 13, 2019, saying that H****r B***n would be resigning from the board of BHR, the investment company with business in China, without receiving any return on his investment or shareholder distributions. This would suggest no stake for H****r B***n in the 2022 sale to Unipec.
Why is the U.S. selling oil from the reserve to overseas companies?
Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil to overseas companies. But these experts offered a straightforward answer: That’s the law, and that’s how the international oil market works.
De Haan compared the longstanding Strategic Petroleum Reserve process to an "eBay auction for crude oil."
When an administration orders the release of oil from the Strategic Petroleum Reserve, "the Department of Energy puts out a notice of sale that alerts companies that oil will be made available for purchase," said Hugh Daigle, a professor in the University of Texas-Austin Department of Petroleum and Geosystems Engineering. "Companies then bid competitively on the oil, and the winning bidders receive the oil and the bid price." The winning company works out with the Energy Department when and how it will take possession of the oil.
Sometimes the winning bidders may be U.S. refiners, Daigle said, in which case the oil quickly boosts U.S. gasoline supplies. But in other cases, he said, foreign companies win the bid. This increases the supply of global crude oil and, eventually, helps lower prices in the United States.
The law does not bar foreign companies in good standing from competing in such auctions.
"Companies that wish to bid on the oil sale have to be registered with the Crude Oil Sales Offer Program through the Energy Department, and any company authorized to do business with the U.S. government can register for this," Daigle said. "In the case that a Chinese company submitted a winning bid, there is no restriction on the sale and delivery of oil to that company provided they are properly registered."
Sales to overseas companies typically account for a minority of the oil sold at Strategic Petroleum Reserve auctions. Calculations made for Agence France-Presse found that of 30 million barrels released from the reserve in June 2022, only about 5.35 million barrels were exported.
Why does the U.S. allow this to happen?
The oil market operates on a global level, especially since 2015, when the United States ended a ban on the export of U.S.-produced crude oil. This means that the main factors in lowering prices are changing global supply and global demand. Lower demand or greater supply reduces prices.
"The logic of allowing exports is that oil is largely fungible and globally priced," said Robert McNally, president of the Rapidan Energy Group. "So whether a barrel is refined in Louisiana or China or Italy doesn’t really matter from the perspective of the impact on domestic pump prices."
Requiring the oil to stay in the U.S. would be pointless and could be easily evaded, said Clark Williams-Derry, an energy finance analyst with the Institute for Energy Economics and Financial Analysis. An American company could buy oil at auction while selling the equivalent amount from its own reserves to a foreign country, he said.
"It’s not the same physical molecules, but the effects on U.S. and global markets would be essentially identical," Williams-Derry said.
It’s also worth noting that the company that buys oil from the reserve will need to have the ability to refine it. U.S. refiners are currently operating near capacity, and they may have special shortages in capacity for certain types of crude oil being offered from the reserve.
The international oil system, as constructed, is not necessarily "natural, inevitable, or morally commendable," since it is "mostly designed to work to the benefit of oil companies and traders," Williams-Derry said. But, he added, it’s the system we have. In that context, the auction of oil from the strategic reserve to the highest bidder accomplishes the policy goal of lowering oil prices.
==================
[i] [color=red][b]Changing the global supply is a wrong strategy when we sell US own oil reserves to C*******t Country like China. This poses a high national risk. US alone must have abundant supplies to lower our own price, but not supply the C*******t China.
Aside from the fact that China has been buying US LANDS they are also buying our Natural resources and oil reserves.
China almost own most parts of the world already. And Joe Biden is selling US assets to China most importantly our land and our natural resources. His wrong economic brain believes that when global oil supplies are abundant price of oil goes down. This is wrong! This Biden's decision is a national disaster, and a national security risks. [/color]
America, please be prepared to oust all democrats in Congress this Nov. 2022 in order to solve this immediate dangers around us. Biden must go. [/i][/quote]
We don’t have a shortage.
Stop buying every ffing lie you’re told.
Why is the US selling stockpiled oil to China? We have answers
WE NEED TO ASK CONGRESS TO LEGISLATE IN ORDER TO STOP THIS DANGEROUS MOVE. US must have its own abundant oil supplies, not providing C*******t China who is taking over world power. [/i]
-----------------------------------
Louis Jacobson
By Louis Jacobson
July 11, 2022
IF YOUR TIME IS SHORT
• Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil from its strategic reserve to overseas companies.
• The reason: The U.S. government is obligated to find the highest possible price for assets that it sells, and sometimes U.S. companies aren’t able to handle more oil when the sale is held, leaving foreign companies to buy it.
• The oil market operates on a global level. Lower prices are the results of changes to supply and demand on a global basis, not just in the U.S.
Critics, including conservative media outlets, attacked President Joe Biden for selling oil from the Strategic Petroleum Reserve to a Chinese-owned company. Some of the coverage implies a connection between the sales and Chinese investments linked to Biden’s son H****r.
Experts in the international oil markets, however, told PolitiFact that the sales were governed by U.S. law, and they see no way that the Biden family could have influenced or benefited from the sales.
"It’s a political talking point, and a ridiculous one," said Patrick De Haan, a vice president with GasBuddy, which tracks gasoline prices.
We follow the facts and share what we learn so you can make your own decisions. Support our mission today.
What oil was sold?
The U.S. Strategic Petroleum Reserve dates from OPEC’s oil embargo in 1973 and 1974, when an oil price shock battered the U.S. economy. It was designed to diminish the vulnerability of the United States to energy supply interruptions, according to the Congressional Research Service.
The reserve has a capacity of more than 700 million barrels, stored in underground geological formations known as salt domes. The reserve encompasses four sites, two each in Louisiana and Texas.
Biden has authorized the sale of some of the reserve’s crude oil to counteract supply shortages, notably the West’s decision to cut back on Russian oil in the wake of its invasion of Ukraine. The process is done through a longstanding competitive bidding process, and whoever pays the most gets the oil.
One batch of oil, totaling 950,000 barrels, was sold on April 21 to Unipec America, a Houston-based, Chinese-owned company. Other batches of crude oil, amounting to about 4 million barrels, were sold to companies based in other countries.
What are the critics saying?
More than two months later, critics of Biden pounced. Fox News’ Tucker Carlson said Biden should be impeached for making the sale.
"So, as gas prices set records in this country, as American citizens who were born here and v**e and pay taxes cannot afford to fuel their own cars, the Biden administration is selling off our emergency oil reserves to China," Carlson said July 6. "That's not an indictable offense? It's certainly an impeachable one and they should impeach him for that."
Rep. Drew Ferguson, R-Ga., tweeted on July 7 that "Biden sending oil from the United States Strategic Petroleum Reserve overseas smells to high heaven. While Americans are paying record high prices at the pump, this administration decides to give our oil to the EU and China."
The conservative Washington Free Beacon quoted Daniel Turner — executive director of Power the Future, a pro-U.S. energy production group that targets "the radical environmental movement" — saying that the sale highlights the Biden family’s "relationship to China." The article said that H****r B***n is tied to Unipec’s parent company, Sinopec. "In 2015, a private equity firm (H****r B***n) co-founded bought a $1.7 billion stake in Sinopec Marketing," the article said.
As far as any role for H****r B***n, his lawyer, George Mesires, released a statement on Oct. 13, 2019, saying that H****r B***n would be resigning from the board of BHR, the investment company with business in China, without receiving any return on his investment or shareholder distributions. This would suggest no stake for H****r B***n in the 2022 sale to Unipec.
Why is the U.S. selling oil from the reserve to overseas companies?
Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil to overseas companies. But these experts offered a straightforward answer: That’s the law, and that’s how the international oil market works.
