The Strategic Petroleum Reserve (SPR) is an emergency stockpile of petroleum maintained by the United States Department of Energy (DOE). It is the largest publicly known emergency supply in the world, with underground tanks in Louisiana and Texas. Strategic petroleum reserves are emergency crude stockpiles stored to support economic activity in the event of a supply disruption. There has been no actual supply disruption, only extreme high prices resulting from Biden Administration policies.
On March 31, 2022 — in an attempt to fight higher oil and gasoline prices — President Biden announced the release of one million barrels of crude oil a day for six months from the SPR.
At its high point in 2010, the US Strategic Oil Reservev reach 726.6 million barrels. Since December 1984, the level has never been lower than 450 million barrels — until now.
Consider that with the U.S. producing 12 million BPD, an extra one million BPD pushes total U.S. “supply” (which isn’t sustainable, because it relies on depleting the SPR) back up to the all-time pre-Covid high of 13 million BPD.
Ultimately, drawing down the SPR was a political decision. Think about it. An administration that has frequently emphasized the importance of reducing carbon emissions is trying to increase oil supplies to bring down rising oil prices — which will in turn help keep demand (and carbon emissions) high.
But even though the Biden Administration wants to address rising carbon emissions, high gasoline prices cause incumbents to lose elections. So, they try to tame gasoline prices even though it contradicts one of their key objectives of reducing carbon emissions.
The SPR has now been depleted since President Biden took office from 640 million barrels to 450 million barrels. This depletion is consistent with recent history. Historically SPR volumes tended to grow during Republican administrations and to fall during Democratic administrations. That pattern has held true since 1980.
Presidents Clinton and Obama both used the SPR to try to ease high gasoline prices around election time, while Republican presidents (until Donald Trump) added to the SPR. President Trump drew down about 10% of the SPR during his term.
President Biden has announced steps to replenish the SPR, “likely after FY2023”, and in my opinion most likely after the 2024 elections. President Biden’s gamble to deplete the SPR in order to fight high oil prices may not hurt him at all. Of course, if for some reason we had a true supply emergency and found ourselves needing that oil, it would be looked upon as a terrible decision.
Not to mention the physical damage those drawdowns do to the man-made, artificial SALT DOMES or CAVERNS that the oil is actually stored in.
To remove oil from a SPR storage facility (SALT DOME) FRESH WATER has to be pumped in, gallon for gallon, to replace the oil, which floats on top of that water.
Given that that water is fresh, it has a capacity to hold dissolved salt, and so, each time fresh water is pumped in, some damage occurs to the SALT DOME due to salt being dissolved off the walls.
This is all known and has been known for a long time, and there never was an idea that these EMERGENCY STORAGE FACILITIES could be pumped down over and over and over again, or depleted as Joe Biden is doing, without damaging the structural integrity of the salt dome, which is why they are known as EMERGENCY STORAGE!
But I guess it really is an emergency when you are a fool like Joe Biden with a failing presidency who needs some gimmick to fool the voters with.
Looking at this as an engineer would look at it, and as a responsible public official charged with protecting taxpayer property like the SPR should look at it, we have this important question before us as citizens and taxpayers, to wit:
Are there ramifications and repercussions to Joe Biden removing 1 million barrels of oil per day for six months from the SPR, which oil is held in hollowed-out salt caverns on the coasts of Louisiana and Texas?
And by way of review, how do you remove any oil from the SPR?
And that answer, according to Energy.gov, is as follows:
The fact that oil floats on water is the underlying mechanism used to move oil in and out of the SPR caverns.
To withdraw crude oil, fresh water is pumped into the bottom of a cavern.
The water displaces the crude oil to the surface.
After the oil is removed from the SPR caverns, pipelines send it to various terminals and refineries around the nation.
end quotes
But, hey, all you grade school children out there, and this is elementary – doesn’t fresh water dissolve salt?
So by continually pumping in fresh water to remove oil, won’t that damage the salt caverns?
For that answer, let’s go to a technical article from AAPG titled “The Good, the Bad and the Ugly – The Strategic Petroleum Reserve” in December 2016 by Barbara Kutchko, where we learn as follows:
The U.S. Strategic Petroleum Reserve (SPR) is facing significant challenges related to the storage and availability of its crude oil resources.
end quotes
Keep in mind that this is now six (6) years later.
Going back to that article, it continues as follows:
Approved for construction by the 1975 Energy Policy and Conservation Act (EPCA), the storage sites were envisioned to be needed for 25 years and are subject to an estimated five drawdown cycles (Shages, 2014).
In retrospect, the design has not matched actual use, and this has led to degradation of the SPR and impacted its ability to perform its function.
end quotes
AN ESTIMATED FIVE DRAWDOWN CYCLES!
And again, that is six (6) years ago.
Going back to the article:
The SPR stores crude oil (either sweet or sour) in 62 underground salt caverns located at four different sites in Texas and Louisiana.
The official storage capacity is 727 million barrels, based on sonic measurements.
A 2010 study concluded there was a significant mismatch in design and use of the storage caverns.
Instead of the initial estimated five large drawdown cycles, a large number of small drawdowns occurred over the previous 20 years.
From 1996 through 2014, there were 14 instances of oil removals less than 10 million barrels.
These multiple drawdowns have caused cavern deformation, salt falls and other damage to the cavern integrity.
end quotes
PAY ATTENTION TO THAT LAST SENTENCE!
That was six (6) years ago, and this is six (6) years later, and now we have what are in actuality massive drawdowns compared to the past, which means massive injections of fresh water into the salt caverns, which again takes us back to the article, to wit:
In addition, these underground salt caverns are shrinking due to tectonic stresses.
The cavern shrinkage (aka closure) is estimated to be approximately two million barrels per year – but may be significantly higher.
Salt is a unique geologic material with complex mechanical properties.
It is often modeled as a non-Newtonian fluid.
At high temperatures and pressures salt behaves like a plastic.
It will behave more like a liquid in the sense that it flows even under small deviatoric stresses.
Salt domes make a perfect storage medium in that they do not react with the oil and are self-healing.
The plastic behavior of salt will cause it to naturally close fractures or gaps and prevent any leakage.
However, salt domes also are under constant geologic pressure (i.e. salt creep) and these stresses are causing the caverns to shrink (Shages, 2014).
