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Hi guys,
So the strategic oil reserve is being taped 1 mil a day for 90 days. So some questions here....hope you can help. In no special order.....after a few longnecks, what's the point? lol.....
1. How much can be drawn down before you have to stop?

2. How much is in the reserve?

3. I have heard that Australia and Britain also have oil in there. Are there more countries that have some in there?

4. How long until you must replace the oil?

5. How?....Is it in the budget or do you just print more money?

6. Where does the oil come from: OPEC or U.S.?

7. How often can we do this? Every year?

8. Who is in charge of it? the President, or others also?

9. Is it US refined and kept in the U.S.?

10. Is it kept safe, say, like Fort Knox? Is it on military ground---no terrorists?

Just some thoughts and thanks in advance for your help.

God bless
the Pudd

Comments

  • You might start HERE if you already haven't.
  • edited August 2022
    This US SPR status from Twitter is from June and you may look for updated data from the IEA. There was also some recent news on changing the law on SPR buys from the current bids-system to buying in the futures markets or with forward-contracts, as appropriate. Realize that the SPR activities are not for profits but to stabilize the US oil supply-demand and prices.
    https://twitter.com/LizAnnSonders/status/1539195742753116160

    image
  • edited August 2022

    Strategic Petroleum Reserve

    From: Fossil Energy and Carbon Management

    Excerpts from that site:
    SPR Quick Facts

    The Strategic Petroleum Reserve is a U.S. Government complex of four sites with deep underground storage caverns created in salt domes along the Texas and Louisiana Gulf Coasts.

    Highest inventory - The SPR was filled to its then 727 million barrel authorized storage capacity on December 27, 2009; the inventory of 726.6 million barrels was the highest ever held in the SPR.

    Previous Inventory Milestones

    2008. Prior to Hurricane Gustav coming ashore on September 1, 2008, the SPR had reached 707.21 million barrels, the highest level ever held up until that date. A series of emergency exchanges conducted after Hurricane Gustav, followed shortly thereafter by Hurricane Ike, reduced the level by 5.4 million barrels.

    2005. Prior to the 2008 hurricane releases, the former record had been reached in late August 2005, just days before Hurricane Katrina hit the Gulf Coast. Hurricane Katrina emergency releases of both crude oil sales and exchanges (loans) totaled 20.8 million barrels.

    1977. First oil was delivered to the newly constructed SPR, 412,000 barrels of light sweet crude.

    Current authorized storage capacity - 714 million barrels

    Fill status - The SPR completed fill on December 27, 2009 with a cargo that arrived and began to unload on Christmas Day. The cargo was 493,000 barrels of Saharan Blend, a light sweet crude that was delivered to the Bryan Mound site. A sale and drawdown in 2011 reduced the inventory to 695.9 million barrels.

    Current days of import protection in SPR - At the end of CY 2021 (as of December 31, 2021), the SPR’s crude oil inventory was 594.7 MMbbl. This is equivalent to approximately 1,206 days of supply of total U.S. petroleum net imports.

    International Energy Agency requirement - 90 days of import protection (both public and private stocks). In past years, the United States has met its commitment with a combination of SPR stocks and industry stocks. The days of import protection may vary based on actual net U.S. petroleum imports and the inventory level of the SPR.

    Average price paid for oil in the Reserve - $29.70 per barrel

    Drawdown Capability


    Maximum nominal drawdown capability - 4.4 million barrels per day
    Time for oil to enter U.S. market - 13 days from Presidential decision

    Investment to date - About $25.7 billion ($5 billion for facilities; $20.7 billion for crude oil).
  • As for, "Is it safe?", think back in time (1922) to the Teapot Dome Scandal.
    In today's world, what is safe from predators?
  • I am really happy to see President Biden release SPR oil into the market. I know how to make some money when markets are manipulated. A big Thank You!
  • Since the oil markets are always a masterwork of manipulation you have plenty of chances to make your money. Doesn't take a president to do anything. Go for it!
  • Agree. Crude oil prices dropped to 7 months low today. Gasoline prices also falling.
  • US SPR status update from Twitter.

    image
  • US SPR status update from Twitter.

    image

    Guy's got an agenda. But I won't argue with the chart provided. WOW. Lowest since '85. Not much reserve left to tap, then.
  • edited August 2022
    @Crash, I extracted only the chart and skipped the rant (-:).

    Comparing with an earlier chart posted, note that was an ESTIMATE in late-June of what the SPR level may be in October. This new chart is showing the CURRENT SPR level. The remaining drawable capacity is low as the SPR would never be taken down to 0.
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