De Haan compared the longstanding Strategic Petroleum Reserve process to an "eBay auction for crude oil."
When an administration orders the release of oil from the Strategic Petroleum Reserve, "the Department of Energy puts out a notice of sale that alerts companies that oil will be made available for purchase," said Hugh Daigle, a professor in the University of Texas-Austin Department of Petroleum and Geosystems Engineering. "Companies then bid competitively on the oil, and the winning bidders receive the oil and the bid price." The winning company works out with the Energy Department when and how it will take possession of the oil.
Sometimes the winning bidders may be U.S. refiners, Daigle said, in which case the oil quickly boosts U.S. gasoline supplies. But in other cases, he said, foreign companies win the bid. This increases the supply of global crude oil and, eventually, helps lower prices in the United States.
The law does not bar foreign companies in good standing from competing in such auctions.
"Companies that wish to bid on the oil sale have to be registered with the Crude Oil Sales Offer Program through the Energy Department, and any company authorized to do business with the U.S. government can register for this," Daigle said. "In the case that a Chinese company submitted a winning bid, there is no restriction on the sale and delivery of oil to that company provided they are properly registered."
Sales to overseas companies typically account for a minority of the oil sold at Strategic Petroleum Reserve auctions. Calculations made for Agence France-Presse found that of 30 million barrels released from the reserve in June 2022, only about 5.35 million barrels were exported.
Why does the U.S. allow this to happen?
The oil market operates on a global level, especially since 2015, when the United States ended a ban on the export of U.S.-produced crude oil. This means that the main factors in lowering prices are changing global supply and global demand. Lower demand or greater supply reduces prices.
"The logic of allowing exports is that oil is largely fungible and globally priced," said Robert McNally, president of the Rapidan Energy Group. "So whether a barrel is refined in Louisiana or China or Italy doesn’t really matter from the perspective of the impact on domestic pump prices."
Requiring the oil to stay in the U.S. would be pointless and could be easily evaded, said Clark Williams-Derry, an energy finance analyst with the Institute for Energy Economics and Financial Analysis. An American company could buy oil at auction while selling the equivalent amount from its own reserves to a foreign country, he said.
"It’s not the same physical molecules, but the effects on U.S. and global markets would be essentially identical," Williams-Derry said.
It’s also worth noting that the company that buys oil from the reserve will need to have the ability to refine it. U.S. refiners are currently operating near capacity, and they may have special shortages in capacity for certain types of crude oil being offered from the reserve.
The international oil system, as constructed, is not necessarily "natural, inevitable, or morally commendable," since it is "mostly designed to work to the benefit of oil companies and traders," Williams-Derry said. But, he added, it’s the system we have. In that context, the auction of oil from the strategic reserve to the highest bidder accomplishes the policy goal of lowering oil prices.
==================
[i] [color=red][b]Changing the global supply is a wrong strategy when we sell US own oil reserves to C*******t Country like China. This poses a high national risk. US alone must have abundant supplies to lower our own price, but not supply the C*******t China.
Aside from the fact that China has been buying US LANDS they are also buying our Natural resources and oil reserves.
China almost own most parts of the world already. And Joe Biden is selling US assets to China most importantly our land and our natural resources. His wrong economic brain believes that when global oil supplies are abundant price of oil goes down. This is wrong! This Biden's decision is a national disaster, and a national security risks. [/color]
America, please be prepared to oust all democrats in Congress this Nov. 2022 in order to solve this immediate dangers around us. Biden must go. [/i][/quote]
We don’t have a shortage.
Stop buying every ffing lie you’re told.
Oct 3, 2022 20:15:48 #
Milosia2 wrote:
We don’t have a shortage.
Stop buying every ffing lie you’re told.
Stop buying every ffing lie you’re told.
================
I know that but Biden has restricted the drilling of our own abundant resources. While he sells them to China. As we the people suffer the highest gas prices at the pump. I am paying $5.29 per gallon regular, while the premium is $6. 39/gallon.
Lie? I did not create the report. Exactly what was reported and why I question Biden actions, as national security risk. His son H****r is enriching his pockets while creating this global market for US oil reserves.
Oct 3, 2022 20:42:27 #
keepuphope
Loc: Idaho
[quote=Radiance3]https://www.factcheck.org/2022/07/u-s-selling-oil-from-the-strategic-petroleum-reserve-to-the-highest-bidding-companies/
Why is the US selling stockpiled oil to China? We have answers
WE NEED TO ASK CONGRESS TO LEGISLATE IN ORDER TO STOP THIS DANGEROUS MOVE. US must have its own abundant oil supplies, not providing C*******t China who is taking over world power.
-----------------------------------
Louis Jacobson
By Louis Jacobson
July 11, 2022
IF YOUR TIME IS SHORT
• Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil from its strategic reserve to overseas companies.
• The reason: The U.S. government is obligated to find the highest possible price for assets that it sells, and sometimes U.S. companies aren’t able to handle more oil when the sale is held, leaving foreign companies to buy it.
• The oil market operates on a global level. Lower prices are the results of changes to supply and demand on a global basis, not just in the U.S.
Critics, including conservative media outlets, attacked President Joe Biden for selling oil from the Strategic Petroleum Reserve to a Chinese-owned company. Some of the coverage implies a connection between the sales and Chinese investments linked to Biden’s son H****r.
Experts in the international oil markets, however, told PolitiFact that the sales were governed by U.S. law, and they see no way that the Biden family could have influenced or benefited from the sales.
"It’s a political talking point, and a ridiculous one," said Patrick De Haan, a vice president with GasBuddy, which tracks gasoline prices.
We follow the facts and share what we learn so you can make your own decisions. Support our mission today.
What oil was sold?
The U.S. Strategic Petroleum Reserve dates from OPEC’s oil embargo in 1973 and 1974, when an oil price shock battered the U.S. economy. It was designed to diminish the vulnerability of the United States to energy supply interruptions, according to the Congressional Research Service.
The reserve has a capacity of more than 700 million barrels, stored in underground geological formations known as salt domes. The reserve encompasses four sites, two each in Louisiana and Texas.
Biden has authorized the sale of some of the reserve’s crude oil to counteract supply shortages, notably the West’s decision to cut back on Russian oil in the wake of its invasion of Ukraine. The process is done through a longstanding competitive bidding process, and whoever pays the most gets the oil.
One batch of oil, totaling 950,000 barrels, was sold on April 21 to Unipec America, a Houston-based, Chinese-owned company. Other batches of crude oil, amounting to about 4 million barrels, were sold to companies based in other countries.
What are the critics saying?
More than two months later, critics of Biden pounced. Fox News’ Tucker Carlson said Biden should be impeached for making the sale.
"So, as gas prices set records in this country, as American citizens who were born here and v**e and pay taxes cannot afford to fuel their own cars, the Biden administration is selling off our emergency oil reserves to China," Carlson said July 6. "That's not an indictable offense? It's certainly an impeachable one and they should impeach him for that."
Rep. Drew Ferguson, R-Ga., tweeted on July 7 that "Biden sending oil from the United States Strategic Petroleum Reserve overseas smells to high heaven. While Americans are paying record high prices at the pump, this administration decides to give our oil to the EU and China."
The conservative Washington Free Beacon quoted Daniel Turner — executive director of Power the Future, a pro-U.S. energy production group that targets "the radical environmental movement" — saying that the sale highlights the Biden family’s "relationship to China." The article said that H****r B***n is tied to Unipec’s parent company, Sinopec. "In 2015, a private equity firm (H****r B***n) co-founded bought a $1.7 billion stake in Sinopec Marketing," the article said.
