Posted on 11/24/2023 6:15:43 AM PST by Miami Rebel
It is déjà vu for major oil producers, who are again considering steeper production cuts. It took only a month after the Hamas attacks on Israel unleashed a punishing war for oil prices to fall below their pre-Oct. 7 level. The steep drop in oil prices last week, with Brent crude briefly dropping to $77 per barrel, led to speculation that the Organization of the Petroleum Exporting Countries and allied producers (OPEC+) will decide to cut production at its next meeting. OPEC’s last-minute decision to delay the meeting, now scheduled for Nov. 30, will only add to the speculation.
U.S. crude oil production reached an all-time high in October of 13.2 million barrels a day despite the industry’s ongoing spending restraint.
(Excerpt) Read more at barrons.com ...
November 2019 US production peaked at 13 million barrels per day.
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS2&f=M
If we are doing 13.2 million a daily we would be doing 16 with Trump in charge and gas would be under 2.00.
This is all that is keeping biden afloat if crude goes away hes toast.
Hey. At least muvver erf will okay and no longer oppressed by humans. Or some such 🐂💨💩
Is there anything left in our SPR?
Last I read we were down to about 25% of what we had when Biden started draining it.
“Is there anything left in our SPR?”
US Crude Oil in the Strategic Petroleum Reserve Stocks is at a current level of 351.27M, unchanged from 351.27M last week and down from 392.12M one year ago.
From DOE, 10/19/2023: “Today, the U.S. Department of Energy’s (DOE) Office of Petroleum Reserve announced that that it will post monthly solicitations to purchase oil for the Strategic Petroleum Reserve (SPR) through at least May 2024, beginning with a solicitation for up to 6 million barrels of oil for delivery in December 2023 and January 2024. DOE will purchase oil in those months where it can do so at a good deal for taxpayers: a price of $79 dollars per barrel or below, far less than the average $95 per barrel DOE received for 2022 emergency SPR sales.”
Still, that’s way under historic levels.
“ Administration officials say restocking the SPR won’t halt the price crash rocking the shale industry, but they say it makes sense on energy security grounds and would benefit taxpayers. Congress has been selling off oil from the reserve in recent years to fund unrelated priorities, but a sustained period of low prices represents a good opportunity to fill the SPR back up, the administration says.
“President Trump’s directive to buy oil at a competitive price for the SPR is a common-sense move benefiting taxpayers and supporting our nation’s economic and national security interest,” Hynes said. “The American energy sector is a major driver of our nation’s economy, and it is being significantly harmed by the impacts”
Congress has been selling off oil from the reserve in recent years to fund unrelated priorities,
Biden administration has been selling off as it is an easy source of cash.
Please look at the date of publication. Thank you.
Due to lower demand.
https://www.energy.gov/ceser/strategic-petroleum-reserve
SPR oil is sold competitively when the President finds, pursuant to the conditions set forth in the Energy Policy and Conservation Act
“November 2019 US production peaked at 13[.000] million mpd...
Recently exceeded this Aug at 13,053 mbpd.
The SPR isn’t meant for ongoing price control, it’s for damage control in case of a shortage of product due to war, etc. SPR was pretty full when oil hit $147 a barrel under Bush. He threatened to draw it down and oil went below $50. When the SPR is low it isn’t as much of a threat to countries trying to affect the price. In other news, Biden is still an idiot.
“Biden administration has been selling off as it is an easy source of cash.”
Don’t forget selling off Syrian oil to fund moar war and raping Iraqi women as an MWR signup activity.
OPEC current members
Member Countries
Algeria
Angola
Congo
Equatorial Guinea
Gabon
Iran
Iraq
Kuwait
Libya
Nigeria
Saudi Arabia
United Arab Emirates
Venezuela
https://www.opec.org/opec_web/en/about_us/25.htm
The expansion of oil production from shale thanks to new technology (which took place after 2008) makes it far easier to increase production rapidly should circumstances (i.e., price) warrant.
Considering the world usage how long does it take to
replace those gallons or are they never replaced? If
never then what is the available length of time does
the world have before oil no long exist?
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