The SPR attempts to manage the shrinkage by leaving a bed of salt brine at the bottom of each cavern and by keeping their caverns under a pressure of approximately 800 psi (personal communication, SPR personnel).
Salt leaching offsets some of the shrinkage.
Crude oil is extracted from the cavern by injecting fresh water or under-saturated brine down one well and produced in a secondary well.
The injection causes, for example, 15 barrels (2.38 m3) of salt to be dissolved for every 100 barrels of oil removed from a cavern.
end quotes
FOCUS ON THAT, people – FIFTEEN BARRELS OF SALT ARE DISSOLVED FOR EVERY 100 BARRELS OF OIL REMOVED FROM A CAVERN.
So by removing a million barrels of oil a day for six months, which was never envisioned in the original design of the SPR, isn’t Joe Biden going to cause some serious damage to the salt caverns?
Let’s go back to the article and see:
The mismatch between original design and actual utilization of the SPR’s caverns has led to the development of significant negative impacts to cavern integrity, wellbore integrity and the ability to maintain optimal mission readiness.
One operational limitation is that whenever work is done to the cavern or well, the caverns must be depressurized.
Removing cavern pressure causes the rate of shrinkage to increase rapidly.
Thus, the repeated removal of small volumes of oil over the life of a cavern has led to serious consequences on the shape and integrity of the caverns:
Dissolution of salt during a drawdown always begins at bottom of cavern.
If cavern is only partially emptied,the shape of cavern will become distorted with a bulge at the bottom.
Gravity puts stress on the overhanging salt formation.
Massive falls can occur and damage hanging steel tubulars.
Cavern deformation and shrinkage is damaging well casings and cement.
end quotes
So, people, to save his failing presidency by removing a million gallons of oil a day and replacing it with water, which dissolves the salt, is this moronic, knee-jerking idiot Joe Biden going to seriously **** up the salt caverns that hold the oil in the SPR?
Stay tuned is all I can say.
And by way of providing some essential background here:
Reuters
“Oil edges up from seven-month low as Russia threatens export halt”
By Scott Disavino
September 8, 2022
U.S. crude stockpiles surged by nearly 9 million barrels last week due to a combination of increased imports and ongoing releases from government emergency reserves, the Energy Information Administration said.
“Most of that oil in that build came from the Strategic Petroleum Reserve.”
“The quicker we empty out the SPR, the bigger the draws are going to be in the future,” said Phil Flynn, an analyst at Price Futures Group.
U.S. Energy Secretary Jennifer Granholm said Joe Biden’s administration was weighing the need for further releases of crude oil from the nation’s emergency stockpiles.
**********************************
Reuters
“U.S. evaluating need for further SPR oil releases after October -Granholm”
By Arathy Somasekhar
September 8, 2022
The Biden administration this year has delivered about 1 million barrels of oil per day from SPR stockpiles to lower fuel prices and pare energy inflation ahead of midterm elections in November.
But they also have cut U.S. emergency stocks to below 450 million barrels, lowest since 1984.
***************************
Rigzone
“Oil Rises as Weakening Dollar Offsets Demand Worries”
by Bloomberg | Devika Krishna Kumar and Ilena Peng
Monday, September 12, 2022
“Everyone’s worried about this slowdown in demand.”
“But boy, we better hope for a slowdown in demand because we’re running out of oil in the SPR and if China reopens, we’re not going to have enough oil to meet that demand,” said Phil Flynn, senior market analyst at Price Futures Group.
The US has released barrels from its strategic reserve this year in an attempt to offset supply tightness but those volumes are set to end shortly, and barrels in underground caverns are at the lowest levels in almost three decades.
***************************************
Reuters
“U.S. emergency oil reserves tumble to lowest since 1984”
By Arathy Somasekhar
September 12, 2022
HOUSTON, Sept 12 (Reuters) – U.S. emergency crude oil stocks fell 8.4 million barrels last week to 434.1 million barrels, their lowest since October 1984, according to U.S. Department of Energy (DOE) data released on Monday.
The release from the Strategic Petroleum Reserve (SPR) in the week ended Sept. 9 was the steepest draw since May.
******************************************
Rigzone
“Oil Falls on Demand Concerns as DOE Clarifies SPR Refill Plan”
by Bloomberg | Julia Fanzeres and Ilena Peng
Thursday, September 15, 2022
Oil fell with demand concerns at the fore as the US Department of Energy walked back expectations of its plan to restock petroleum reserves and China considered allowing more fuel exports.
The DOE said its plan to replenish the nation’s emergency oil supply doesn’t include a trigger price and isn’t likely to occur until after fiscal 2023.
Earlier this week prices rallied after Bloomberg News reported that administration officials have discussed refilling the Strategic Petroleum Reserve should crude dip below $80, suggesting a potential floor for prices.
“The White House sending mixed messages on the strategic reserve has pushed this market up and down,” said Phil Flynn, senior market analyst at Price Futures Group.
“They’re putting out some trial balloons to see how their buying is going to impact prices.”
******************************************
Reuters
“U.S. to sell up to 10 mln bbls of oil from SPR for Nov. delivery”
By Timothy Gardner and Arathy Somasekhar
September 19, 2022
WASHINGTON/HOUSTON Sept 19 (Reuters) – The U.S. Energy Department said on Monday it will sell up to 10 million barrels of oil from the Strategic Petroleum Reserve, for delivery in November, extending the timing of a plan to sell 180 million barrels from the stockpile to tame fuel prices.
And here is some more important background to consider as October is set to begin, and the cold times are out ahead, at least for us to the north of you.
And for context, let us go back to September 12, 2022 where we have this statement to consider., to wit:
HOUSTON, Sept 12 (Reuters) – U.S. emergency crude oil stocks fell 8.4 million barrels last week to 434.1 million barrels, their lowest since October 1984, according to U.S. Department of Energy (DOE) data released on Monday.
end quotes
So OUR emergency oil supply has been largely depleted by Joe Biden for strictly partisan political reasons which have absolutely nothing to do with keeping us safe, and everything to do with making us WEAK, as we see in this following, also from 12 September 2022, to wit:
“But boy, we better hope for a slowdown in demand because we’re running out of oil in the SPR and if China reopens, we’re not going to have enough oil to meet that demand,” said Phil Flynn, senior market analyst at Price Futures Group.
end quote
So instead of having oil in OUR SPR, we have water, which is slowly damaging the SPR by dissolving the salt the SPR is confined in.
