Debt and Assets - new thinking NEEDED -pt 2
Take for example the SPR. The USA gov't SHOULD use the SPR to control the price of crude like the Fed seeks to control interest rates, and SHOULD make use of UNREALIZED profits to generate income to the USA Treasury, and to DRASTICALLY reduce our dependance on FOREIGN crude .
Many people have expressed concern regarding the sale of crude from the SPR. I agree with many of their points. However many of those worried individuals have never been to the USA's Energy Information Administration's (US EIA) website. They have never viewed the joint US EIA and US Department of Energy (US DOE) report on the huge crude oil reserves in the shale of the BAKKEN. They have NEVER viewed the US Geologiical Survey (USGS) that shows the gov't has known about the Bakken for DECADES. Simply, the technology didn't exist to extract the crude economically ... but look out, technology has caught up. North Dakota is now a NET EXPORTER of crude.
If you go to the following link, you can view the U.S. Geological Survey Professional Paper 1653 on Diagenesis and Fracture Development in the Bakken Formation, Williston Basin: Implications for Reservoir Quality in the Middle Member
and the PDF version is available: http://pubs.usgs.gov/pp/p1653/p1653.pdf
the gov't has calculated the Bakken holds 200 - 400 BILLION bbls of crude, and recent estimates are now at 550 BILLION bbls of recoverable crude. When you consider the Billions of bbls in the Bakken vs those who want to fill the SPR to 1.5 billion bbls ... WHY?
Why export USA dollars to countries that are financially using OUR USA dollars in supporting groups that want to destroy us? We're using, per the weekly US EIA energy report, approximately 20 million bbls of crude products per DAY. Based on 365 days and 20 million bbls of crude products usage per day - that comes to a 75 YEAR crude supply in the Bakken all by itself. Now, if you did fill the SPR to 1.5 billion bbls and 20 million bbls of crude products usage per day - that comes to a 75 DAY supply.
With the Bakken- USA dollars STAY in the USA -
With the SPR- USA dollars are leaving the USA in shiploads ... NEVER to return. The trade imbalance (trade deficit) will NEVER get better. Our politicians keep promising actions to reduce our dependence on foreign oil. WHEN?
Congress is wasting time and money on hearings over Big OIl profits --- simply order them into the Bakken. When OPEC has COMPETITION and the USA dollars disappear ... the price of crude will drop. And if you STILL want to fill the SPR ... fill it with West Texas Intermediate (WTI) or Louisanna Light Sweet (LLS) Crude.