Bill Overview
Title: Strategic Petroleum Reserve Replenishment Act
Description: This bill requires the Department of Energy to acquire additional petroleum products (up to a specified limit) for the Strategic Petroleum Reserve when the price of petroleum falls below a designated threshold.
Sponsors: Rep. Estes, Ron [R-KS-4]
Target Audience
Population: Global consumers of petroleum products
Estimated Size: 330000000
- The Strategic Petroleum Reserve's operation directly impacts the global oil market, and thus global consumers of petroleum products.
- A change in the US petroleum reserve levels can influence domestic energy prices, affecting American households and businesses.
- Oil is a globally traded commodity; changes in the US reserve can have ripple effects on global oil prices.
- Consumers and industries that rely on stable oil prices will be impacted.
- Energy security is a concern for geopolitics, which affects populations globally.
Reasoning
- The policy primarily affects people indirectly through its impact on oil prices, thus individuals' awareness about the policy's direct effects on them may vary widely.
- Low-income individuals who spend a significant portion of their budget on gasoline or heating oil may experience changes in their financial wellbeing more acutely.
- Industries heavily reliant on oil will see operational cost fluctuations, potentially affecting employees within those sectors.
- Energy policy typically has long-term effects on the economy and environment which tend to unfold gradually, affecting public sentiment and wellbeing.
- The policy may lead to increased national energy security which can lead to a sense of stability among the population, though this is more abstract and less visible in the immediate financial sense.
Simulated Interviews
Oil and Gas Engineer (Houston, TX)
Age: 35 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I think any move to stabilize oil prices is generally good for job security in my field.
- There's always a worry about the market volatility affecting our jobs, this could add a layer of assurance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Ride-share Driver (Los Angeles, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- If this policy can help lower gas prices, that would be great.
- Anything that stabilizes fuel prices is a relief, but I think it won’t make an immediate difference.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Software Developer (New York, NY)
Age: 28 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I honestly don’t see this affecting me directly.
- Maybe it helps with the broader economy? Not exactly sure.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Factory Worker (Detroit, MI)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 10/20
Statement of Opinion:
- If it keeps the oil prices steady, it'll definitely help keep my job stable.
- Frequent price hikes in oil sometimes mean budget cuts and shifts in factory operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Environmental Policy Advocate (Chicago, IL)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Policies like these sometimes make me worry about our commitments to renewable energy.
- I’m all for national security but not if it delays transition to cleaner energy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
Retired (Phoenix, AZ)
Age: 65 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- A stable gas price is very important for people on fixed incomes like mine.
- I just hope policies like these actually bring some relief at the pump.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Graduate Student (Seattle, WA)
Age: 23 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 11/20
Statement of Opinion:
- I’m more concerned about student debt than oil prices at the moment.
- It’s good if this helps maintain lower living costs though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Small Business Owner - Delivery Services (Dallas, TX)
Age: 30 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- The policy could help stabilize fuel costs for my business, which would be really helpful.
- Every cent counts in delivery, so anything that helps with gas prices is welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
Mechanic (Kansas City, MO)
Age: 54 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 9/20
Statement of Opinion:
- Stable oil prices mean stable customer flow for us in auto repair.
- Fluctuations make it really hard to predict how much work we’ll have.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Freelance Graphic Designer (Portland, OR)
Age: 40 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- The direct impact seems limited for me, but lower overall living costs are always a bonus.
- I don’t have much use for this policy directly, but if it keeps transportation costs down, that’s a good thing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $1500000000 (Low: $1000000000, High: $2000000000)
Year 2: $1500000000 (Low: $1000000000, High: $2000000000)
Year 3: $1500000000 (Low: $1000000000, High: $2000000000)
Year 5: $1500000000 (Low: $1000000000, High: $2000000000)
Year 10: $1500000000 (Low: $1000000000, High: $2000000000)
Year 100: $1500000000 (Low: $1000000000, High: $2000000000)
Key Considerations
- The fluctuation in crude oil prices can significantly impact budget forecasts, making cost estimates volatile.
- Geopolitical events could alter the effectiveness and expense of replenishing the reserve.
- The opportunity to purchase oil at lower prices will depend on global market conditions, which can be unpredictable.