And that takes us to this, to wit:
Rigzone
“Oil Rallies Amid Dwindling Stockpiles and Growing Energy Conflict”
by Bloomberg | Ilena Peng and Julia Fanzeres
Wednesday, September 28, 2022
Oil jumped the most since July as an escalating energy conflict with Russia and declining US inventories raised the prospect of supplies tightening in the near term.
US crude stockpiles fell last week for the first time in a month as some regional fuel stockpiles declined precariously.
Crude inventories fell 215,000 barrels last week, the US Energy Information Administration reported.
West Coast gasoline stockpiles fell to their lowest in 10 years and New England’s distillate stocks, which include diesel and heating oil, fell to an all-time low for this time of year.
end quotes
Winter is coming, although I seriously doubt Joe Biden or any of his crows are even aware of it, and winter means blizzards and snow plows needing to be out, and guess what snowplows run on, people – yes, you nailed it – DIESEL FUEL.
So here we are in the Northeast heading for winter with LOW SUPPLIES OF DIESEL FUEL which is about as STOOPID and STOOPID can possibly get.
And hey, what about heating oil, which is what people in the Northeast use to heat their homes.
It too is in short supply, and a gallon of fuel oil is around $5.00, where when Trump was in office, it was a little over two dollars per gallon.
Consider that it might take 600 gallons or more to heat a home during the heating season, which has started now, unless you like living like an eskimo inside your house, so people are now looking at as $3000 heating bill, where when Trump was in office, it was $1200 or so,
(I burn wood because I have it to burn, have the time it requires to burn wood to heat a house, and oil for me is a luxury item.)
And then we have this:
Rigzone
“Oil Down on Falling Equities and Slowdown Fears”
by Bloomberg | Ilena Peng and Julia Fanzeres
Thursday, September 29, 2022
Diesel strength is rippling through US markets as well.
Premiums for physical barrels of jet fuel traded in New York and Houston are soaring against futures.
US refiners have scaled back jet fuel production to prioritize diesel output as a deadline to ban Russian fuels in Europe approaches.
end quotes
Talk about absolutely piss-poor planning here, people!
Joe Biden has sold us into a precarious position energy-wise, and anybody who thinks otherwise is a fool, plain and simple.
Rigzone
“Oil Climbs More Than 5% as OPEC Considers Big Production Cuts”
by Bloomberg | Ilena Peng
Monday, October 03, 2022
Oil climbed more than 5% in its biggest rally since July as potential OPEC+ output cuts heighten fears of supply tightness on the horizon.
West Texas Intermediate rose to near $84 a barrel on news that the Organization of Petroleum Exporting Countries and its allies may scale back production by more than one million barrels a day, its largest reduction since the pandemic.
A large output cut may draw criticism from the US and other major consumers, where energy-driven inflation has forced central banks to aggressively jack up interest rates.
And not only is Joe Biden depleting our SPR, and running us dangerously low on fuel supplies as we head into the cold part of the year, he is also selling out the people of the United States going into this winter with respect to natural gas in order to support the people of Europe, instead, now that Joe has totally and thoroughly screwed their economies with his war of choice in Ukraine against Putin of Russia, who Joe hates and fears:
Reuters
“Exclusive: White House rules out ban on natural gas exports this winter”
By Jarrett Renshaw and Trevor Hunnicutt
October 4, 2022
WASHINGTON, Oct 4 (Reuters) – The White House has ruled out any ban or curbs on natural-gas exports this winter, in a bid to help alleviate energy shortages in Europe, according to two people directly involved in the discussions.
end quotes
As the president of the United States of America, Joe Biden’s first priority, of course, is making sure that the people of Europe are being cared for, not the people of the United States of America, which takes us back to that story of Joe Biden selling out the people of America, to wit:
In March, U.S. President Joe Biden committed to deliver 15 billion cubic metres (bcm) more of liquefied natural gas (LNG) to Europe following Russia’s invasion of Ukraine and has already surpassed that goal.
Further White House analysis has only cemented support for ongoing exports, the sources said, although rising energy costs and a colder-than-expected winter could test Biden’s commitment.
Biden and his aides are bracing for the prospect that inflation-fatigued Americans will pay high home-heating bills this winter.
Inventories of natural gas, the nation’s primary heating fuel, are at historically low levels after U.S. companies exported record amounts to Europe in recent months to counter a cut in supplies and higher prices for European power plants.
end quotes
Sounds like people might be burning their furniture this year to keep warm in the good old USA that Joe Biden is building back better by first destroying it.
Going back to Reuters, we have more on our immediate future going into the cold season, as follows:
White House officials, stung by spikes in inflation to four-decade highs above 8%, explored the market impact of limiting energy exports to ease consumer prices and lift domestic inventories, the sources said.
But that analysis only cemented a consensus that such a move would be too extreme and fracture key relationships with allies in Europe.
The issue has taken on new significance in recent weeks as the White House has threatened petroleum refiners they could stop them from exporting fuels like gasoline and diesel unless domestic inventories rise.
“President Biden made a commitment in March and we have been moving out on it.”
“We surpassed the LNG export goal President Biden set,” said a senior administration official, who pointed to 30 bcm in U.S. LNG exports to EU since early March, double the same period last year.
“And because of the steps we and our partners have been taking, gas storage in Europe is at a significantly higher level than last year.”
end quotes
That as inventories of natural gas, OUR nation’s primary heating fuel, like the depleted SPR, are at historically low levels after U.S. companies exported record amounts to Europe in recent months to counter a cut in supplies and higher prices for European power plants.
Getting back to Reuters, we have more as follows:
The average cost of U.S. home heating is expected to rise 17.2% from last winter to $1,202, putting millions of low-income families at risk of falling behind on their energy bills, according to a recent report by the National Energy Assistance Directors’ Association (NEAD).
The price of natural gas, which heats about 50% of U.S. households, is expected to increase about 34% compared with last year, and up 66% from the winter of 2020-2021, the report said.
Some power companies who rely on natural gas in the U.S. northeast are warning consumers that electricity bills could soar by 60% this winter.
However, ruling out a natural gas export ban still makes sense, economists say, given the EU’s increasing reliance on U.S. exports.
“(U.S.) natural gas prices would plummet, but if I were the EU, I would almost consider (a ban) an act of war.”