As far as any role for H****r B***n, his lawyer, George Mesires, released a statement on Oct. 13, 2019, saying that H****r B***n would be resigning from the board of BHR, the investment company with business in China, without receiving any return on his investment or shareholder distributions. This would suggest no stake for H****r B***n in the 2022 sale to Unipec.
Why is the U.S. selling oil from the reserve to overseas companies?
Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil to overseas companies. But these experts offered a straightforward answer: That’s the law, and that’s how the international oil market works.
De Haan compared the longstanding Strategic Petroleum Reserve process to an "eBay auction for crude oil."
When an administration orders the release of oil from the Strategic Petroleum Reserve, "the Department of Energy puts out a notice of sale that alerts companies that oil will be made available for purchase," said Hugh Daigle, a professor in the University of Texas-Austin Department of Petroleum and Geosystems Engineering. "Companies then bid competitively on the oil, and the winning bidders receive the oil and the bid price." The winning company works out with the Energy Department when and how it will take possession of the oil.
Sometimes the winning bidders may be U.S. refiners, Daigle said, in which case the oil quickly boosts U.S. gasoline supplies. But in other cases, he said, foreign companies win the bid. This increases the supply of global crude oil and, eventually, helps lower prices in the United States.
The law does not bar foreign companies in good standing from competing in such auctions.
"Companies that wish to bid on the oil sale have to be registered with the Crude Oil Sales Offer Program through the Energy Department, and any company authorized to do business with the U.S. government can register for this," Daigle said. "In the case that a Chinese company submitted a winning bid, there is no restriction on the sale and delivery of oil to that company provided they are properly registered."
Sales to overseas companies typically account for a minority of the oil sold at Strategic Petroleum Reserve auctions. Calculations made for Agence France-Presse found that of 30 million barrels released from the reserve in June 2022, only about 5.35 million barrels were exported.
Why does the U.S. allow this to happen?
The oil market operates on a global level, especially since 2015, when the United States ended a ban on the export of U.S.-produced crude oil. This means that the main factors in lowering prices are changing global supply and global demand. Lower demand or greater supply reduces prices.
"The logic of allowing exports is that oil is largely fungible and globally priced," said Robert McNally, president of the Rapidan Energy Group. "So whether a barrel is refined in Louisiana or China or Italy doesn’t really matter from the perspective of the impact on domestic pump prices."
Requiring the oil to stay in the U.S. would be pointless and could be easily evaded, said Clark Williams-Derry, an energy finance analyst with the Institute for Energy Economics and Financial Analysis. An American company could buy oil at auction while selling the equivalent amount from its own reserves to a foreign country, he said.
"It’s not the same physical molecules, but the effects on U.S. and global markets would be essentially identical," Williams-Derry said.
It’s also worth noting that the company that buys oil from the reserve will need to have the ability to refine it. U.S. refiners are currently operating near capacity, and they may have special shortages in capacity for certain types of crude oil being offered from the reserve.
The international oil system, as constructed, is not necessarily "natural, inevitable, or morally commendable," since it is "mostly designed to work to the benefit of oil companies and traders," Williams-Derry said. But, he added, it’s the system we have. In that context, the auction of oil from the strategic reserve to the highest bidder accomplishes the policy goal of lowering oil prices.
==================
[i] [color=red][b]Changing the global supply is a wrong strategy when we sell US own oil reserves to C*******t Country like China. This poses a high national risk. US alone must have abundant supplies to lower our own price, but not supply the C*******t China.
Aside from the fact that China has been buying US LANDS and US Real Estates, they are also buying our Natural resources and oil reserves.
China almost own most parts of the world already. And Joe Biden is selling US assets to China most importantly our land and our natural resources. His wrong economic brain believes that when global oil supplies are abundant price of oil goes down. This is wrong! This Biden's decision is a national disaster, and a national security risks. [/color]
America, please be prepared to oust all democrats in Congress this Nov. 2022 in order to solve this immediate dangers around us. Biden must go. [/i][/quote]
The more I study Revelation in the bible the more I'm convinced that America is the who're of Babylon. Look at the filth our country is involved in and pushing in other countries. If we are we will fall. Looking more and more like it.
Why is the US selling stockpiled oil to China? We have answers
WE NEED TO ASK CONGRESS TO LEGISLATE IN ORDER TO STOP THIS DANGEROUS MOVE. US must have its own abundant oil supplies, not providing C*******t China who is taking over world power.
-----------------------------------
Louis Jacobson
By Louis Jacobson
July 11, 2022
IF YOUR TIME IS SHORT
• Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil from its strategic reserve to overseas companies.
• The reason: The U.S. government is obligated to find the highest possible price for assets that it sells, and sometimes U.S. companies aren’t able to handle more oil when the sale is held, leaving foreign companies to buy it.
• The oil market operates on a global level. Lower prices are the results of changes to supply and demand on a global basis, not just in the U.S.
Critics, including conservative media outlets, attacked President Joe Biden for selling oil from the Strategic Petroleum Reserve to a Chinese-owned company. Some of the coverage implies a connection between the sales and Chinese investments linked to Biden’s son H****r.
Experts in the international oil markets, however, told PolitiFact that the sales were governed by U.S. law, and they see no way that the Biden family could have influenced or benefited from the sales.
"It’s a political talking point, and a ridiculous one," said Patrick De Haan, a vice president with GasBuddy, which tracks gasoline prices.
We follow the facts and share what we learn so you can make your own decisions. Support our mission today.
What oil was sold?
The U.S. Strategic Petroleum Reserve dates from OPEC’s oil embargo in 1973 and 1974, when an oil price shock battered the U.S. economy. It was designed to diminish the vulnerability of the United States to energy supply interruptions, according to the Congressional Research Service.
The reserve has a capacity of more than 700 million barrels, stored in underground geological formations known as salt domes. The reserve encompasses four sites, two each in Louisiana and Texas.
Biden has authorized the sale of some of the reserve’s crude oil to counteract supply shortages, notably the West’s decision to cut back on Russian oil in the wake of its invasion of Ukraine. The process is done through a longstanding competitive bidding process, and whoever pays the most gets the oil.
One batch of oil, totaling 950,000 barrels, was sold on April 21 to Unipec America, a Houston-based, Chinese-owned company. Other batches of crude oil, amounting to about 4 million barrels, were sold to companies based in other countries.
What are the critics saying?
More than two months later, critics of Biden pounced. Fox News’ Tucker Carlson said Biden should be impeached for making the sale.
"So, as gas prices set records in this country, as American citizens who were born here and v**e and pay taxes cannot afford to fuel their own cars, the Biden administration is selling off our emergency oil reserves to China," Carlson said July 6. "That's not an indictable offense? It's certainly an impeachable one and they should impeach him for that."
Rep. Drew Ferguson, R-Ga., tweeted on July 7 that "Biden sending oil from the United States Strategic Petroleum Reserve overseas smells to high heaven. While Americans are paying record high prices at the pump, this administration decides to give our oil to the EU and China."
The conservative Washington Free Beacon quoted Daniel Turner — executive director of Power the Future, a pro-U.S. energy production group that targets "the radical environmental movement" — saying that the sale highlights the Biden family’s "relationship to China." The article said that H****r B***n is tied to Unipec’s parent company, Sinopec. "In 2015, a private equity firm (H****r B***n) co-founded bought a $1.7 billion stake in Sinopec Marketing," the article said.
As far as any role for H****r B***n, his lawyer, George Mesires, released a statement on Oct. 13, 2019, saying that H****r B***n would be resigning from the board of BHR, the investment company with business in China, without receiving any return on his investment or shareholder distributions. This would suggest no stake for H****r B***n in the 2022 sale to Unipec.
