Jump to content
Join the Unexplained Mysteries community today! It's free and setting up an account only takes a moment.
- Sign In or Create Account -

Biden Shut's Down Keystone Pipeline in June and is now releasing 50 M barrels from strategic reserve


OverSword
 Share

Recommended Posts

Quote

 

Keystone pipeline officially canceled after Biden revokes key permit

A $9 billion oil pipeline that became a symbol of the rising political clout of climate change advocates and a flash point in U.S.-Canada relations was officially canceled on Wednesday.

Keystone XL, which was proposed in 2008 to bring oil from Canada’s Western tar sands to U.S. refiners, was halted by owner TC Energy after U.S. President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project.

Opponents of the line fought its construction for years, saying it was unnecessary and would hamper the U.S. transition to cleaner fuels. Its demise comes as other North American oil pipelines, including Dakota Access and Enbridge Line 3, face continued opposition from environmental groups.

“This is a landmark moment in the fight against the climate crisis,” said Jared Margolis, a senior attorney at the Center for Biological Diversity. “We’re hopeful that the Biden administration will continue to shift this country in the right direction by opposing fossil fuel projects.”

The Keystone XL pipeline was expected to carry 830,000 barrels per day of Alberta oil sands crude to Nebraska, but the project was delayed for the past 12 years due to opposition from U.S. landowners, Native American tribes and environmentalists.

 

https://www.cnbc.com/2021/06/09/tc-energy-terminates-keystone-xl-pipeline-project.html

Quote

 

Biden administration to release 50 million barrels of oil from strategic reserve

The Department of Energy will release 50 million barrels of oil from the nation's Strategic Petroleum Reserve, the White House announced Tuesday, as the Biden administration seeks ways to control rising costs at the pump.

Of the 50 million barrels, 32 million will eventually be returned to the strategic reserve over the years ahead once fuel prices come down in a bid to ensure the reserve remains stocked, officials said. 

Another 18 million barrels will be released as an acceleration of an oil sale Congress had already authorized.

 

https://thehill.com/policy/energy-environment/582754-biden-to-release-50-million-barrels-from-strategic-petroleum

One Question?  Who's in charge of the country?  What's the plan?  Is there a plan?  Okay, more than one question ;)

Edited by OverSword
  • Like 7
  • Thanks 1
Link to comment
Share on other sites

29 minutes ago, OverSword said:

105172456_OIP(2).jpg.5d370236ead3dc2612149164d5d8ac69.jpg

  • Like 2
Link to comment
Share on other sites

The plan is to wean ourselves away from oil dependency.  I facepalm when I see people saying that we can become oil independent by producing more of our own-  that's just like a junkie saying they aren't dependent on drugs because they make their own.

The fact that our citizens cry whenever someone breaks wind in the middle east and gas prices rise should have been a big clue that we have a had dependency problem for the last few decades.

Granted we can't just go "cold turkey" either because of how oil is needed for practically everything that makes our economy run.

  • Thanks 1
Link to comment
Share on other sites

29 minutes ago, Gromdor said:

The plan is to wean ourselves away from oil dependency.  I facepalm when I see people saying that we can become oil independent by producing more of our own-  that's just like a junkie saying they aren't dependent on drugs because they make their own.

The fact that our citizens cry whenever someone breaks wind in the middle east and gas prices rise should have been a big clue that we have a had dependency problem for the last few decades.

Granted we can't just go "cold turkey" either because of how oil is needed for practically everything that makes our economy run.

Bother to read the article.  The decisions we make effect other economies as well.  Times are tough enough without poor political decisions aggravating the situation.

  • Like 1
  • Thanks 1
Link to comment
Share on other sites

1 hour ago, Gromdor said:

The plan is to wean ourselves away from oil dependency.  I facepalm when I see people saying that we can become oil independent by producing more of our own-  that's just like a junkie saying they aren't dependent on drugs because they make their own.