“It would really stoke anti-American attitudes and make European countries question the strength of their relationship with the U.S.,” said Ed Hirs, an energy economist at the University of Houston.
The U.S. banned crude oil exports for four decades in the name of consumer protection until President Barack Obama and Congress lifted the restriction in 2015.
Biden has sought to leverage the country’s vast supply of natural gas to forge stronger ties with European allies in the wake of Russia’s invasion of Ukraine and the subsequent upheaval in global energy markets.
Gas stockpiles in northwest Europe – Belgium, France, Germany and the Netherlands – are currently about 6% above their five-year (2017-2021) average for this time of year, according to Refinitiv.
Storage is around 91% of capacity.
That is much healthier than U.S. gas inventories, which are still about 9% below their five-year norm, despite record production due to export demand.
If the U.S. fall and winter are colder than expected, low inventories will drive up prices and could reignite calls from U.S. lawmakers, including influential Senator Elizabeth Warren, to curtail natural gas exports.
U.S. natural gas prices are far lower than global prices because the United States is the world’s top producer.
Still, natural gas heating bills will average $952 this winter, up from an average of $564 from 2012 to 2021, according to NEAD.
“Americans for years enjoyed low price natural gas,” said Mark Wolfe, head of NEAD.
“I am afraid that era is now over.”
And in the meantime, reality for us here in America continues to go on as reality does, despite the dreams of Joe Biden that it will be otherwise, to wit:
Rigzone
“Oil Rally Continues as OPEC Plans Largest Production Cut Since 2020”
by Bloomberg | Ilena Peng
October 05, 2022
Oil rallied for a third day after OPEC+ agreed to the largest supply cut since 2020 and Russia warned it may reduce its own output even further.
West Texas Intermediate futures settled close to $88 a barrel after members of the producer group agreed to slash as much as 2 million barrels a day from current output limits.
Meanwhile, Russia may impose a temporary production cut in response to efforts by the US and others to cap the price of Russian oil, Deputy Prime Minister Alexander Novak said.
He reiterated that the nation would not sell oil to countries that capped prices.
OPEC’s move drew criticism from the US which has been battling energy-driven inflation.
White House Press Secretary Karine Jean-Pierre said the cut aligns the group with Russia, while President Joe Biden called it “unnecessary.”
The White House also indicated it could release more oil from the Strategic Petroleum Reserve to alleviate rising prices.
end quotes
Yeah, right, Joe, pump the SPR right on down to nothing and fill it with water to save your failing presidency!
Reuters
“U.S. sells oil from emergency reserve to Marathon, Equinor, others”
October 7, 2022
WASHINGTON, Oct 7 (Reuters) – The United States has sold a 10.15 million barrel batch of oil from the Strategic Petroleum Reserve to eight companies, the Department of Energy said on Friday.
First offered in September, the sale was part of President Joe Biden’s previously announced plan to sell 180 million barrels of oil from the reserve to fight high petroleum prices after Russia’s invasion of Ukraine.
Companies receiving SPR oil were Equinor Marketing and Trading, Marathon Petroleum Supply and Trading LLC, Valero Marketing and Supply Company, Motiva Enterprises, Macquarie Commodities and Trading US LLC, Atlantic Trading & Marketing Inc, Phillips 66 Company, and Shell Trading Company.
The administration has now sold about 165 million barrels of the sale, the largest ever from the SPR, since May.
The Biden administration has said more oil sales from the SPR could be undertaken in the wake of a decision this week by OPEC+, a group that includes Saudi Arabia and Russia, to cut oil output by 2 million barrels per day.
The drawdowns have pushed oil supply in the SPR down to the lowest level since July 1984.
*************************************************
The Washington Post
“OPEC, allies move to slash oil production, eliciting blistering White House response”
By Jeff Stein, Rachel Lerman and John Hudson
Updated October 5, 2022 at 11:30 a.m. EDT
The production cuts could lead to considerable political fallout in the United States, where midterm elections will be held in just over a month.
Falling gas prices this summer played a big role in lifting the political fortunes of Democrats, who face a tough election season.
They also helped elevate Biden’s approval rating and gave the party a glimmer of hope for blunting a widely anticipated red wave in November.
The OPEC coalition’s move could also add to inflationary pressures in the United States and Europe, as well as undercut the effort to bolster Ukraine as it defends itself against the Russian invasion.
Oil prices jumped this week in anticipation of Wednesday’s news.
They are expected to increase further now, probably to over $100 per barrel.
Before the OPEC Plus meeting, gas prices were already up sharply in some areas of the United States where there are several hotly contested congressional races, as well as close races for governor.
Those increases were propelled by maintenance at refineries on the West Coast and a large fire at a refinery in the Midwest.
While the White House has little control over the price of gas, which is guided by global markets, Biden has more actively engaged on the matter than many of his predecessors.
That includes his order to release 1 million barrels of oil per day from the Strategic Petroleum Reserve, an action that helped lower prices but now makes the United States even more vulnerable to cost increases as it faces the challenge of replenishing.
The administration has already extended the release of that reserve oil into November.
But the potential production cuts by OPEC Plus suggest the United States may not be able to restock at the lower prices administration officials had hoped.
Joe Biden promised that we common folks in America down at the bottom of the heap would have to suffer and pay a price for his war of choice in Ukraine against his hated and feared arch-enemy Putin of Russia, and Joe is being true to his word as a Biden:
Reuters
“U.S. home heating bills expected to surge this winter – EIA”
Reuters
October 12, 2022
Oct 12 (Reuters) – U.S. consumers can expect to pay up to 28% more to heat their homes this winter than last year due to surging fuel costs and slightly colder weather, the U.S. Energy Information Administration (EIA) projected in its winter fuels outlook on Wednesday.
Nearly half of U.S. households rely on natural gas for heat, with the average winter heating cost expected to rise to $931, up by 28% from last year, EIA said.
U.S. gas prices at the Henry Hub benchmark were up about 75% this year as soaring global prices feed demand for U.S. exports due to supply disruptions and sanctions linked to Russia’s Feb. 24 invasion of Ukraine.
Electricity is the primary heating source for about 40% of homes.
It is more expensive than gas at an estimated $1,359 per household this winter – but that is just a 10% increase from last winter.
Less than 12 million homes rely on heating oil or propane – about 9% of the roughly 130 million U.S. households – but those fuels will remain the most expensive sources of heat this winter with cost increases of 27% to $2,354 for heating oil and 5% to $1,668 for propane.