Why is the U.S. selling oil from the reserve to overseas companies?
Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil to overseas companies. But these experts offered a straightforward answer: That’s the law, and that’s how the international oil market works.
De Haan compared the longstanding Strategic Petroleum Reserve process to an "eBay auction for crude oil."
When an administration orders the release of oil from the Strategic Petroleum Reserve, "the Department of Energy puts out a notice of sale that alerts companies that oil will be made available for purchase," said Hugh Daigle, a professor in the University of Texas-Austin Department of Petroleum and Geosystems Engineering. "Companies then bid competitively on the oil, and the winning bidders receive the oil and the bid price." The winning company works out with the Energy Department when and how it will take possession of the oil.
Sometimes the winning bidders may be U.S. refiners, Daigle said, in which case the oil quickly boosts U.S. gasoline supplies. But in other cases, he said, foreign companies win the bid. This increases the supply of global crude oil and, eventually, helps lower prices in the United States.
The law does not bar foreign companies in good standing from competing in such auctions.
"Companies that wish to bid on the oil sale have to be registered with the Crude Oil Sales Offer Program through the Energy Department, and any company authorized to do business with the U.S. government can register for this," Daigle said. "In the case that a Chinese company submitted a winning bid, there is no restriction on the sale and delivery of oil to that company provided they are properly registered."
Sales to overseas companies typically account for a minority of the oil sold at Strategic Petroleum Reserve auctions. Calculations made for Agence France-Presse found that of 30 million barrels released from the reserve in June 2022, only about 5.35 million barrels were exported.
Why does the U.S. allow this to happen?
The oil market operates on a global level, especially since 2015, when the United States ended a ban on the export of U.S.-produced crude oil. This means that the main factors in lowering prices are changing global supply and global demand. Lower demand or greater supply reduces prices.
"The logic of allowing exports is that oil is largely fungible and globally priced," said Robert McNally, president of the Rapidan Energy Group. "So whether a barrel is refined in Louisiana or China or Italy doesn’t really matter from the perspective of the impact on domestic pump prices."
Requiring the oil to stay in the U.S. would be pointless and could be easily evaded, said Clark Williams-Derry, an energy finance analyst with the Institute for Energy Economics and Financial Analysis. An American company could buy oil at auction while selling the equivalent amount from its own reserves to a foreign country, he said.
"It’s not the same physical molecules, but the effects on U.S. and global markets would be essentially identical," Williams-Derry said.
It’s also worth noting that the company that buys oil from the reserve will need to have the ability to refine it. U.S. refiners are currently operating near capacity, and they may have special shortages in capacity for certain types of crude oil being offered from the reserve.
The international oil system, as constructed, is not necessarily "natural, inevitable, or morally commendable," since it is "mostly designed to work to the benefit of oil companies and traders," Williams-Derry said. But, he added, it’s the system we have. In that context, the auction of oil from the strategic reserve to the highest bidder accomplishes the policy goal of lowering oil prices.
==================
[i] [color=red][b]Changing the global supply is a wrong strategy when we sell US own oil reserves to C*******t Country like China. This poses a high national risk. US alone must have abundant supplies to lower our own price, but not supply the C*******t China.
Aside from the fact that China has been buying US LANDS and US Real Estates, they are also buying our Natural resources and oil reserves.
China almost own most parts of the world already. And Joe Biden is selling US assets to China most importantly our land and our natural resources. His wrong economic brain believes that when global oil supplies are abundant price of oil goes down. This is wrong! This Biden's decision is a national disaster, and a national security risks. [/color]
America, please be prepared to oust all democrats in Congress this Nov. 2022 in order to solve this immediate dangers around us. Biden must go. [/i][/quote]
The more I study Revelation in the bible the more I'm convinced that America is the who're of Babylon. Look at the filth our country is involved in and pushing in other countries. If we are we will fall. Looking more and more like it.
Oct 3, 2022 21:30:08 #
keepuphope wrote:
The more I study Revelation in the bible the more I'm convinced that America is the who're of Babylon. Look at the filth our country is involved in and pushing in other countries. If we are we will fall. Looking more and more like it.
================
Especially now that the democrats and their leaders pushed away God from their lives, and chose power and materialism. The k*****g of babies, and the lifestyle of L**T'S being taught to kids in schools. Corruptions and dishonesty for the greed of power. Immoral, they k**l, steal, and waves of violence against the innocent. God is watching!
Remember the 9/11. Most Americans have forgotten God. And God punished . But the people persisted and rebuilt what was destroyed.
ISAIH 9:10.
"The bricks are fallen down, but come let us hew stones, and cut down sycamores and cedars, and let us build for ourselves a tower."
This exactly what happened. There was a sycamores tree at the ground of the Twin Towers, but was destroyed. Now they have replaced with cedars.
The prophesy of the " Harbinger", by Jonathan Khan.
Oct 3, 2022 21:47:00 #
Radiance3 wrote:
================
I know that but Biden has restricted the drilling of our own abundant resources. While he sells them to China. As we the people suffer the highest gas prices at the pump. I am paying $5.29 per gallon regular, while the premium is $6. 39/gallon.
Lie? I did not create the report. Exactly what was reported and why I question Biden actions, as national security risk. His son H****r is enriching his pockets while creating this global market for US oil reserves.
I know that but Biden has restricted the drilling of our own abundant resources. While he sells them to China. As we the people suffer the highest gas prices at the pump. I am paying $5.29 per gallon regular, while the premium is $6. 39/gallon.
Lie? I did not create the report. Exactly what was reported and why I question Biden actions, as national security risk. His son H****r is enriching his pockets while creating this global market for US oil reserves.
No he hasn’t . There are still open leases for drilling but the drillers refuse to drill here. My guess is too expensive. Labor payments raise the price of gas .
Better to ship from Dictator Run Countries where the Labor is Free.
Current prices below $3.00/ gallon. Drilling here would raise the price of gas.
Oct 3, 2022 23:43:50 #
[quote=Radiance3]https://www.factcheck.org/2022/07/u-s-selling-oil-from-the-strategic-petroleum-reserve-to-the-highest-bidding-companies/
Why is the US selling stockpiled oil to China? We have answers
WE NEED TO ASK CONGRESS TO LEGISLATE IN ORDER TO STOP THIS DANGEROUS MOVE. US must have its own abundant oil supplies, not providing C*******t China who is taking over world power.
-----------------------------------
Louis Jacobson
By Louis Jacobson
July 11, 2022
IF YOUR TIME IS SHORT
• Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil from its strategic reserve to overseas companies.
• The reason: The U.S. government is obligated to find the highest possible price for assets that it sells, and sometimes U.S. companies aren’t able to handle more oil when the sale is held, leaving foreign companies to buy it.
• The oil market operates on a global level. Lower prices are the results of changes to supply and demand on a global basis, not just in the U.S.
Critics, including conservative media outlets, attacked President Joe Biden for selling oil from the Strategic Petroleum Reserve to a Chinese-owned company. Some of the coverage implies a connection between the sales and Chinese investments linked to Biden’s son H****r.
Experts in the international oil markets, however, told PolitiFact that the sales were governed by U.S. law, and they see no way that the Biden family could have influenced or benefited from the sales.
"It’s a political talking point, and a ridiculous one," said Patrick De Haan, a vice president with GasBuddy, which tracks gasoline prices.
We follow the facts and share what we learn so you can make your own decisions. Support our mission today.
What oil was sold?
