Homesteading Forum banner
1 - 17 of 17 Posts

·
Registered
Joined
·
42,440 Posts
Discussion Starter · #1 ·
The U.S. Energy Information Administration said Wednesday that the Strategic Petroleum Reserve declined by nearly 7 million barrels in the week ended Sept. 16, leaving it at roughly 427 million barrels—the lowest since 1984. For the first time since 1983, the SPR now holds less oil than commercial storage.
 

·
Registered
Joined
·
42,440 Posts
Discussion Starter · #2 ·
The International Energy Agency initially thought Russia’s oil production would be cut by 3 million barrels a day after its invasion of Ukraine.

That turned out to be a wild overestimate. As of August, Russia’s exports were down just 400,000 to 450,000 barrels a day from prewar levels, according to the latest IEA report.
 

·
Registered
Joined
·
16,009 Posts
The president can use strategic petroleum reserves for 180 days. Our oil can be pumped out of storage at a maximum rate of 4.4 million barrels per day for 90 days. Then the extraction rate starts to decrease as the vaults become empty. Our current administrator announced that he will release 1 million barrels of oil per day for 180 days. At that rate, they can release oil continuously for almost half a year., although I am not certain how long it can be stretched out if done intermittently. The idea however, is to replenish those reserves once oil prices fall...
 

·
Registered
Joined
·
42,440 Posts
Discussion Starter · #4 ·
The president can use strategic petroleum reserves for 180 days. Our oil can be pumped out of storage at a maximum rate of 4.4 million barrels per day for 90 days. Then the extraction rate starts to decrease as the vaults become empty. Our current administrator announced that he will release 1 million barrels of oil per day for 180 days. At that rate, they can release oil continuously for almost half a year., although I am not certain how long it can be stretched out if done intermittently. The idea however, is to replenish those reserves once oil prices fall...
NOVEMBER 23, 2021•STATEMENTS AND RELEASES
Today, the President is announcing that the Department of Energy will make available releases of 50 million barrels of oil from the Strategic Petroleum Reserve to lower prices for Americans and address the mismatch between demand exiting the pandemic and supply.


I think their Brandon's target price is $80 per barrel. It has been over $80 for more than a year.

Do you think the price will rise as we attempt to replenish the reserve? Do we start and stop the refill as prices go over $80?

If it took him 180 days to drain it low, how long will it take to fill the tank?
 
  • Like
Reactions: nehimama

·
SM Entrepreneuraholic
Joined
·
18,160 Posts
As I posted in another thread, we will have low gas prices until the election and then the government has to start purchasing oil to refill the reserve. I have no idea how long the Ohio refinery will be shut down which could make things much worse for the midwest.
 

·
Registered
Joined
·
42,440 Posts
Discussion Starter · #9 ·
I got regular gas for $2.97 yesterday in a small Texas town. Lowest I have seen.
Same price here at Walmart. Others are a little over $3.

I wish diesel would come down. It has stayed up there
 

·
Registered
Joined
·
12,533 Posts
I was concerned when, in November 2021, the White House said it was going to tap into our oil reserves.
I do not believe he is going to refill the reserves. The white House will use any and all excuse not to refill the reserves.

Why? Because the agenda is to get the US off oil and onto solar, electric cars, etc..
 

·
SM Entrepreneuraholic
Joined
·
18,160 Posts
I was concerned when, in November 2021, the White House said it was going to tap into our oil reserves.
I do not believe he is going to refill the reserves. The white House will use any and all excuse not to refill the reserves.

Why? Because the agenda is to get the US off oil and onto solar, electric cars, etc..
I think you are right. There were rumors the Biden administration was going to start refilling the reserve when oil got below $80 per barrel, but it appears it was only a rumor.
  • In March, the U.S. government authorized the release of 1 million bpd of oil from the SPR over a period of six months.
  • Earlier this week, there were rumors that the U.S. administration may start refilling the SPR when oil prices fall below $80.
  • The U.S. Department of Energy has quashed those rumors, asserting that there is no trigger price and the SPR won’t be refilled any time soon.
The U.S. Does Not Plan To Refill Its SPR With Sub-$80 Oil
 

·
Premium Member
Joined
·
24,824 Posts
Gas went up 30¢ overnight here. :(
 

·
Registered
Joined
·
4,299 Posts
The US uses 18M barrels of oil per day...Releasing 7 M barrels from the SPR was a drop in the bucket and did absolutely nothing to change prices of fuel, but significantly weakened our ability to defend ourselves. There's a reason we even have a SPR, right?...But refilling the reserve will drive prices even higher due to it's sudden drag on the supply/demand ratio.

Fuel prices came down because we all drove less with $5 gas.
 

·
Registered
Joined
·
42,440 Posts
Discussion Starter · #16 ·
$4.20 for diesel at the little general store down the road. That would be the red stuff.
The red stuff is about 25 cents cheaper than on the road diesel here. Road diesel is $4.20 here.
 

·
Registered
Joined
·
42,440 Posts
Discussion Starter · #17 ·
The US uses 18M barrels of oil per day...Releasing 7 M barrels from the SPR was a drop in the bucket and did absolutely nothing to change prices of fuel,

Fuel prices came down because we all drove less with $5 gas.
I said the same thing.
 
1 - 17 of 17 Posts
Top