Homes that rely on heating oil are concentrated in the Northeast, while the biggest propane users are in the Midwest.
EIA said residential costs will rise to $15.95 per thousand cubic feet (mcf) for gas, $2.32-$3.45 per gallon for propane, 14.8 cents per kilowatt-hour (kwh) of electricity and $4.54 per gallon for heating oil.
That compares with last winter’s residential costs of $13.02/mcf for gas, $2.30-3.33 per gallon for propane, 14.0 cents per kWh of electricity and $3.90 per gallon for heating oil.
What a mess this one senile old fool has made of the world – the pale rider (pasty-white actually) rides a green horse and Hell follows after, which we are going to find out about this winter:
Rigzone
“Diesel Hits Chaos Mode”
by Bloomberg | P.Prem, J.Wittels, A.Longley
Monday, October 17, 2022
The world’s diesel market is once again flashing signs of chaos, undermining the global economy with a fresh bout of inflationary pressure.
The US has the lowest seasonal inventories in data that began in 1982 going into winter.
Officials in the Biden administration have pressed fuel producers to curtail overseas exports and chastised them for low diesel stockpiles.
“It’s extremely tight, end user stocks are extraordinarily low,” said Gary Ross, a veteran oil consultant turned hedge fund manager at Black Gold Investors LLC.
“I don’t know where resupply comes from.”
“Diesel is the industrial product of the world, so it’s not going to help an already weakened economic environment.”
In New York, the physical market is so tight that premiums surged there too.
Diesel is the engine of the global economy.
It is used for transportation, heating and industrial processes, meaning that a rise in prices can lift everything from the price of heating a house to the cost of finished goods.
“At a macroeconomic level, higher oil process increase inflation and reduce economic growth,” said Mark Williams, research director for short term oils at WoodMackenzie Ltd.
“The rising costs of diesel fuel therefore impacts everybody, as diesel prices affect direct manufacturing, transportation and heating costs.”
“As diesel prices rise, so do the costs of goods which in general are passed onto consumers.”
The market has been in various states of chaos ever since the invasion of Ukraine triggered uncertainty about what would happen to diesel flows.
“Diesel is very tight already,” said Helge Andre Martinsen, senior oil analyst at DNB Bank ASA.
“We could easily end up with a squeeze into the winter.”
Shallow-thinking, short-sighted, knee-jerking Joe Biden is selling out OUR Strategic Petroleum Reserves for totally political reasons to try and keep the Democrats in power in Washington, which would be an impeachable offense if it were Trump that was doing it to boost the Republicans, to wit:
Rigzone
“Oil Falls Amid Emergency Crude Release Plans”
by Bloomberg | Julia Fanzeres
Tuesday, October 18, 2022
Oil fell as the prospect of additional supplies from strategic reserves assuaged market concerns of a tight market heading into Northern Hemisphere winter.
The US is moving toward releasing more crude from its strategic reserve to tamp down fuel prices.
“Crude prices declined as energy traders expect the Biden administration to remain aggressive with further releases from its strategic oil reserves,” said Ed Moya, senior market analyst at brokerage and data provider Oanda Corp.
“With midterm elections less than a month away, President Biden wants energy prices trending in the right direction.”
The US is moving toward a release of another 10 million to 15 million barrels of oil from the nation’s emergency stockpile, according to people familiar with the matter.
Separately, the Biden administration is still weighing limits on exports of fuel, two of the people said.
Investing.com
“Oil Inventories Unexpectedly Fall by 1.3M Barrels Last Week: API”
By Yasin Ebrahim
Oct 18, 2022
The API data also showed that gasoline inventories fell 2.2 million barrels last week, and distillate stocks fell by 1.1 million barrels.
*****************************************
Rigzone
“Oil Rises Despite Energy Remarks from Biden”
by Bloomberg | Julia Fanzeres
Wednesday, October 19, 2022
Oil rose as traders shrugged off President Joe Biden’s remarks about taming energy prices.
In a speech on Wednesday, Biden confirmed the US is releasing 15 million barrels from the nation’s strategic reserve but didn’t announce any other steps that might pull back prices, such as plans to curb fuel exports.
US crude stockpiles dropped 1.73 million barrels last week, the Energy Information Administration said Wednesday.
Four-week seasonal demand for distillate fuels soared to the highest since 2007 while inventories remain the lowest point on record for this time of year.
Rigzone
“USA Oil Groups React to Biden Measures”
by Andreas Exarheas | Rigzone Staff
Thursday, October 20, 2022
Several U.S. oil and gas associations have reacted after the Biden administration revealed that it was taking additional energy measures.
American Petroleum Institute (API) President and CEO Mike Sommers said, “at a time when American energy can be a stabilizing force at home and abroad, we urge caution in continuing to rely on short-term efforts that are no substitute for sound long-term policies that enable American energy leadership”.
“The administration should instead focus on addressing the fundamental economic and security challenges we face by spurring more investment in American energy, infrastructure and markets that enable U.S. consumers to benefit from America’s reliable energy resources,” Sommers added.
American Exploration and Production Council (AXPC) CEO Anne Bradbury said, “the American people need real solutions to address rising energy prices as we face continued inflation”.
“Pulling more crude from the Strategic Petroleum Reserve will only artificially lower prices for the short term and should not be a substitute for long-term policies to increase domestic crude supplies.”
“The SPR was established to reduce the impacts of short-term market disruptions, not serve as a long-term solution or tool to manipulate energy markets,” Bradbury added.
“What the American people need is a collaborative approach from this administration that is focused on supporting domestic production of oil and natural gas,” Bradbury continued.
Energy Workforce & Technology Council (EWTC) CEO Leslie Beyer said, “the president’s actions again miss the point and leave out the obvious plan of action that would increase the energy security of the United States and our allies, increasing domestic production of oil and gas”.
Rigzone has asked the U.S. Department of Energy (DOE) for comment on the API, AXPC and EWTC statements.
At the time of writing, the DOE has not yet responded to Rigzone’s request.
*******************
Rigzone
“Oil Shows Minimal Change Amid Equity Market Weakness”
by Bloomberg | Julia Fanzeres and Ilena Peng
Thursday, October 20, 2022
The US has released oil from emergency reserves to cool prices, while also saying it will refill that supply if prices are at or below $67 to $72.
