Trump to open oil reserves of the United States?

the Budget proposal of the President of trump, published yesterday, provides for the sale of 15 million barrels of oil from the strategic petroleum reserve. Funds received from the sale will be used to Finance various projects. In particular, they will go to “recovery” naval petroleum reserve in California for $242 billion, according to Reuters.

unlike other proposals, this proposal can get bilateral support: lawmakers from the Republican and Democratic parties support the sale of the strategic petroleum reserve, because his current level is higher than required by international agreements on minimum necessary supply, and because the two laws 2015 and 2018, respectively, provides for the sale of 15 million barrels of oil from the SPR this year and in 2021.

Another law, the Law on the treatment of the XXI century, adopted in 2016, involve the sale of about 25 million barrels of strategic petroleum reserve in the period from 2017 to 2019.

the U.S. Government created the strategic petroleum reserve for more than 40 years ago after the Arab oil embargo, which forced US to clearly realize how their economy is dependent on oil imports. Not to deal again with a painful fuel shortage caused by the embargo, the United States decided to stock up on oil.

But now the US produces about 13 million barrels of oil per day and imports an average of 6.6 million barrels per day, according to the latest weekly data from the energy information Administration. The United States is much less dependent on oil imports.

in fact, over the past few years the strategic petroleum reserve has become a piggy Bank, as it refers to a former head of the EIA. Legislators have sold part of the reserve to close the budget gap and reduce the deficit, but also to support the new bills.

It caused debate about the actual purpose of the strategic petroleum reserve. Some, including the President, the trump a couple years ago, argued that he should not be so great. Others were opposed because, if local production can be on a good level now, then over time things can change. So it is reasonable to have such a strong pillow, as a strategic petroleum reserve.