The U.S. Strategic Petroleum Reserve dates from OPEC’s oil embargo in 1973 and 1974, when an oil price shock battered the U.S. economy. It was designed to diminish the vulnerability of the United States to energy supply interruptions, according to the Congressional Research Service.
The reserve has a capacity of more than 700 million barrels, stored in underground geological formations known as salt domes. The reserve encompasses four sites, two each in Louisiana and Texas.
Biden has authorized the sale of some of the reserve’s crude oil to counteract supply shortages, notably the West’s decision to cut back on Russian oil in the wake of its invasion of Ukraine. The process is done through a longstanding competitive bidding process, and whoever pays the most gets the oil.
One batch of oil, totaling 950,000 barrels, was sold on April 21 to Unipec America, a Houston-based, Chinese-owned company. Other batches of crude oil, amounting to about 4 million barrels, were sold to companies based in other countries.
What are the critics saying?
More than two months later, critics of Biden pounced. Fox News’ Tucker Carlson said Biden should be impeached for making the sale.
"So, as gas prices set records in this country, as American citizens who were born here and v**e and pay taxes cannot afford to fuel their own cars, the Biden administration is selling off our emergency oil reserves to China," Carlson said July 6. "That's not an indictable offense? It's certainly an impeachable one and they should impeach him for that."
Rep. Drew Ferguson, R-Ga., tweeted on July 7 that "Biden sending oil from the United States Strategic Petroleum Reserve overseas smells to high heaven. While Americans are paying record high prices at the pump, this administration decides to give our oil to the EU and China."
The conservative Washington Free Beacon quoted Daniel Turner — executive director of Power the Future, a pro-U.S. energy production group that targets "the radical environmental movement" — saying that the sale highlights the Biden family’s "relationship to China." The article said that H****r B***n is tied to Unipec’s parent company, Sinopec. "In 2015, a private equity firm (H****r B***n) co-founded bought a $1.7 billion stake in Sinopec Marketing," the article said.
As far as any role for H****r B***n, his lawyer, George Mesires, released a statement on Oct. 13, 2019, saying that H****r B***n would be resigning from the board of BHR, the investment company with business in China, without receiving any return on his investment or shareholder distributions. This would suggest no stake for H****r B***n in the 2022 sale to Unipec.
Why is the U.S. selling oil from the reserve to overseas companies?
Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil to overseas companies. But these experts offered a straightforward answer: That’s the law, and that’s how the international oil market works.
De Haan compared the longstanding Strategic Petroleum Reserve process to an "eBay auction for crude oil."
When an administration orders the release of oil from the Strategic Petroleum Reserve, "the Department of Energy puts out a notice of sale that alerts companies that oil will be made available for purchase," said Hugh Daigle, a professor in the University of Texas-Austin Department of Petroleum and Geosystems Engineering. "Companies then bid competitively on the oil, and the winning bidders receive the oil and the bid price." The winning company works out with the Energy Department when and how it will take possession of the oil.
Sometimes the winning bidders may be U.S. refiners, Daigle said, in which case the oil quickly boosts U.S. gasoline supplies. But in other cases, he said, foreign companies win the bid. This increases the supply of global crude oil and, eventually, helps lower prices in the United States.
The law does not bar foreign companies in good standing from competing in such auctions.
"Companies that wish to bid on the oil sale have to be registered with the Crude Oil Sales Offer Program through the Energy Department, and any company authorized to do business with the U.S. government can register for this," Daigle said. "In the case that a Chinese company submitted a winning bid, there is no restriction on the sale and delivery of oil to that company provided they are properly registered."
Sales to overseas companies typically account for a minority of the oil sold at Strategic Petroleum Reserve auctions. Calculations made for Agence France-Presse found that of 30 million barrels released from the reserve in June 2022, only about 5.35 million barrels were exported.
Why does the U.S. allow this to happen?
The oil market operates on a global level, especially since 2015, when the United States ended a ban on the export of U.S.-produced crude oil. This means that the main factors in lowering prices are changing global supply and global demand. Lower demand or greater supply reduces prices.
"The logic of allowing exports is that oil is largely fungible and globally priced," said Robert McNally, president of the Rapidan Energy Group. "So whether a barrel is refined in Louisiana or China or Italy doesn’t really matter from the perspective of the impact on domestic pump prices."
Requiring the oil to stay in the U.S. would be pointless and could be easily evaded, said Clark Williams-Derry, an energy finance analyst with the Institute for Energy Economics and Financial Analysis. An American company could buy oil at auction while selling the equivalent amount from its own reserves to a foreign country, he said.
"It’s not the same physical molecules, but the effects on U.S. and global markets would be essentially identical," Williams-Derry said.
It’s also worth noting that the company that buys oil from the reserve will need to have the ability to refine it. U.S. refiners are currently operating near capacity, and they may have special shortages in capacity for certain types of crude oil being offered from the reserve.
The international oil system, as constructed, is not necessarily "natural, inevitable, or morally commendable," since it is "mostly designed to work to the benefit of oil companies and traders," Williams-Derry said. But, he added, it’s the system we have. In that context, the auction of oil from the strategic reserve to the highest bidder accomplishes the policy goal of lowering oil prices.
==================
[i] [color=red][b]Changing the global supply is a wrong strategy when we sell US own oil reserves to C*******t Country like China. This poses a high national risk. US alone must have abundant supplies to lower our own price, but not supply the C*******t China.
Aside from the fact that China has been buying US LANDS and US Real Estates, they are also buying our Natural resources and oil reserves.
China almost own most parts of the world already. And Joe Biden is selling US assets to China most importantly our land and our natural resources. His wrong economic brain believes that when global oil supplies are abundant price of oil goes down. This is wrong! This Biden's decision is a national disaster, and a national security risks. [/color]
America, please be prepared to oust all democrats in Congress this Nov. 2022 in order to solve this immediate dangers around us. Biden must go. [/i][/quote]
If he doesn’t sell oil to China how would he get a kick back
Why is the US selling stockpiled oil to China? We have answers
WE NEED TO ASK CONGRESS TO LEGISLATE IN ORDER TO STOP THIS DANGEROUS MOVE. US must have its own abundant oil supplies, not providing C*******t China who is taking over world power.
-----------------------------------
Louis Jacobson
By Louis Jacobson
July 11, 2022
IF YOUR TIME IS SHORT
• Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil from its strategic reserve to overseas companies.
• The reason: The U.S. government is obligated to find the highest possible price for assets that it sells, and sometimes U.S. companies aren’t able to handle more oil when the sale is held, leaving foreign companies to buy it.
• The oil market operates on a global level. Lower prices are the results of changes to supply and demand on a global basis, not just in the U.S.
Critics, including conservative media outlets, attacked President Joe Biden for selling oil from the Strategic Petroleum Reserve to a Chinese-owned company. Some of the coverage implies a connection between the sales and Chinese investments linked to Biden’s son H****r.
Experts in the international oil markets, however, told PolitiFact that the sales were governed by U.S. law, and they see no way that the Biden family could have influenced or benefited from the sales.
"It’s a political talking point, and a ridiculous one," said Patrick De Haan, a vice president with GasBuddy, which tracks gasoline prices.
We follow the facts and share what we learn so you can make your own decisions. Support our mission today.
What oil was sold?
The U.S. Strategic Petroleum Reserve dates from OPEC’s oil embargo in 1973 and 1974, when an oil price shock battered the U.S. economy. It was designed to diminish the vulnerability of the United States to energy supply interruptions, according to the Congressional Research Service.
The reserve has a capacity of more than 700 million barrels, stored in underground geological formations known as salt domes. The reserve encompasses four sites, two each in Louisiana and Texas.