*******************
Rigzone
“Gasoline Prices Stubbornly High in Election Swing States”
by Bloomberg | Ilena Peng
Thursday, October 20, 2022
US pump prices remain stubbornly high just three weeks away from the midterm elections, and the states where the pain is most acute include those poised to determine which party controls Congress.
Nevada and Arizona — swing states with competitive Senate races — are among those grappling with the highest gasoline prices in the country.
More than 40% of competitive races rated by Cook Political Report are in states seeing the highest increases in pump prices compared with the 2020 election.
“It doesn’t get easier to sell the Democratic brand at a high gasoline price,” said Kevin Book, managing director of consulting firm ClearView Energy Partners.
“To the extent that Democrats are facing Republicans who are trying to make this a referendum on Biden, the increase from 2020 is going to be unflattering.”
Fox Business News
“Expert warns developing home heating oil shortage is around the corner as gas prices fall”
Taylor Penley
24 October 2022
“Heating oil and also diesel fuel in the Northeast has been the extreme challenge this year, and, of course, we’re coming into home heating oil season and a lot of folks are filling their tanks with heating oil,” De Haan said.
“A lot can be said about this developing crisis, and really it’s a culprit of declining refining output that’s no longer able to really replenish those inventories specifically in the Northeast where you’ve lost about a half a million barrels of refining capacity since COVID and since 2019.”
De Haan warned Varney that the developing home heating oil shortage is a problem that will not go away anytime soon and said viewers can expect to hear “a lot more” about refineries that are struggling to keep up with rising demand this winter.
His message grew even more dismal for homeowners looking to stay warm this winter, saying shortage problems could exacerbate already climbing costs.
Fox Business News
“Energy experts say Biden plan to refill oil reserve could take years, won’t fix policy problems”
By Tyler Olson FOX Business
Published October 19, 2022
Energy industry representatives and experts say President Biden’s plan to refill the Strategic Petroleum Reserve (SPR) could take years to complete and doesn’t provide the kind of security that more energy-friendly policies would.
The White House Tuesday night rolled out details of its plan to refill the depleted reserve, along with an announcement that it’s releasing 15 million more barrels to help moderate gas prices.
Biden also discussed it Wednesday, announcing that the U.S. will start refilling the reserve when prices drop to between $67 and $72.
He called that “a good price for companies, and… a good price for taxpayers.”
But Mark Mills, an energy expert at the conservative Manhattan Institute, told Fox News Digital that Biden’s plan may leave the U.S. with a half-full reserve for some time.
“The WH plan to refill the Strategic Petroleum Reserve fails to provide the resources needed to strengthen our security and could take years to replenish what they have squandered,” Leslie Beyer, the CEO of the Energy Workforce and Technology Council added.
“To strengthen our energy and national security, the Biden administration must support long-term increased investment and infrastructure in domestic oil and gas production and processing.”
The SPR is down more than a third since Biden entered office, from 638 million barrels to 405 million.
That’s the lowest level since the 1980s.
Biden’s continued drawdown from the SPR comes shortly after an OPEC+ decision to cut daily production by 2 million barrels per day.
The president’s Wednesday announcement that he’s releasing 15 million barrels comes after he said he’d release 180 million from the SPR earlier this year.
Biden also said he’s directing his administration to be ready to release even more oil this winter if needed.
It is indeed amazing how the short-sighted, idiotic energy policies of one rug-chewing madman in the Washington white house have turned the world on its ear while leaving us in an energy jeopardy I haven’t experienced since the 1970s, and that was as a result of foreign policy while this time it is totally homegrown, to wit:
Rigzone
“The USA Diesel Crisis Is Here and Spreading”
by Bloomberg | Chunzi Xu
Wednesday, October 26, 2022
The diesel shortage that had the White House on edge last week is spreading from the Northeast to the Southeast, prompting at least one supplier to initiate emergency protocols.
“Because conditions are rapidly devolving” fuel supplier Mansfield Energy is now requiring a 72-hour notice for deliveries to secure fuel and freight, according to a note to customers.
In areas that are tightest, fuel prices are running 30-80 cents higher than the market average, Mansfield said, adding that Tennessee is “seeing particularly acute challenges.”
“At times, carriers are having to visit multiple terminals to find supply, which delays deliveries and strains local trucking capacity,” the note said.
Diesel inventories nationwide are at lowest seasonal level ever heading into winter, and some areas in the Northeast have already started rationing fuel.
The shortage is almost certain to drive up prices for the heating and trucking fuel, further straining household budgets.
Fox Business News
“Fuel company issues diesel shortage warning, says conditions ‘rapidly devolving'”
Timothy Nerozzi
29 October 2022
A major fuel supply and logistics company is raising a red flag on upcoming diesel fuel shortages.
Mansfield Energy issued the alert Friday stating there was a developing diesel fuel shortage in the southeastern region of the United States.
States expected to experience serious affects of the shortage include Maryland, Virginia, Alabama, Georgia, Tennessee, North Carolina and South Carolina.
The Energy Information Administration (EIA) reported this week that, as of Oct. 14, the U.S. had only 25 days of reserve diesel supply, a low not seen since 2008.
The Northeast Home Heating Oil Reserve (NEHHOR) holds roughly 1 million barrels of home heating oil, and House Democrats from New England are asking President Biden to release some of those reserves to help reduce home heating prices in the region leading into the winter months.
But experts say the developing home heating oil shortage is not going away anytime soon.
Rigzone
“Oil Posts Monthly Gain”
by Bloomberg | Julia Fanzeres
Monday, October 31, 2022
OPEC+ said it would curb production by 2 million barrels a day from November, complicating an already uncertain period for oil supply with the European Union set to implement sanctions on Russia in December.
Eni SpA Chief Executive Officer Claudio Descalzi warned that Europe will have to rely on the US to make up for the loss of Russian oil supplies from next year.
At the same time, President Joe Biden’s energy envoy said current US investment in new energy supply is not adequate.
What a surprise!
Who’d a thought it!
Not Joe Biden, anyway:
The Hill
“Seriously low diesel supply threatens to worsen inflation”
Rachel Frazin
30 October 2022
A seriously low U.S. and global diesel supply is likely to drive up fuel costs and worsen inflation, raising concerns as the cold weather months approach.
