17 days

[Jolly]

Worse than I thought ...

https://www.thegatewaypundit.com/2023/10/strategic-petroleum-reserve-near-historic-lows-biden-drained/

[taiwan_girl]

I asked before in other threads. What, realistically, is the purpose of the strategic reserve?

While the graph says that there is a 17 day supply, I would think that getting oil from the reserve is not a simple task. I bet that the amount that can be taken from the reserve every day, shipped to tankage/refineries/petrochemical factories, regardless of how full it is, would be much much much less than US daily requirement.

Plus, the domestic production of oil is pretty great, so saying that there is X days supply seems misleading.

But, it gets back to my original question. I really dont see the purpose for it.

The Saudi Arabia economy is much much different from 1970 when they cut off oil, so I think they realize they have to keep the oil flowing. And, I dont see there being an event that would be long lasting based on current events.

And If there is a such a major event, having 10 more days supply of oil won't really matter. Just my thoughts.

[jon-nyc]

It seems like the right metric, it’s similar to the way non-profits measure cash reserves. People understand that it doesn’t mean there are scenarios where it runs out in 17 days.

It’s a shame we didn’t fill it even more in 4/2020 when they were paying you to take oil out of Cushing.

[Copper]

@taiwan_girl said in 17 days:

I would think that getting oil from the reserve is not a simple task.

I think it looks like that graph went down pretty quickly.

Mr. Biden somehow figured out how to get it.

https://www.energy.gov/ceser/strategic-petroleum-reserve

[Renauda]

As I’ve said before the US has unfettered access to over 165 billion bbls in proven oil reserves here. Most of it is already earmarked for the US market.

This strategic reserve concern is mostly a Chicken Little moment characteristic of media baiting along partisan lines.

[Jolly]

Unless you've got that oil sitting in tanks, you still have to get it out of the ground.

As for the strategic reserve, it's sitting in the middle of multiple refineries and petrochemical plants.

[Renauda]

We’re quite good at shovelling it out of the ground and sending it to the upgrader for transport by pipeline or rail in your direction.

[kluurs]

The industry guy I follow says all the focus on the strategic reserve is a bit of a red herring. We're currently producing more oil than any time in history.

[Jolly]

How does that stack up vs. use?

[jon-nyc]

@kluurs said in 17 days:

We're currently producing more oil than any time in history.

Thank you, President Biden.

[Axtremus]

@jon-nyc said in 17 days:

It’s a shame we didn’t fill it even more in 4/2020 when they were paying you to take oil out of Cushing.

In hindsight we should have. But to be fair, we also had more pressing concerns back in 4/2020.

[Axtremus]

@jon-nyc said in 17 days:

@kluurs said in 17 days:

We're currently producing more oil than any time in history.

Thank you, President Biden.

Big Oil Brandon.

[Jolly]

If we're producing so much, why haven't we refilled the SOR?

[Copper]

@kluurs said in 17 days:

The industry guy I follow says all the focus on the strategic reserve is a bit of a red herring. We're currently producing more oil than any time in history.

And the current production statistic is a bit of a red herring.

The topic is the reserve.

Mr. Biden has managed it unwisely.

[George K]

@Copper said in 17 days:

@kluurs said in 17 days:

The industry guy I follow says all the focus on the strategic reserve is a bit of a red herring. We're currently producing more oil than any time in history.

And the current production statistic is a bit of a red herring.

The topic is the reserve.

Mr. Biden has managed it unwisely.

Well, where, exactly, IS all that oil that we’re drilling? Are we selling it?

I have no understanding of how oil markets work, so, please, educate me.

[jon-nyc]

@Jolly said in 17 days:

If we're producing so much, why haven't we refilled the SOR?

Price is too high to refill.

[taiwan_girl]

@kluurs said in 17 days:

We're currently producing more oil than any time in history.

And in other news

U.S. crude oil exports in the first half of 2023 averaged 3.99 million barrels per day (b/d), which is a record high for the first half of a year

[George K]

@jon-nyc said in 17 days:

@Jolly said in 17 days:

If we're producing so much, why haven't we refilled the SOR?

Price is too high to refill.

Thanks, President Biden.

/sarc

OK - I don't get it.

As I said, I have no understanding of oil markets (or any other, for that matter)...

So, 'splain me this (and type real slow, so I don't miss anything...

We're producing more than ever, but the price is still too high. Is this a refinery problem, storage problem, contract with other nations problem?

What?

[taiwan_girl]

@George-K said in 17 days:

Is this a refinery problem,

At least in Thailand (and I think in other parts of the world as well) it is a capacity problem with refineries. Refineries that are "on line" are running pretty much at 100%.

[Renauda]

@George-K

We're producing more than ever, but the price is still too high. Is this a refinery problem, storage problem, contract with other nations problem?

What?

Seems to me it’s a made up and manufactured problem resulting from donut shop gossip. Nothing more.