![]() Plans were to start replenishing the SPR as soon as prices fell to between $67 and $72 per barrel but when price did fell to these levels, the administration deflected, indicating it was in no rush to start buying. Last year, the Biden administration released a total of more than 220 million barrels from the system to counter rising retail fuel prices. It is the lowest level since December 1983. The SPR currently holds 372 million barrels of crude oil, down from 638 million at the beginning of 2021. "The Nation's top geoscientists at DOE's Sandia National Laboratory continue to closely monitor cavern integrity, and the SPR remains operationally ready to respond to future supply disruptions, should they occur," she added. “What this means is that in the event of a supply outage – price can respond in a non-linear nature,” he added.The response of Granholm’s department came from another official, Kathleen Hogan, who said that "The necessary emergency sales that took place in 2022 did not damage our SPR pipelines or caverns." Since the directive in 2001, the capacity of the SPR has. When asked if the SPR stock was at a dangerously low level, Virendra Chauhan, the head of APAC at Energy Aspects, told Rigzone, “I would argue that you need to look beyond just the SPR and talk about general inventory levels - both commercial and strategic are comfortably below the five-year average”. At the time of President Bushs directive, the SPR contained about 545 million barrels (86,600,000 m3). “With onstream diversified domestic production today at nearly 13 million barrels per day, it provides a robust buffer to the strategic need of significant SPR storage volumes,” the analyst added. domestic production, before the surge in U.S. “Importantly, the SPR was filled to historic peak levels (727 million barrels) in an era of cratering U.S. demand in a reduced supply global oil market”. oil production, “these provide some support as well in the case of a need to meet U.S. commercial crude oil inventories have been climbing and noted that, with growing U.S. The WoodMac analyst highlighted that U.S. Note this is about half of what was achievable at the end of 2020, when capability was 4+ million barrels per day draw capability for 120 days,” the analyst continued. “Somewhere below the 122 million barrel inventory level is where the drawdown capacity is significantly reduced. With current inventory now sitting at 371 million barrels, the 4+ million barrel per day max drawdowns could still be achieved for around 60 days in the event of an emergency. SPR levels are currently low compared with previous decades, but can still be drawdown during emergencies, although at a slower rate,” the analyst added. “We do not see dangerously low SPR stocks operationally or strategically,” a WoodMac analyst told Rigzone. So, is the SPR stock at a dangerously low level? Not according to analysts at Wood Mackenzie (WoodMac). ending stocks of crude oil in the SPR peaked on January 8, 2010, at 726.61 million barrels, according to a chart posted on the EIA website, which stretched back to August 1982. ![]() Energy Information Administration (EIA).Īs of January 20, these stocks stood at 371.57 million barrels, compared to 638.08 million barrels on January 22, 2021, EIA data showed. ending stocks of crude oil in the strategic petroleum reserve (SPR) have dropped more than 40 percent in two years, according to the latest data from the U.S.
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