Analysts say that a confluence of factors, long bubbling beneath the surface, are now coming to a head as colder temperatures bring more seasonal demand for diesel, a fuel that powers trucks and buses and is also used in heating.
“This is the start of heating oil season.”
“This is when demand really starts picking up as we enter the winter months,” said Debnil Chowdhury, the head of North and Latin American refining and marketing research at S&P Global Commodity Insights.
The country has about 25 days worth of diesel left, a level that’s considered very low.
“All of those things combined led the world to really have low inventory,” he added, also mentioning a recent increase in demand for jet fuel, which may have to compete with diesel at the refinery.
He added that the response to Russia’s invasion of Ukraine has also played a role in rerouting trade of the fuel as many European countries avoid Russian products, creating market inefficiencies.
Analysts say that this crunch is expected to worsen persistently high inflation not seen in the last four decades.
High diesel prices may drive up shipping and heating costs.
“The rising costs of diesel fuel therefore impacts everybody, as diesel prices affect direct manufacturing, transportation and heating costs.”
“As diesel prices rise, so do the costs of goods which in general are passed onto consumers,” said Suzanne Danforth, an analyst with Wood Mackenzie, in a written statement to The Hill.
Danforth added that this could also help push the country into recession, as rising prices could curb demand for products.
“Higher diesel prices have the potential to create even stronger inflationary pressures especially if the current price spike is sustained, adding significant downside risk to demand and increasing the chances of a global recession,” she said.
But the impacts of heating costs may not impact Americans evenly.
Heating oil is most commonly used in the Northeast, and that region may be hit hardest by large utility bills.
Overall, Chowdhury said, there’s limited options to fix the problem.
“This is a difficult crisis to get out of,” he said.
My gas is up $.30 cents a gallon since about a week ago, at $4.43 per gallon of 89 octane.
Meanwhile, out there in the reality we live in that Joe Biden is unaware because he spends all his time in Cloud Cuckoo Land, where life is beautiful all the time, we have as follows:
Rigzone
“Oil Rallies on Tight Fuel Supplies”
by Bloomberg | Julia Fanzeres
Wednesday, November 02, 2022
Oil rose as fuel stockpiles continue to tighten, clinging to gains even as hawkish comments from Federal Reserve Chairman Jerome Powell knocked the wind out of Wall Street.
West Texas Intermediate settled at a three-week high of $90 a barrel on Wednesday.
Tight supplies rallied crude prices as gasoline inventories tumbled to the lowest since November 2014 and distillate inventories on the East Coast refused to budge from record seasonal lows, according to Energy Information Administration data.
Reuters
“White House announces $13.5 bln funding to help households with energy bills”
Reuters
November 2, 2022
Nov 2 (Reuters) – President Joe Biden’s administration will make $13.5 billion available to help low-income U.S. households lower their heating costs this winter, the White House said on Wednesday.
“The rise in home energy costs this winter will put millions of lower income families at risk of falling behind on their energy bills and having no choice but to make difficult decisions between paying for food, medicine and rent,” NEADA Executive Director Mark Wolfe has said.
***************************
Reuters
“Frigid winter? New Englanders will pay through frozen noses for oil and gas”
By Scott Disavino and Laura Sanicola
November 2, 2022
Nov 2 (Reuters) – This winter the U.S. Northeast faces its highest energy costs in more than 25 years due to tight heating oil supplies and fierce global competition for liquefied natural gas (LNG) cargoes.
Throughout 2022, consumers have been socked with higher costs for everyday items, including groceries and gasoline.
The winter could bring more pain, with heating costs nationwide set to soar as much as 28% from last year, according to the U.S. Energy Information Administration’s (EIA) winter fuels outlook.
Residential consumers in New England are expected to pay an average of 26.3 cents per kilowatt hour for electricity and $19.90 per thousand cubic feet for gas in January 2023, up more than 15% from last year and the most on record for both during January, according to EIA data going back to 1997.
***************************
Rigzone
“Oil Falls as Possible Rate Hikes Stir Recession Fears”
by Bloomberg | Julia Fanzeres
Thursday, November 03, 2022
US gasoline stockpiles fell to the lowest since 2014 and distillate supplies on the East Coast remain stuck at record lows for this time of year.
Fox Business News
“Energy experts say Biden plan to refill oil reserve could take years, won’t fix policy problems”
By Tyler Olson FOX Business
Published October 19, 2022
Energy industry representatives and experts say President Biden’s plan to refill the Strategic Petroleum Reserve (SPR) could take years to complete and doesn’t provide the kind of security that more energy-friendly policies would.
The White House Tuesday night rolled out details of its plan to refill the depleted reserve, along with an announcement that it’s releasing 15 million more barrels to help moderate gas prices.
Biden also discussed it Wednesday, announcing that the U.S. will start refilling the reserve when prices drop to between $67 and $72.
He called that “a good price for companies, and… a good price for taxpayers.”
*********************************
Rigzone
“Oil Prices Hit Two Month High as China Eases Restrictions”
by Bloomberg | Julia Fanzeres
Friday, November 04, 2022
Oil closed at the highest level since August as markets rallied over China easing its Covid restrictions.
WTI for December delivery advanced $4.44 to settle at $92.61 a barrel in New York.
Gee, and people wonder why inflation in this country is so high and is going higher thanks to the knee-jerking, short-sighted, shallow thinking policies of Joe Biden who has gotten us into a proxy war with Russia that is turning the world economy upside down, while putting us in this country who don’t live in the Washington white house in more and more jeopardy as cold weather and snow approach:
Reuters
“U.S. natgas futures jump 7% in volatile week on cold forecasts”
Reuters
November 4, 2022
Nov 4 (Reuters) – U.S. natural gas futures jumped about 7% to a three-week high on Friday at the end of an extremely volatile week of trade on forecasts for much colder weather and higher heating demand in mid-November than previously expected.
Overall, gas futures were up about 72% so far this year as much higher global gas prices feed demand for U.S. exports due to supply disruptions and sanctions linked to Russia’s invasion of Ukraine.
Keeping in mind that Janet “TOODLES” Yellen, Joe Biden’s treasury secretary who is doing her level best to destroy Russia’s economy, is one of the idiots who predicted that inflation would be “transitory,” only to have to go back and eat her words when inflation proved to not be transitory at all, we have another moronic statement from her in this Rigzone article titled “Oil Prices Down on Demand Outlook Concerns” by Bloomberg & Ilena Peng on November 14, 2022, to wit:
US Treasury Secretary Janet Yellen said Russia will likely have to shut in some of its oil production if it doesn’t abide by a price cap.
