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US Strategic Oil Reserve & Commercial Supply at Critically Low Levels

RiffRaff

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Primary source on Reuters, but I originally saw the initial indicators back in May when an AutoZone memo was allegedly leaked regarding oil shortages within 90 days. Possibly a conspiracy theory, but both Toyota and Nissan also sounded similar alarms back in May, so I'm leaning towards it being legitimate.

Here is what is not in question: US SPR fell to 311 million barrels last week due the government tapping it to keep US gas prices artificially low. The lowest operational level is supposed to be 316 million barrels due to the logistics of how they store it. That is both an economic and natural disaster of unprecedented proportions waiting to happen.

As of July 10th, total oil supplies in the United States was at 726.2 million barrels, counting both commercial supply and the SPR combined.

The United States consumes approximately 20 million barrels PER DAY, on average. You do the math. Even if they completely drain the SPR, which they theoretically cannot do, this country has approximately 35 to 45 days of oil supply remaining. This is assuming they keep releasing oil from the SPR into the domestic market as they have been at somewhere around 3 million barrels per day. A fuel crisis unmatched by anything in US history is due to hit sometime in September at the absolute latest. This will make the oil crisis after Hurricane Katrina look like a minor market anomaly.

I've been seeing too many energy analysts say the same thing to ignore this.

Beyond the economic ramifications, what happens when the US military starts to run low on fuel?

 
The US should never have touched the Strategic Reserve for political reasons. Keeping gas prices low is not a reason to raid the supply.
I agree, but Biden instituted a significant drain on the SPR because of Covid, and the current administration is instituting a significant drain to keep consumers happy before we could replenish it from the previous administration. This is going to come back to bite us in the ass hard. Some countries are already there and are rationing what little supply they have left. If the US hits a wall on oil supplies, everything comes to a screeching halt. Supply chains collapse completely because shipping companies can't afford fuel. Farmers won't be able to harvest this fall if they can't afford fuel. Both of those scenarios combined turn into a massive food shortage that most Americans do not know how to cope with.

You think Covid lockdowns were bad? Imagine fuel rationing and travel restrictions for every American and grocery stores unable to keep their shelves stocked.

The really huge problem is that even if the wars ended today and oil shipping returned to normal, it would take 45 days minimum for the first shipments to hit US supplies. We are very close to a critical tipping point.
 
Biden instituted a significant drain on the SPR because of Covid
Are you sure, honest question.
If I recall correctly, during the pandemic, oil demand collapsed, and oil prices even briefly turned negative.

Wasn’t it in 2022, something like 150 million barrels after Russia invaded Ukraine?
 
Are you sure, honest question.
If I recall correctly, during the pandemic, oil demand collapsed, and oil prices even briefly turned negative.

Wasn’t it in 2022, something like 150 million barrels after Russia invaded Ukraine?
I'd have to go back and look at the chart to double check the year, but that might be possible.
 
Biden sold SPR’s to China in 2022

And yes the SPR are extremely low but not as low as Biden’s sell down in 22

The differences is US oil production is also at record highs.

It needs fixed that is correct, and it is risky. The offer question though is current US oil production and refining actions going in the right direction.
 
Biden sold SPR’s to China in 2022

And yes the SPR are extremely low but not as low as Biden’s sell down in 22 correction thru April of this year
The differences is US oil production is also at record highs.

It needs fixed that is correct, and it is risky. The offer question though is current US oil production and refining actions going in the right direction.
 
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