How exactly does that plan work? By restricting the supply to the point where fuel prices skyrocket? Strangling commerce and tanking the economy? 
 

 

  • Like 4
Link to comment
Share on other sites

Quote

Oil prices rose above $82 a barrel on Tuesday morning after the Biden administration announced the U.S. and other nations would release tens of millions of barrels of oil from reserves in a ploy to lower prices.

The price of Brent Sweet Crude, the global benchmark, rose by more than 3.3 percent following the announcement that the U.S. would be releasing 50 million barrels from the Strategic Petroleum Reserves. China, India, South Korea, Japan, and Britain are also planning to release reserves, the White House said.

https://www.breitbart.com/economy/2021/11/23/reserve-release-backfires/
 

 

  • Like 1
  • Thanks 1
Link to comment
Share on other sites

43 minutes ago, el midgetron said:

How exactly does that plan work? By restricting the supply to the point where fuel prices skyrocket? Strangling commerce and tanking the economy? 
 

 

When oil prices rise, people by electric cars. Fewer petrol cars on the road make it look like the government is doing something about carbon emissions and enables them to both reach their 2050 agreements and let not actuslly do anything to do so.

  • Like 3
Link to comment
Share on other sites

We all know that the Keystone pipeline wouldn't be finished by now even if Biden didn't revoke the permit.  This current situation would have happened regardless.  And as El Midgetron pointed out- the extra oil being released by Biden doesn't seem to be lowering the prices.  Oil is a global commodity with a global price and that price is currently high because of supply and demand- not because who is president.  

  • Thanks 1
Link to comment
Share on other sites

Quote

Vice President Kamala Harris’s hypocrisy was on display Tuesday as President Joe Biden raided oil reserves despite her having slammed then-President Donald Trump in 2020 for refilling them.

“Absolutely unacceptable that Trump is prioritizing bailing out Big Oil companies while dragging his feet to support millions of unemployed people, workers, small businesses, and state and local governments,” Harris tweeted in 2020 during the pandemic.

https://www.breitbart.com/politics/2021/11/23/hypocrisy-kamala-harris-slammed-trump-refilling-oil-reserves-biden-drained/

  • Like 3
Link to comment
Share on other sites

You might have noticed that other countries are experiencing this same increase in pricing.  Their shortages were not caused by the US situation.  You also might have noticed that Japan, India, and several European countries are also agreeing to release release strategic reserves.

Sometimes problems in  the US  are part of world problems.

 

  • Thanks 1
Link to comment
Share on other sites

15 minutes ago, Tatetopa said:

You might have noticed that other countries are experiencing this same increase in pricing.  Their shortages were not caused by the US situation.  You also might have noticed that Japan, India, and several European countries are also agreeing to release release strategic reserves.

Sometimes problems in  the US  are part of world problems.

I did not notice that, But isn’t that the advantage to producing our own oil? So that we aren’t tethered to international trends?

  • Like 2
Link to comment
Share on other sites

11 minutes ago, el midgetron said:

I did not notice that, But isn’t that the advantage to producing our own oil? So that we aren’t tethered to international trends?

Economics, capitalism, and free markets  says no.  Oil companies are private corporations, most are multinational.  The US government cannot force them to sell their oil in the US or control prices.  We have to depend on supply and demand as I am sure you know.  You also know all the price fixing attempts by socialist and communist countries tend to fail.  If Europe and Asia are paying $7 a gallon for gasolene, that is where the US oil companies will profit the most and that is where it goes.  It only stays here if prices go up to $7 or whatever the market is paying in the US.  Capitalism and free markets seem to be the best system for distribution society has found so far.  

The US does produce a tremendous amount of oil.  The benefit of that really comes in war time when our petroleum supply  lines are local and short. Supply is coming back around the world, but it is lagging demand.  It takes a while to get refineries and pipelines up to capacity again.  Economically, it is not profitable for oil companies to sit on billions of gallons of refined products.  They wait until the price and demand is there  to pump their reserves.

