George Soros Nudges Obama to Release Strategic Oil Reserves to "Ruin" Russia


Liberal billionaire George Soros suggested that President Barack Obama release oil from the country’s strategic reserves to lower gas prices and “ruin” Russia’s energy-dependent economy.

Soros told a panel in Berlin last week that the best way to sanction Russia for its actions in Ukraine “is in the hands of the United States,” because its oil reserves can depress the price of oil, reports Bloomberg.

“The strongest deterrent is in the hands of the United States because it can release oil from the strategic oil reserve, which would then reduce the price of oil, and that would ruin the Russian economy, which lives on oil,” he told Marketplace in an interview published Wednesday.

“The Russian economy is very weak because the oligarchs who run the country don’t trust it and they send their money abroad,” he added. “So if you stop the inflow of funds, that will bring the Russian economy to its knees.”

“Ukraine is determined to reform, but it needs protection,” Soros continued.

Energy Secretary Ernest Moniz has dismissed the idea of using the U.S.’s Strategic Petroleum Reserve (SPR) to punish Russia, but others have gravitated towards the idea. Former Ford and Carter administration official Philip Verleger said that U.S. SPR reserves could reduce oil prices by $12 per barrel by releasing 500,000 barrels of oil.

Verleger added that lower oil prices would cost Russia about $40 billion in oil and gas revenues, or about 2 percent of its economy. Carl Larry, president of Oil Outlooks & Opinions LLC, told Bloomberg that releasing SPR oil would also lower costs for refiners and boost U.S. exports while reducing U.S. oil imports.

“We can increase exports and the U.S. wins on all levels,” Larry said. “Refiners have better margins in the U.S. and we push out exports from Russia.”

But releasing oil from the SPR is a double-edged sword. Oil prices are set in global markets, meaning that hurting Russian oil revenues would also hurt the bottom lines of U.S. oil companies.

“If you use oil and aim it at Russia, you’ll hit Texas,” Kevin Book, managing director of ClearView Energy Partners LLC, told Bloomberg. “Besides the intrinsic problem of taking your safety net and burning it for a flash in the pan, we’re not the low-cost producer.”

The effects of an SPR release will also likely be temporary. When the Obama administration released 30 million barrels of oil from the SPR in 2011 during the Libyan civil war, prices were only depressed for a few days. Within a week, oil prices were right back to where they were before the SPR release — which was also complemented by the release of 30 million barrels from other countries.

The reserve was established in the aftermath of the 1973-74 oil embargo. It has a capacity of 727 million barrels of oil and was intended to give the president a tool to respond to disruptions in the oil supply that threaten the U.S. economy. The government has released oil from the reserve three times in the past.

Source

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  • ABBAsFernando

    After being fooled by NAZIS in WWII I doubt Putin will be so foolish!

  • trustingonlyinhim

    I wonder if Soros has asbestos underwear picked out for judgement day, he's gonna need it.

  • oldmo

    And just who is Soros for ? We dump our reserves, sting Russia like a small bee, we have none, they have plenty. Who does this hurt in the long run ?

    • Xman3

      Yes, oldmo. America 'Imports' 50% of our oil and gas and Soros/Obummer wants to 'export' our reserves??? You 'can't fix stupid'.

      It is all liberal, radical, democrat corruption, deception and lies and 50% of American voters fall for it.

  • John Patriot

    Better yet; let them drill holes in the USA.

  • Ron Alford

    Soros doesn't have any idea who he is playing with when he fools with Putin.

  • Jonathan

    Yup, Soros, now THERE'S somebody we can all believe and trust. He's got an absolutely perfect track record, after all.

  • Tabitha Bliss

    Wow. This is one area where I actually agree with the evil one. I honestly never thought I'd see the day that Soros & I were on the same page with anything.. He must REALLY hate Putin!
    Release the reserves & open Keystone. If Obama did just that he could dramatically improve his 'legacy'. It would really transform our current economic situation quite quickly.

    • Jonathan

      Many agree with you, as do I, except that I doubt there is anything strategic about releasing the SOR. With things shaping up in the world as they are, and the Obamanites doing their worldly best to stifle oil production on other than private lands, we may need those reserves for the purposes intended. It will take time to recover and restore what has been taken from us by this regime.

    • Xman3

      Well Tabitha, it is all about deception coming from Soros and Obama. I wonder how Soros is going to profit from this?

      America 'IMPORTS' around 50% of our oil and gas. If Obummer releases America's reserve to, get this, 'export' -- America now does not have necessary reserves. That falls into the category of "you can't fix stupid".

      All the while Obummer is continuing his 'war on American coal', 'war on American new oil and natural gas exploration/drilling/production, 'war on American energy and minerals' using his EPA, 'war on the Keystone pipeline', and oh yes, his bs war on women and poverty in America.

      It is all liberal, radical, democrat corruption, deception and lies and 50% of American voters fall for it.

  • Jean Henri Laprime

    Soros is almost right, but instead of releasing oil reserves we should open the keystone pipeline, increase domestic oil and gas production, including shale oil, and relax the regulations on coal production and use.

    • Jonathan

      Just remember, based on past actions by this man, many of which he has boasted about openly, no idea coming from Soros should be viewed as less than suspect.

    • Aubryn

      Agreed, but I don't think that was his point at all.

  • mbnick

    Another Democrat business stupid idea. As usual it also weakens the US. Next Obama will probably give what he now considers excess Military personnel to Russia.

    • Xman3

      Yep, mbnick. America 'IMPORTS' around 50% of our oil and gas. If Obummer releases America's reserve to, get this, 'export' -- America now does not have necessary reserves. That falls into the category of "you can't fix stupid".

      All the while Obummer is continuing his 'war on American coal', 'war on American new oil and natural gas exploration/drilling/production, 'war on American energy and minerals' using his EPA, 'war on the Keystone pipeline', and oh yes, his bs war on women and poverty in America.

      It is all liberal, radical, democrat corruption, deception and lies and 50% of American voters fall for it.

  • ABBAsFernando

    Clearly NAZIS still hate Communists.

  • Kaiser

    Let me see if I have this right. Reid says that the Koch Brothers control the Republican Party...and that is bad or corrupt. But the Democrat party has George Soros and Bill Gates...and that is good or OK.
    Do I have this right?

    • JoeTexan

      There are 50-odd people who donate more to political causes than the Koch brothers, and most of them are Democrats, including George Soros, Gates, Elon Musk, and lots of other tech and Hollywood types.

    • Kaiser

      Good point. I totally forgot about Hollywood libs.

    • Xman3

      Yep, anytime liberal democrats try to demonize Republicans, Conservatives and the Tea Party, the democrats are 10X as guilty. America's strategic oil reserves are clearly needed for America, not the world.

  • eric12325

    These two are idiots ,war mongers ,we should be working with Russia and Ukraine not against them and dividing everyone ,we could all be working together for a better world ,that will never happen with this idiot at the helm