Biden has authorized the sale of some of the reserve’s crude oil to counteract supply shortages, notably the West’s decision to cut back on Russian oil in the wake of its invasion of Ukraine. The process is done through a longstanding competitive bidding process, and whoever pays the most gets the oil.
One batch of oil, totaling 950,000 barrels, was sold on April 21 to Unipec America, a Houston-based, Chinese-owned company. Other batches of crude oil, amounting to about 4 million barrels, were sold to companies based in other countries.
What are the critics saying?
More than two months later, critics of Biden pounced. Fox News’ Tucker Carlson said Biden should be impeached for making the sale.
"So, as gas prices set records in this country, as American citizens who were born here and v**e and pay taxes cannot afford to fuel their own cars, the Biden administration is selling off our emergency oil reserves to China," Carlson said July 6. "That's not an indictable offense? It's certainly an impeachable one and they should impeach him for that."
Rep. Drew Ferguson, R-Ga., tweeted on July 7 that "Biden sending oil from the United States Strategic Petroleum Reserve overseas smells to high heaven. While Americans are paying record high prices at the pump, this administration decides to give our oil to the EU and China."
The conservative Washington Free Beacon quoted Daniel Turner — executive director of Power the Future, a pro-U.S. energy production group that targets "the radical environmental movement" — saying that the sale highlights the Biden family’s "relationship to China." The article said that H****r B***n is tied to Unipec’s parent company, Sinopec. "In 2015, a private equity firm (H****r B***n) co-founded bought a $1.7 billion stake in Sinopec Marketing," the article said.
As far as any role for H****r B***n, his lawyer, George Mesires, released a statement on Oct. 13, 2019, saying that H****r B***n would be resigning from the board of BHR, the investment company with business in China, without receiving any return on his investment or shareholder distributions. This would suggest no stake for H****r B***n in the 2022 sale to Unipec.
Why is the U.S. selling oil from the reserve to overseas companies?
Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil to overseas companies. But these experts offered a straightforward answer: That’s the law, and that’s how the international oil market works.
De Haan compared the longstanding Strategic Petroleum Reserve process to an "eBay auction for crude oil."
When an administration orders the release of oil from the Strategic Petroleum Reserve, "the Department of Energy puts out a notice of sale that alerts companies that oil will be made available for purchase," said Hugh Daigle, a professor in the University of Texas-Austin Department of Petroleum and Geosystems Engineering. "Companies then bid competitively on the oil, and the winning bidders receive the oil and the bid price." The winning company works out with the Energy Department when and how it will take possession of the oil.
Sometimes the winning bidders may be U.S. refiners, Daigle said, in which case the oil quickly boosts U.S. gasoline supplies. But in other cases, he said, foreign companies win the bid. This increases the supply of global crude oil and, eventually, helps lower prices in the United States.
The law does not bar foreign companies in good standing from competing in such auctions.
"Companies that wish to bid on the oil sale have to be registered with the Crude Oil Sales Offer Program through the Energy Department, and any company authorized to do business with the U.S. government can register for this," Daigle said. "In the case that a Chinese company submitted a winning bid, there is no restriction on the sale and delivery of oil to that company provided they are properly registered."
Sales to overseas companies typically account for a minority of the oil sold at Strategic Petroleum Reserve auctions. Calculations made for Agence France-Presse found that of 30 million barrels released from the reserve in June 2022, only about 5.35 million barrels were exported.
Why does the U.S. allow this to happen?
The oil market operates on a global level, especially since 2015, when the United States ended a ban on the export of U.S.-produced crude oil. This means that the main factors in lowering prices are changing global supply and global demand. Lower demand or greater supply reduces prices.
"The logic of allowing exports is that oil is largely fungible and globally priced," said Robert McNally, president of the Rapidan Energy Group. "So whether a barrel is refined in Louisiana or China or Italy doesn’t really matter from the perspective of the impact on domestic pump prices."
Requiring the oil to stay in the U.S. would be pointless and could be easily evaded, said Clark Williams-Derry, an energy finance analyst with the Institute for Energy Economics and Financial Analysis. An American company could buy oil at auction while selling the equivalent amount from its own reserves to a foreign country, he said.
"It’s not the same physical molecules, but the effects on U.S. and global markets would be essentially identical," Williams-Derry said.
It’s also worth noting that the company that buys oil from the reserve will need to have the ability to refine it. U.S. refiners are currently operating near capacity, and they may have special shortages in capacity for certain types of crude oil being offered from the reserve.
The international oil system, as constructed, is not necessarily "natural, inevitable, or morally commendable," since it is "mostly designed to work to the benefit of oil companies and traders," Williams-Derry said. But, he added, it’s the system we have. In that context, the auction of oil from the strategic reserve to the highest bidder accomplishes the policy goal of lowering oil prices.
==================
[i] [color=red][b]Changing the global supply is a wrong strategy when we sell US own oil reserves to C*******t Country like China. This poses a high national risk. US alone must have abundant supplies to lower our own price, but not supply the C*******t China.
Aside from the fact that China has been buying US LANDS and US Real Estates, they are also buying our Natural resources and oil reserves.
China almost own most parts of the world already. And Joe Biden is selling US assets to China most importantly our land and our natural resources. His wrong economic brain believes that when global oil supplies are abundant price of oil goes down. This is wrong! This Biden's decision is a national disaster, and a national security risks. [/color]
America, please be prepared to oust all democrats in Congress this Nov. 2022 in order to solve this immediate dangers around us. Biden must go. [/i][/quote]
If he doesn’t sell oil to China how would he get a kick back
Oct 4, 2022 00:07:34 #
Radiance3 wrote:
================ br i Especially now that the de... (show quote)
he is trading us oil to china for their f******l
Oct 4, 2022 07:03:38 #
Bevvy wrote:
he is trading us oil to china for their f******l
===================
Ya, while China poisons our people with f******l!
Biden's stupid reason for selling oil to China is that if we supply the world with abundant oil, gas prices will go down.
After he took over the WH. he reversed all the oil and gas drilling policies of President Trump. Then Biden prevented the American people from drilling due to C*****e C****e.
Resulted due to low supply, gas prices went up so high, along with the highest inflation. We all now suffer due to highest prices of everything.
Then he imported oil from c*******t Russia, Venezuela, and the ME. Begging the Saudi's to sell us more. But now he is selling our own oil reserves to c*******t China ? China has been buying our lands too.
For heaven sake, this is the most stupid and dangerous policy I could ever think of.
Oct 4, 2022 07:10:21 #
Milosia2 wrote:
We don’t have a shortage.
Stop buying every ffing lie you’re told.
Stop buying every ffing lie you’re told.
Thats a long winded attempt at defending something that should never have happened
You defend it because he’s a democrat. It doesn’t get more ridiculous or partisan than that
Oct 6, 2022 16:16:20 #
[quote=Radiance3]https://www.factcheck.org/2022/07/u-s-selling-oil-from-the-strategic-petroleum-reserve-to-the-highest-bidding-companies/
Why is the US selling stockpiled oil to China? We have answers
WE NEED TO ASK CONGRESS TO LEGISLATE IN ORDER TO STOP THIS DANGEROUS MOVE. US must have its own abundant oil supplies, not providing C*******t China who is taking over world power.
-----------------------------------
Louis Jacobson
By Louis Jacobson
July 11, 2022
IF YOUR TIME IS SHORT
• Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil from its strategic reserve to overseas companies.
• The reason: The U.S. government is obligated to find the highest possible price for assets that it sells, and sometimes U.S. companies aren’t able to handle more oil when the sale is held, leaving foreign companies to buy it.
• The oil market operates on a global level. Lower prices are the results of changes to supply and demand on a global basis, not just in the U.S.