The thing that is confusing about capitalist countries is there are  two different groups people refer to as   "We". 

"We" are citizens of the US and have rights and responsibilities.   The other  "We"  owns the oil companies and their reserves. The "We" that own the oil companies  have a first responsibility to shareholders. They are happy to sell on an international market.  The "We"  that own oil companies do not want to dump a lot onto the market at once and depress their price. They may be measured in their increase to assure profitability. They always get the best price that way.

  • Thanks 2
Link to comment
Share on other sites

As always with the nation's oil supply I think of the Parable of the 10 virgins that Christ explains in the Gospel. I see this as an arguement between two different perspectives on how to rule the nation. Which is wiser? In the same chapter is the Parable of Talents in Matthew 25. Trump seems to be more leaning toward the Parable of Talents, he wants to spend the oil underground to make more but it could run out. I think Biden is actually trying to conserve the underground resource, but if it is left alone it could be stolen. I really don't think I have a say in this at all, because it is like the macroscopic national decision. The microscopic decisions of the nation still matters though.

https://en.m.wikipedia.org/wiki/Parable_of_the_Ten_Virgins

 

 

  • Like 1
Link to comment
Share on other sites

25 minutes ago, Tatetopa said:

Economics, capitalism, and free markets  says no.  Oil companies are private corporations, most are multinational.  The US government cannot force them to sell their oil in the US or control prices.  We have to depend on supply and demand as I am sure you know. 

I feel like you glossed that over in your assessment. Yeah, we have to depend on supply and demand but local supply is part of that, The further oil has to be shipped the more it will cost to ship it. That cost is passed on to the buyer. 

  • Like 1
Link to comment
Share on other sites

22 minutes ago, el midgetron said:

I feel like you glossed that over in your assessment. Yeah, we have to depend on supply and demand but local supply is part of that, The further oil has to be shipped the more it will cost to ship it. That cost is passed on to the buyer. 

As someone who occasionally does work in refineries, I have to point out an unpleasant truth:  It costs Saudia Arabia about $8 a barrel to produce oil whereas the break even point for US oil is $46 a barrel for new wells and $17 a barrel for existing (and that includes shipping costs.  It only costs Saudis $3.50$ to pull a barrel out of the ground.)

How much does it cost the Saudis to produce a barrel of oil? – Ohare-airport.org

Here’s how much it costs both Saudi Arabia and the US to produce oil  |  Peak Oil News and Message Boards

We can't produce oil cheap enough to lower the cost of gas.  If anything importing from Saudi Arabia is what makes our gas as cheap as it is. 

We aren't fortunate like Saudi Arabia to have a huge reserve of light sweet crude that we can just ship off in barrels and require minimum refining.  We have shale fields and oil sands with sour crude that eats away refinery piping and requires more work to turn into gasoline.

  • Like 3
  • Thanks 3
Link to comment
Share on other sites

1 hour ago, el midgetron said:

I feel like you glossed that over in your assessment. Yeah, we have to depend on supply and demand but local supply is part of that, The further oil has to be shipped the more it will cost to ship it. That cost is passed on to the buyer. 

Yes.  It's probably best to be near the end point, the refinery, and we have a lot of them.   Many refineries in the US are in or near a port so material can come by pipeline or tanker.  They do have to factor in shipping costs as well as labor and raw material cost. Sorry, I have not done the research on shipping costs,  but I agree with you there is some local advantage, and maybe even some local goodwill   But they still might make more money selling refined products in Europe and buying their raw material somewhere else.  A person could be 10 miles from a refinery that buys crude oil from the middle east and sell gas and diesel to Europe

I do think it is a lot better for a nation to have vast deposits of oil, coal, and natural gas than not.  It gives us more options, until we sell the leases to private companies of course.

