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22 comments on Can we really relax?

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ChrisPhoenix on September 9, 2005 - 12:21pm Permalink | Subthread | Comments top
Waitaminnit. We're selling oil from the SPR? Unless prices go back down, it will cost more to replace that oil than we get by selling it.

Is there any way this can be construed as a good idea? Or is it just a way of exporting problems into the future, so they land on the next administration?

Chris

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RayJ on September 9, 2005 - 1:45pm Permalink | Subthread | Parent | Comments top
Chris,
The oil is no sold but loaned.  From Wikepedia: "Note: Loans are made on a case-by-case basis to alleviate supply disruptions. Once conditions return to normal, the loan is returned to the SPR with some interest as oil."

The interest is usually between 2-5% and the contract term is usually about 6 months.

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Winston on September 9, 2005 - 11:06pm Permalink | Subthread | Parent | Comments top
From the article, it appears that there is a loan of 12.6 and a sale of up to 30.
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22 comments on Can we really relax?

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