Critics, including conservative media outlets, attacked President Joe Biden for selling oil from the Strategic Petroleum Reserve to a Chinese-owned company. Some of the coverage implies a connection between the sales and Chinese investments linked to Biden’s son H****r.
Experts in the international oil markets, however, told PolitiFact that the sales were governed by U.S. law, and they see no way that the Biden family could have influenced or benefited from the sales.
"It’s a political talking point, and a ridiculous one," said Patrick De Haan, a vice president with GasBuddy, which tracks gasoline prices.
We follow the facts and share what we learn so you can make your own decisions. Support our mission today.
What oil was sold?
The U.S. Strategic Petroleum Reserve dates from OPEC’s oil embargo in 1973 and 1974, when an oil price shock battered the U.S. economy. It was designed to diminish the vulnerability of the United States to energy supply interruptions, according to the Congressional Research Service.
The reserve has a capacity of more than 700 million barrels, stored in underground geological formations known as salt domes. The reserve encompasses four sites, two each in Louisiana and Texas.
Biden has authorized the sale of some of the reserve’s crude oil to counteract supply shortages, notably the West’s decision to cut back on Russian oil in the wake of its invasion of Ukraine. The process is done through a longstanding competitive bidding process, and whoever pays the most gets the oil.
One batch of oil, totaling 950,000 barrels, was sold on April 21 to Unipec America, a Houston-based, Chinese-owned company. Other batches of crude oil, amounting to about 4 million barrels, were sold to companies based in other countries.
What are the critics saying?
More than two months later, critics of Biden pounced. Fox News’ Tucker Carlson said Biden should be impeached for making the sale.
"So, as gas prices set records in this country, as American citizens who were born here and v**e and pay taxes cannot afford to fuel their own cars, the Biden administration is selling off our emergency oil reserves to China," Carlson said July 6. "That's not an indictable offense? It's certainly an impeachable one and they should impeach him for that."
Rep. Drew Ferguson, R-Ga., tweeted on July 7 that "Biden sending oil from the United States Strategic Petroleum Reserve overseas smells to high heaven. While Americans are paying record high prices at the pump, this administration decides to give our oil to the EU and China."
The conservative Washington Free Beacon quoted Daniel Turner — executive director of Power the Future, a pro-U.S. energy production group that targets "the radical environmental movement" — saying that the sale highlights the Biden family’s "relationship to China." The article said that H****r B***n is tied to Unipec’s parent company, Sinopec. "In 2015, a private equity firm (H****r B***n) co-founded bought a $1.7 billion stake in Sinopec Marketing," the article said.
As far as any role for H****r B***n, his lawyer, George Mesires, released a statement on Oct. 13, 2019, saying that H****r B***n would be resigning from the board of BHR, the investment company with business in China, without receiving any return on his investment or shareholder distributions. This would suggest no stake for H****r B***n in the 2022 sale to Unipec.
Why is the U.S. selling oil from the reserve to overseas companies?
Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil to overseas companies. But these experts offered a straightforward answer: That’s the law, and that’s how the international oil market works.
De Haan compared the longstanding Strategic Petroleum Reserve process to an "eBay auction for crude oil."
When an administration orders the release of oil from the Strategic Petroleum Reserve, "the Department of Energy puts out a notice of sale that alerts companies that oil will be made available for purchase," said Hugh Daigle, a professor in the University of Texas-Austin Department of Petroleum and Geosystems Engineering. "Companies then bid competitively on the oil, and the winning bidders receive the oil and the bid price." The winning company works out with the Energy Department when and how it will take possession of the oil.
Sometimes the winning bidders may be U.S. refiners, Daigle said, in which case the oil quickly boosts U.S. gasoline supplies. But in other cases, he said, foreign companies win the bid. This increases the supply of global crude oil and, eventually, helps lower prices in the United States.
The law does not bar foreign companies in good standing from competing in such auctions.
"Companies that wish to bid on the oil sale have to be registered with the Crude Oil Sales Offer Program through the Energy Department, and any company authorized to do business with the U.S. government can register for this," Daigle said. "In the case that a Chinese company submitted a winning bid, there is no restriction on the sale and delivery of oil to that company provided they are properly registered."
Sales to overseas companies typically account for a minority of the oil sold at Strategic Petroleum Reserve auctions. Calculations made for Agence France-Presse found that of 30 million barrels released from the reserve in June 2022, only about 5.35 million barrels were exported.
Why does the U.S. allow this to happen?
The oil market operates on a global level, especially since 2015, when the United States ended a ban on the export of U.S.-produced crude oil. This means that the main factors in lowering prices are changing global supply and global demand. Lower demand or greater supply reduces prices.
"The logic of allowing exports is that oil is largely fungible and globally priced," said Robert McNally, president of the Rapidan Energy Group. "So whether a barrel is refined in Louisiana or China or Italy doesn’t really matter from the perspective of the impact on domestic pump prices."
Requiring the oil to stay in the U.S. would be pointless and could be easily evaded, said Clark Williams-Derry, an energy finance analyst with the Institute for Energy Economics and Financial Analysis. An American company could buy oil at auction while selling the equivalent amount from its own reserves to a foreign country, he said.
"It’s not the same physical molecules, but the effects on U.S. and global markets would be essentially identical," Williams-Derry said.
It’s also worth noting that the company that buys oil from the reserve will need to have the ability to refine it. U.S. refiners are currently operating near capacity, and they may have special shortages in capacity for certain types of crude oil being offered from the reserve.
The international oil system, as constructed, is not necessarily "natural, inevitable, or morally commendable," since it is "mostly designed to work to the benefit of oil companies and traders," Williams-Derry said. But, he added, it’s the system we have. In that context, the auction of oil from the strategic reserve to the highest bidder accomplishes the policy goal of lowering oil prices.
==================
[i] [color=red][b]Changing the global supply is a wrong strategy when we sell US own oil reserves to C*******t Country like China. This poses a high national risk. US alone must have abundant supplies to lower our own price, but not supply the C*******t China.
Aside from the fact that China has been buying US LANDS and US Real Estates, they are also buying our Natural resources and oil reserves.
China almost own most parts of the world already. And Joe Biden is selling US assets to China most importantly our land and our natural resources. His wrong economic brain believes that when global oil supplies are abundant price of oil goes down. This is wrong! This Biden's decision is a national disaster, and a national security risks. [/color]
America, please be prepared to oust all democrats in Congress this Nov. 2022 in order to solve this immediate dangers around us. Biden must go. [/i][/quote]
BIDOPE belongs in a RUBBER ROOM under Constant supervision 24-7-365
Why is the US selling stockpiled oil to China? We have answers
WE NEED TO ASK CONGRESS TO LEGISLATE IN ORDER TO STOP THIS DANGEROUS MOVE. US must have its own abundant oil supplies, not providing C*******t China who is taking over world power.
-----------------------------------
Louis Jacobson
By Louis Jacobson
July 11, 2022
IF YOUR TIME IS SHORT
• Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil from its strategic reserve to overseas companies.
• The reason: The U.S. government is obligated to find the highest possible price for assets that it sells, and sometimes U.S. companies aren’t able to handle more oil when the sale is held, leaving foreign companies to buy it.
• The oil market operates on a global level. Lower prices are the results of changes to supply and demand on a global basis, not just in the U.S.
Critics, including conservative media outlets, attacked President Joe Biden for selling oil from the Strategic Petroleum Reserve to a Chinese-owned company. Some of the coverage implies a connection between the sales and Chinese investments linked to Biden’s son H****r.