  • Like 2
Link to comment
Share on other sites

18 hours ago, Gromdor said:

As someone who occasionally does work in refineries, I have to point out an unpleasant truth:  It costs Saudia Arabia about $8 a barrel to produce oil whereas the break even point for US oil is $46 a barrel for new wells and $17 a barrel for existing (and that includes shipping costs.  It only costs Saudis $3.50$ to pull a barrel out of the ground.)

How much does it cost the Saudis to produce a barrel of oil? – Ohare-airport.org

Here’s how much it costs both Saudi Arabia and the US to produce oil  |  Peak Oil News and Message Boards

We can't produce oil cheap enough to lower the cost of gas.  If anything importing from Saudi Arabia is what makes our gas as cheap as it is. 

We aren't fortunate like Saudi Arabia to have a huge reserve of light sweet crude that we can just ship off in barrels and require minimum refining.  We have shale fields and oil sands with sour crude that eats away refinery piping and requires more work to turn into gasoline.

I don't know how many times a week I have to explain this to people at work.  I'm certainly no expert, and I have never done work in the sector, but I do understand that it is not cost effective to turn American and Canadian oil in to gas...

Link to comment
Share on other sites

It's not about commodities or trade, it's the dirty money pipelines... 

Quote

The strange and terrible tale of how Liberia became a tax haven for US companies

MARK FRAUENFELDER  11:22 AM THU DEC 3, 2020
 
...
...
...

~

 

  • Thanks 1
Link to comment
Share on other sites

The Strategic Reserves are there for a reason during economic/supply crisis.

Just sayin'...

 

Link to comment
Share on other sites

On 11/23/2021 at 12:41 PM, Gromdor said:

The plan is to wean ourselves away from oil dependency.  I facepalm when I see people saying that we can become oil independent by producing more of our own-  that's just like a junkie saying they aren't dependent on drugs because they make their own.

The fact that our citizens cry whenever someone breaks wind in the middle east and gas prices rise should have been a big clue that we have a had dependency problem for the last few decades.

Granted we can't just go "cold turkey" either because of how oil is needed for practically everything that makes our economy run.

We have huge oil reserves in the Bakken and Permian Basin.  All we have to do is drill and pump them.  The oil companies have stacks of drilling applications already approved, but don't use the oil because they can get crude cheaper from foreign sources.  Our own companies are selling us down the river.

These two sources will provide about 20 years of oil, by which time we can convert to green energy.

Doug

  • Like 1
Link to comment
Share on other sites

On 11/24/2021 at 8:42 PM, pallidin said:

The Strategic Reserves are there for a reason during economic/supply crisis.

Just sayin'...

 

The Straategic Reserves are mostly heavy sour crude, something the refiners don't want.  It sounds like a good move, but it is mostly designed to look good while not actually doing anything.  I wonder if Biden even knows that.

Doug

Link to comment
Share on other sites

1 hour ago, Doug1066 said:

We have huge oil reserves in the Bakken and Permian Basin.  All we have to do is drill and pump them.  The oil companies have stacks of drilling applications already approved, but don't use the oil because they can get crude cheaper from foreign sources.  Our own companies are selling us down the river.

These two sources will provide about 20 years of oil, by which time we can convert to green energy.

Doug

Dealers always abuse their junkies...  If they really cared about them they would wean them off the stuff- but then they lose their incomes.

Link to comment
Share on other sites

1 hour ago, Doug1066 said:

The Straategic Reserves are mostly heavy sour crude, something the refiners don't want.  It sounds like a good move, but it is mostly designed to look good while not actually doing anything.  I wonder if Biden even knows that.

Doug

It's 60/40 sweet to sour.  What oil would have been coming through the Keystone Pipeline?

Link to comment
Share on other sites

14 hours ago, Gromdor said:

If they really cared about them they would wean them off the stuff- but then they lose their incomes.

The energy companies won't lose their incomes.  They'll be the ones selling green energy.

Doug

  • Like 1
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.