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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (207742)	11/5/2006 7:46:51 PM
From: jttmab	Read Replies (1) \| Respond to of 281500

Yeah; I didn't figure in the drawdown. We aren't refilling the SPR until after the election. www2.spr.doe.gov What's odd is that under the terms of the release of oil from the SPR [for Katrina] the companies borrowing the oil were supposed to return the oil to the SPR within 6 months. It doesn't look like that happened. I think a "The President can..." might have come into play, sic, an extension to the time for return. I've also wondered when the US sells oil from the SPR what is the price that is set. The current reserve has an average cost of $27+/barrel. Does a company buy it at $27/barrel [a new meaning of sweet crude] or do they pay "market" and how is that price determined? According to a March 2001 agreement,[citation needed] all 26 members of the International Energy Agency must have a strategic petroleum reserve equal to 90 days of oil imports for their respective country. I didn't know that. The US has never felt that it's hands should be tied by silly international agreements. jttmab