Experts in the international oil markets, however, told PolitiFact that the sales were governed by U.S. law, and they see no way that the Biden family could have influenced or benefited from the sales.
"It’s a political talking point, and a ridiculous one," said Patrick De Haan, a vice president with GasBuddy, which tracks gasoline prices.
We follow the facts and share what we learn so you can make your own decisions. Support our mission today.
What oil was sold?
The U.S. Strategic Petroleum Reserve dates from OPEC’s oil embargo in 1973 and 1974, when an oil price shock battered the U.S. economy. It was designed to diminish the vulnerability of the United States to energy supply interruptions, according to the Congressional Research Service.
The reserve has a capacity of more than 700 million barrels, stored in underground geological formations known as salt domes. The reserve encompasses four sites, two each in Louisiana and Texas.
Biden has authorized the sale of some of the reserve’s crude oil to counteract supply shortages, notably the West’s decision to cut back on Russian oil in the wake of its invasion of Ukraine. The process is done through a longstanding competitive bidding process, and whoever pays the most gets the oil.
One batch of oil, totaling 950,000 barrels, was sold on April 21 to Unipec America, a Houston-based, Chinese-owned company. Other batches of crude oil, amounting to about 4 million barrels, were sold to companies based in other countries.
What are the critics saying?
More than two months later, critics of Biden pounced. Fox News’ Tucker Carlson said Biden should be impeached for making the sale.
"So, as gas prices set records in this country, as American citizens who were born here and v**e and pay taxes cannot afford to fuel their own cars, the Biden administration is selling off our emergency oil reserves to China," Carlson said July 6. "That's not an indictable offense? It's certainly an impeachable one and they should impeach him for that."
Rep. Drew Ferguson, R-Ga., tweeted on July 7 that "Biden sending oil from the United States Strategic Petroleum Reserve overseas smells to high heaven. While Americans are paying record high prices at the pump, this administration decides to give our oil to the EU and China."
The conservative Washington Free Beacon quoted Daniel Turner — executive director of Power the Future, a pro-U.S. energy production group that targets "the radical environmental movement" — saying that the sale highlights the Biden family’s "relationship to China." The article said that H****r B***n is tied to Unipec’s parent company, Sinopec. "In 2015, a private equity firm (H****r B***n) co-founded bought a $1.7 billion stake in Sinopec Marketing," the article said.
As far as any role for H****r B***n, his lawyer, George Mesires, released a statement on Oct. 13, 2019, saying that H****r B***n would be resigning from the board of BHR, the investment company with business in China, without receiving any return on his investment or shareholder distributions. This would suggest no stake for H****r B***n in the 2022 sale to Unipec.
Why is the U.S. selling oil from the reserve to overseas companies?
Experts said it’s reasonable to ask why, if the U.S. is trying to lower prices at the pump back home, it would sell oil to overseas companies. But these experts offered a straightforward answer: That’s the law, and that’s how the international oil market works.
De Haan compared the longstanding Strategic Petroleum Reserve process to an "eBay auction for crude oil."
When an administration orders the release of oil from the Strategic Petroleum Reserve, "the Department of Energy puts out a notice of sale that alerts companies that oil will be made available for purchase," said Hugh Daigle, a professor in the University of Texas-Austin Department of Petroleum and Geosystems Engineering. "Companies then bid competitively on the oil, and the winning bidders receive the oil and the bid price." The winning company works out with the Energy Department when and how it will take possession of the oil.
Sometimes the winning bidders may be U.S. refiners, Daigle said, in which case the oil quickly boosts U.S. gasoline supplies. But in other cases, he said, foreign companies win the bid. This increases the supply of global crude oil and, eventually, helps lower prices in the United States.
The law does not bar foreign companies in good standing from competing in such auctions.
"Companies that wish to bid on the oil sale have to be registered with the Crude Oil Sales Offer Program through the Energy Department, and any company authorized to do business with the U.S. government can register for this," Daigle said. "In the case that a Chinese company submitted a winning bid, there is no restriction on the sale and delivery of oil to that company provided they are properly registered."
Sales to overseas companies typically account for a minority of the oil sold at Strategic Petroleum Reserve auctions. Calculations made for Agence France-Presse found that of 30 million barrels released from the reserve in June 2022, only about 5.35 million barrels were exported.
Why does the U.S. allow this to happen?
The oil market operates on a global level, especially since 2015, when the United States ended a ban on the export of U.S.-produced crude oil. This means that the main factors in lowering prices are changing global supply and global demand. Lower demand or greater supply reduces prices.
"The logic of allowing exports is that oil is largely fungible and globally priced," said Robert McNally, president of the Rapidan Energy Group. "So whether a barrel is refined in Louisiana or China or Italy doesn’t really matter from the perspective of the impact on domestic pump prices."
Requiring the oil to stay in the U.S. would be pointless and could be easily evaded, said Clark Williams-Derry, an energy finance analyst with the Institute for Energy Economics and Financial Analysis. An American company could buy oil at auction while selling the equivalent amount from its own reserves to a foreign country, he said.
"It’s not the same physical molecules, but the effects on U.S. and global markets would be essentially identical," Williams-Derry said.
It’s also worth noting that the company that buys oil from the reserve will need to have the ability to refine it. U.S. refiners are currently operating near capacity, and they may have special shortages in capacity for certain types of crude oil being offered from the reserve.
The international oil system, as constructed, is not necessarily "natural, inevitable, or morally commendable," since it is "mostly designed to work to the benefit of oil companies and traders," Williams-Derry said. But, he added, it’s the system we have. In that context, the auction of oil from the strategic reserve to the highest bidder accomplishes the policy goal of lowering oil prices.
==================
[i] [color=red][b]Changing the global supply is a wrong strategy when we sell US own oil reserves to C*******t Country like China. This poses a high national risk. US alone must have abundant supplies to lower our own price, but not supply the C*******t China.
Aside from the fact that China has been buying US LANDS and US Real Estates, they are also buying our Natural resources and oil reserves.
China almost own most parts of the world already. And Joe Biden is selling US assets to China most importantly our land and our natural resources. His wrong economic brain believes that when global oil supplies are abundant price of oil goes down. This is wrong! This Biden's decision is a national disaster, and a national security risks. [/color]
America, please be prepared to oust all democrats in Congress this Nov. 2022 in order to solve this immediate dangers around us. Biden must go. [/i][/quote]
BIDOPE belongs in a RUBBER ROOM under Constant supervision 24-7-365
Oct 6, 2022 16:19:15 #
Milosia2 wrote:
No he hasn’t . There are still open leases for drilling but the drillers refuse to drill here. My guess is too expensive. Labor payments raise the price of gas .
Better to ship from Dictator Run Countries where the Labor is Free.
Current prices below $3.00/ gallon. Drilling here would raise the price of gas.
Better to ship from Dictator Run Countries where the Labor is Free.
Current prices below $3.00/ gallon. Drilling here would raise the price of gas.
BS BS BS
Oct 12, 2022 00:39:27 #
keepuphope wrote:
The more I study Revelation in the bible the more I'm convinced that America is the who're of Babylon. Look at the filth our country is involved in and pushing in other countries. If we are we will fall. Looking more and more like it.
====================
I am getting worried of America. All I can do is to pray. I am afraid it is getting away from God. I regret those children are being indoctrinated.
The Biden administration now violates all the God's Foundation of this country.
The prophesy of Rabbi Jonathan Khan, the Harbinger 1 and 2, portrayed that America has forgotten what God wants us to be. And now the reminder of 9/11, Isaiah 9:10.
And it is getting worst. Currently, the works of the democrats are entirely out of control, disregarding the will of God. May be Biden has an Advisor doing this.
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