ENER Energy Department to buy 3 million barrels to replenish Strategic Petroleum Reserve

jward

jward

passin' thru

Energy Department to buy 3 million barrels to replenish Strategic Petroleum Reserve​


Breanne Deppisch​
December 08, 2023 12:57 PM
The Department of Energy said Friday it is looking to purchase up to 3 million barrels of oil to refill the Strategic Petroleum Reserve in an effort to replenish the nation's emergency stockpile after it was drained last year to a 40-year low.
In a solicitation notice, Energy Department officials said they are seeking to buy up to 3 million barrels of sour crude for the Strategic Petroleum Reserve for delivery in March 2024.


More specifically, officials said they are looking to purchase sour crude to replenish the Big Hill storage facility in Texas.
Last week, it also announced a similar solicitation for up to 3 million barrels of SPR oil for delivery in February 2024. The Energy Department has already purchased roughly 9 million barrels for the SPR at an average of $75 per barrel and secured nearly 4 million barrels in accelerated exchange returns.

The update comes after President Joe Biden ordered the sale of 180 million barrels of SPR oil last March, the largest one-time drawdown in history, in an effort to stabilize soaring energy costs for consumers in the wake of Russia's invasion of Ukraine.
While the SPR sales did help alleviate prices for consumers, they also depleted the nation's emergency stockpile, sending levels plummeting to their lowest level since the stockpile's creation in the 1980s and prompting concerns that the low supply could leave the United States vulnerable and resource-strapped in the event of an emergency.

More recently, the Energy Department has struggled to refill the U.S. emergency stockpile. Last October, it outlined a buyback plan targeting oil prices of between $67 to $72 per barrel to replenish the reserves. Later, it raised the price to $79.
There are physical limitations to how much oil can be funneled back into the SPR, which consists of four enormous underground salt caverns along the Gulf Coast in Texas and Louisiana.
In an interview on BloombergTV this week, Deputy Energy Secretary David Turk said the constraints limit purchases to 3 million barrels a month. "We are refilling as much as we can," he said. "We've been doing that for the last several months. And at this price level, we'll keep doing it."
Turk said, "We hope we can bring more capacity online at these price levels to buy as much as we can to refill to make sure we've got that available when we need it in the future."

Current SPR levels stand at 352 million barrels, according to data from the Energy Information Administration, just slightly higher than in July, when levels reached an all-time low of 347,000 barrels.
As of this writing, two of the SPR sites are offline for maintenance.



www.washingtonexaminer.com

Energy Department to buy 3 million barrels to replenish Strategic Petroleum Reserve

The Department of Energy said Friday it is looking to purchase up to 3 million barrels of oil to refill the Strategic Petroleum Reserve in an effort to replenish the nation's emergency stockpile after it was drained last year to a 40-year low.
www.washingtonexaminer.com www.washingtonexaminer.com
 
M

Murt

Veteran Member
constraints limit purchases to 3 million barrels a month. "We are refilling as much as we can," he said. "We've been doing that for the last several months.

if they removed 180 million barrels at the rate quoted above it will take 5 years to get back to where we were
or
am I missing something
 
W

WalknTrot

Veteran Member
A drop in the bucket, idjots.

That said - despite all the kerfuffle in the Middle East, gas is cheap. I topped off at 2.53/gal unleaded on Friday.
 
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wobble

wobble

Veteran Member
Old article about HOW MUCH IS 60 MILLION BARRELS OF OIL?


(Reuters) - The International Energy Agency's on Monday surprised oil traders by announcing the release of strategic government petroleum stockpiles in a bid to push down prices and support the global economy.

But just how big is the 60 million barrels of oil they plan to release over the next 30 days?

BY THE NUMBERS - HOW MUCH IS 60 MILLION BARRELS OF OIL?

* $6.42 billion -- the value of 60 million barrels based on the Brent crude oil benchmark.


* 30 -- the number of supertankers needed to move 60 million barrels of oil by sea. One supertanker carries 2 million barrels. By contrast, Italy consumes 1.5 million barrels per day.

* 3,815 -- the number of Olympic sized swimming pools you could fill with the oil.

* 50 days -- the number of days of lost Libyan output it is roughly equivalent to.

* 78.8 million -- the number of Hummer H2 SUV's petroleum tanks that could be filled with the oil.


* 1.3 days -- it is about 1.3 days of total oil demand in the member countries of the Organization of Economic Co-operation and Development (OECD).

* 2/3 -- it is roughly two-thirds of just one day's global oil demand in the third quarter of this year, estimated by the IEA at more than 90 million barrels.

* 3 -- it is just over three days of total U.S. oil consumption or 6.5 days of U.S. gasoline demand.


* 18 -- the number of days that the entire continent of Africa's oil demand could be met by 60 million barrels.

* 1.6 billion -- it is just 3.75 percent of all emergency stocks held by the 28 member countries of the IEA, which currently total around 1.6 billion barrels

* 8.3 percent -- It is the equivalent of 8.3 percent of the U.S. Strategic Petroleum Reserve, which currently stands at 726.5 million barrels.


* 60 million -- the number of standard sized American bath tubs that the oil could fill, based on an average size of 42 gallons.
 
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Dobbin

Dobbin

Faithful Steed
Murt said:
so --is it possible that the oil was sold to another country and then sold back to us at a profit with the buying country never really taking delivery
Click to expand...
Yes. The world market is "fluid" (literally) and all they need is tanks to contain the oil.

Dobbin
 
S

Squid

Veteran Member
The price is cheap now. Seem’s like now would be a good time to buy. Why wait until spring when prices are likely heading up.

I don’t buy any BS put through established media. Brandon and the evil democrats have no concept if the future danger they have placed the US in trying to keep gas prices in check.

I won’t believe it until its refilled, until then posturing and stuffing.
 
Illini Warrior

Illini Warrior

Illini Warrior
can't believe the DNC is bothering - Obammy left the cupboard empty - even tho they cheated like hell to get Hellery voted in >>>>

SOMEBODY must be getting a cut $$$$$
 
SquonkHunter

SquonkHunter

Geezer (ret.)

Energy Department to buy 3 million barrels to replenish Strategic Petroleum Reserve​

Click to expand...
Well, at least it's a start. The Strategic Reserve should be completely refilled, expanded and then left the hell alone, not to be used unless in case of all out war or other great national disaster. Not for buying votes! FJB! :mad:
 
M

Murt

Veteran Member
seeking to buy up to 3 million barrels of sour crude
(thanks to Plain Jane from her post on Brazilian Army on Hight Alert)
The dispute flared up as the U.S. lifted oil sanctions on Caracas temporarily in a bid to increase the supply of heavy crude for Gulf Coast refineries.

when I saw the sour crude reference it caused me to wonder if we were getting oil from Venezuela
now we know
thanks Joe ---thanks alot
 
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