The federal government has stashed away nearly 700 million barrels of oil to shield Americans from a shock that would send gasoline prices spiking.
The country dipped into the US strategic oil reserve, during several recent disruptions such as the 2011 turmoil in Libya and Hurricane Katrina in 2005.
Now, President Trump wants to sell off half of the oil sitting in the strategic reserve, which is made up of a complex of tanks and deep underground storage caverns.
Except for the fact that the sale would be done over time, little is known about the exact timing of the move. But Trump’s fiscal 2018 budget estimates the it would generate roughly $16.6 billion over the next decade.
It’s true that the US shale oil boom has dramatically altered the global energy landscape, turning America into a leading producer and reducing dependence on imports. The surge of American oil has also created a huge glut that OPEC is still struggling to mop up.
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