• 2 days U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 2 days Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 2 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 2 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 2 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 2 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 2 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 2 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 3 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 3 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 3 days Venezuelan Output Drops To 28-Year Low In 2017
  • 3 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 3 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 3 days Kinder Morgan Delays Trans Mountain Launch Again
  • 3 days Shell Inks Another Solar Deal
  • 4 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 4 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 4 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 4 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 4 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 4 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 4 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 4 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 4 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 5 days Norway Grants Record 75 New Offshore Exploration Leases
  • 5 days China’s Growing Appetite For Renewables
  • 5 days Chevron To Resume Drilling In Kurdistan
  • 5 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 5 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 5 days Nigeria Among Worst Performers In Electricity Supply
  • 5 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 6 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 6 days Saudis To Award Nuclear Power Contracts In December
  • 6 days Shell Approves Its First North Sea Oil Project In Six Years
  • 6 days China Unlikely To Maintain Record Oil Product Exports
  • 6 days Australia Solar Power Additions Hit Record In 2017
  • 6 days Morocco Prepares $4.6B Gas Project Tender
  • 6 days Iranian Oil Tanker Sinks After Second Explosion
  • 9 days Russia To Discuss Possible Exit From OPEC Deal
  • 9 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
Alt Text

Chinese Fuel Dump Weighs On Asian Refiners

Refiners across Asia are struggling…

Alt Text

Peak Oil Demand Is A Slow-Motion Train Wreck

Peak oil demand has been…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

U.S. Strategic Oil Reserves At 12-Year Low

US SPR

The U.S. Strategic Petroleum Reserve is at a 12-year low after the Department of Energy made deliveries of volumes sold earlier this year, Bloomberg reported. According to the Department of Energy, at of June 30, the SPR had 682 million barrels of crude in it, after more than 10 million barrels were sold over the first five months of the year.

Yet, there is no cause for concern: shale production, according to energy analysts, has created a comfortable cushion against potential shortages, and the U.S. simply does not need to store as much petroleum as it once did.

“You only need 60 days of your net import of crude and products in the emergency stockpiles,” Macquarie Capital analyst Vikas Dwivedi told Bloomberg. “Given the fact that we don’t net import that much any more, we only really need 300 million barrels.”

Daily U.S. oil imports for the week to June 23 averaged some 8 million barrels, and 8.1 million bpd was the average for the last four weeks, according to the Energy Information Administration’s last weekly petroleum data report.

Total oil and product imports stood at 9.83 million bpd. Exports of crude and products averaged 5.6 million. Net crude oil and products imports for the week to June 23 stood at 4.23 million barrels. According to Bloomberg, this compared with a high of 14.4 million barrels daily in November 2005. Related: The Downturn Is Over, But U.S. Oil Companies Face A Huge Problem

According to the Department of Energy, the SPR was at its highest at the end of December 2009, holding 727 million barrels of crude – equal to the capacity of the four storage sites.

Earlier this year, at the presentation of his draft budget for 2018, President Trump included a proposal for the sale of around half of the SPR, for proceeds estimated at US$16.6 billion over a period of 10 years. If the shale industry continues to pump at a growing rate, a 50-percent reduction in the strategic petroleum reserves over a decade would hardly be felt.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Danny Hangartner on July 06 2017 said:
    This is such old news. Since the Kuwait war with Iraq, Kuwait and Saudi Arabia pledged to maintain a USA ten year stockpile at $5.00 per barrel. This was in case of a lengthy war where the USA might need such a stockpile. The States were using those stockpiles unchecked. After awhile, a lot of the oil was sold off before it even hit the US. Of course, now that bigger players may be involved, such as China and Russia, the States no longer finds it in their interest to fight some ten year war. They shouldn't be allowed to sell it for their own profits as it was sold to them under the assumption that it was for war time.
  • Timothy Smith, SFO on July 07 2017 said:
    I'm not sure it is a big issue anymore to have the stockpiles. This was put in place during the Arab Embargo to protect our interests. We have abundant energy, selling down some makes sense now in my opinion while we invest in new federal leases, infrastructure and prices stablize.

    Timothy Smith, SFO
    Petro Lucrum, Inc.
    Single Family Office

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News