17 days
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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?
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.
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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.
I have no understanding of how oil markets work, so, please, educate me.
I can't explain the entire market, but I have a small anecdote.
There is oil in the ground and fuel in your tank and many markets in between.
More than once I heard the story that Av gas, the stuff used in small GA planes, not jets, is only refined for a couple weeks per year.
The refinery that makes it only sets up the equipment for this purpose for a short time each year based on supply, demand and educated guesses. The price at the pump varies all over the place during the year based on lots of different market conditions and speculation. On any given day, the stuff you put in your tank might have come out of the ground years ago and it's price during those years may have had a wild ride.
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A record number of supertankers is steaming toward the U.S. to load oil as shipowners look to capitalize on an increase in the nation’s crude exports.
Forty-eight vessels are bound for the country in the coming three months, according to data gathered November 3 by Bloomberg. That’s the most in at least six years.
The flow of vessels illustrates the changing energy landscape as the U.S. pumps more crude than ever before and the Organization of Petroleum Exporting Countries and its allies seek to prop up the market with supply curbs. U.S. crude exports have surged this year, government data show.
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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.
@taiwan_girl said in 17 days:
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.
It will if means of production are halted. That's the reason for it and it's a prudent one. Even if cars go all electric petroleum products are used in every facet of our economy.
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@taiwan_girl said in 17 days:
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.
It will if means of production are halted. That's the reason for it and it's a prudent one. Even if cars go all electric petroleum products are used in every facet of our economy.
It will if means of production are halted. That's the reason for it and it's a prudent one. Even if cars go all electric petroleum products are used in every facet of our economy.
I understand that, but to me, I still don't understand the purpose. For example, The US is currently an oil exporter.
But even so, what type of event would you think would justify the strategic oil reserve? Oil embargo again? Mid East war? Even during the Kuwait/Iraq war, there really was not much a change in overall world production.
To me, the available amount in the reserve is really just a "drop in the bucket" (pun intended) to the overall use of oil.
I don't think we should bring it down to zero, but it does to seem concerning to have about 300MM barrel vs. 600MM barrel.
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Obviously, not a concern for the president before President Biden. LOL
According to data from the Energy Information Administration (EIA), when Trump took office in January 2017, the SPR contained 695 million barrels. When he left office four years later, the SPR contained 638 million barrels. So, the level of the SPR actually declined while President Trump was in office.
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LOL. Much less right now. But I was just pointing out that previous presidents weren't too concerned about the SOR.
(And I agree with them. The US is a currently a net exporter for the first time since before 1950. (Thank you Prescient Biden!!) I just believe that if there is a event so so catastrophic, having an extra day or 10 of oil reserves is not going to make a difference)
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LOL. Much less right now. But I was just pointing out that previous presidents weren't too concerned about the SOR.
(And I agree with them. The US is a currently a net exporter for the first time since before 1950. (Thank you Prescient Biden!!) I just believe that if there is a event so so catastrophic, having an extra day or 10 of oil reserves is not going to make a difference)
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LOL. Much less right now. But I was just pointing out that previous presidents weren't too concerned about the SOR.
(And I agree with them. The US is a currently a net exporter for the first time since before 1950. (Thank you Prescient Biden!!) I just believe that if there is a event so so catastrophic, having an extra day or 10 of oil reserves is not going to make a difference)
@taiwan_girl said in 17 days:
The US is a currently a net exporter for the first time since before 1950. (Thank you Prescient Biden!!)
You misspelled "Trump."
https://www.eia.gov/energyexplained/oil-and-petroleum-products/imports-and-exports.php
The United States became a total petroleum net exporter in 2020
In 2020, the United States became a net exporter of petroleum for the first time since at least 1949.1 In 2022, total petroleum exports were about 9.52 million barrels per day (b/d) and total petroleum imports were about 8.33 million b/d, making the United States an annual net total petroleum exporter for the third year in a row. Total petroleum net exports were about 1.19 million b/d in 2022. Also in 2022, the United States produced2 about 20.08 million b/d of petroleum and consumed3 about 20.01 million b/d. Although U.S. annual total petroleum exports were greater than total petroleum imports in 2020, 2021, and 2022, the United States still imported some crude oil and petroleum products from other countries to help to supply domestic demand for petroleum and to supply international markets.
It's complicated.
The United States remained a net crude oil importer in 2022, importing about 6.28 million b/d of crude oil and exporting about 3.58 million b/d. Some of the crude oil that the U.S. imports is refined by U.S. refineries into petroleum products—such as gasoline, heating oil, diesel fuel, and jet fuel—that the U.S. later exports. Also, some of imported petroleum may be stored and later exported.
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I’m with you TG.
This is a coffee and donut shop gossip issue. Nothing more.
Next the topic will move on to whether Soros György is behind it all.
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The man who helped ruin San Francisco. I could go on, but what's the point? Until a Soros-backed DA turns your little part of the world into a revolving door criminal justice system, you don't care.
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The man who helped ruin San Francisco. I could go on, but what's the point? Until a Soros-backed DA turns your little part of the world into a revolving door criminal justice system, you don't care.
The man who helped ruin San Francisco. I could go on, but what's the point? Until a Soros-backed DA turns your little part of the world into a revolving door criminal justice system, you don't care.
You pretty much blame him for everything, though. TBH, I think it's a bit unhealthy.
Foreign born billionaires with an unhealthily high level of political influence? Conservatives would never stoop to that sort of thing.
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I think he wears blame where blame is due.
Compare him against the Koch brothers and get back to me.
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I think he wears blame where blame is due.
Compare him against the Koch brothers and get back to me.