The European Union is “ready to go” with an effort to impose a price cap on Russian oil, according to the president of the group’s executive arm, Ursula von der Leyen, though a price level has not yet been decided.
end quotes
That price cap, which guarantees more BIDEN-caused CHAOS in the world and our economy is yet to come, is supposed to go into effect on December 5th.
Rigzone
“Oil Falls on Demand Concerns as Geopolitical Tensions Ease”
by Bloomberg | Julia Fanzeres
Wednesday, November 16, 2022
The International Energy Agency this week said oil stockpiles in developed nations are at the lowest since 2004.
The Daily Caller
“Biden’s Proposed Plan To Address Diesel Shortages Could Hike Prices Even Further”
Jack McEvoy
15 November 2022
President Joe Biden is proposing a plan that would require fuel suppliers to maintain a minimum amount of diesel in their inventories this winter to stave off severe shortages and prevent extreme price hikes.
However, it could create a demand surge and drive up already high prices, according to Bloomberg.
The plan would force diesel vendors to take supplies off the market which could cause short-term diesel demand to soar and drive up prices in the Northeast, where fuel shortages are most severe, according to Bloomberg.
Russia’s invasion of Ukraine has exacerbated the East Coast’s fuel shortages as the region has become dependent on Russian imports due to the region’s constrained pipeline capacity.
The national average price of diesel is $5.31 per gallon and is $1.58 higher than it was in November 2021, according to the Energy Information Administration (EIA).
Americans who use heating oil (a form of diesel) will spend an average of $2,354 to heat their homes this winter which represents a 27% increase from winter 2021 and the highest price point in more than 25 years, according to the EIA.
The White House did not immediately respond to the Daily Caller News Foundation’s request for comment.
With Joe Biden, EVERYTHING is an EMERGENCY requiring more EMERGENCY borrowing and more spending to run up our deficit because of all the EMERGENCIES Joe’s short-sighted policies and the ham-handed execution of them have created:
Rigzone
“Biden Requests $500MM for Strategic Petroleum Reserve”
by Andreas Exarheas | Rigzone Staff
Tuesday, November 22, 2022
In a letter outlining President Biden’s request for 2023 emergency supplemental funding “for critical assistance to Ukraine and critical response activities to address Covid-19”, a sum of $500 million has been earmarked for the U.S. Strategic Petroleum Reserve (SPR).
“This request would provide the Department of Energy, Energy Security and Infrastructure Modernization Fund account $500 million for modernization activities of the four Strategic Petroleum Reserve sites,” the letter, which was sent from the Office of Management and Budget (OMB) to the Speaker of the United States House of Representatives Nancy Pelosi, stated.
“The proposal would allow the SPR to both maintain operational readiness levels and also alleviate anticipated shortfalls due to supply chain issues, the Covid-19 pandemic, and related schedule delays,” the letter added.
In the letter, which was sent last week, OMB Director Shalanda Young said the Biden administration looked forward to continued engagement with members of both parties to reach a comprehensive, bipartisan agreement to fund the government for the rest of the fiscal year and invest in critical national priorities before the December 16 funding deadline.
“As part of that process, the Congress has an opportunity and obligation to address three additional and critical funding needs that should earn bipartisan support: protecting the American people from Covid-19 and saving lives globally; supporting the people of Ukraine; and helping communities across the Nation recover from devastating natural disasters,” Young stated in the letter.
The SPR is the world’s largest supply of emergency crude oil, according to the U.S. Department of Energy’s (DOE) website, which notes that the SPR was established primarily to reduce the impact of disruptions in supplies of petroleum products and to carry out obligations of the U.S. under the international energy program.
Of course Joe Biden is a WAR PROFITEER and we are suffering BIDENRAPE as a result in this country, as well, so the Europeans shouldn’t be whining and crying and puling about Joe also practicing BIDENRAPE on them, too, since they got into bed with him with respect to his WAR OF CHOICE on Putin and Russia of their own volition, so what on earth did they think would happen to them as a result:
Politico
“Europe accuses US of profiting from war – EU officials attack Joe Biden over sky-high gas prices, weapons sales and trade as Vladimir Putin’s war threatens to destroy Western unity.”
By Barbara Moens, Jakob Hanke Vela and Jacopo Barigazzi
November 24, 2022
Nine months after invading Ukraine, Vladimir Putin is beginning to fracture the West.
Top European officials are furious with Joe Biden’s administration and now accuse the Americans of making a fortune from the war, while EU countries suffer.
“The fact is, if you look at it soberly, the country that is most profiting from this war is the U.S. because they are selling more gas and at higher prices, and because they are selling more weapons,” one senior official told POLITICO.
One reason why the prices for fuel in Europe are so expensive – more shallow thinking and lack of foresight from this pitiful Biden crowd who seem to think that they can supply Europe’s fuel needs without any problems when it is doubtful any of those fools like Jake Sullivan, who wants to “surge” fuels to Europe, could even change a lightbulb:
Rigzone
“Oil Freight Boom Makes $1MM Waiting Bills More Common”
by Bloomberg | Alex Longley, Sherry Su
Friday, November 25, 2022
In the oil-tanker market, day rates for delayed vessels — think taxis waiting with the meter on — have now reached around the $100,000 mark, according to traders and shipbrokers.
Those waiting fees are called demurrage, and it’s not unheard of in some locations for the delays to have reached seven to ten days, eroding the profit on physical oil trades.
Such hold ups aren’t out of the ordinary when factors like bad weather in the North Sea make loadings too risky or Covid controls slow logistics at Chinese ports.
Recently, two vessels that were due to load Forties oil at a terminal on the coast of Scotland were delayed by almost a week, according to people with knowledge of the matter.
Another, filled with crude from Kazakhstan, has been waiting near the Netherlands since Nov. 10.
The global oil tanker fleet has been increasingly stretched by Europe’s looming embargo on Russian oil, forcing cargoes to sail greater distances.
That has also made it hard to find replacement ships at short notice, as demand is effectively lifted by the longer voyages.
Rigzone
“Oil Rises as US Stockpiles Tumble”
by Bloomberg | Julia Fanzeres and Devika Krishna Kumar
Wednesday, November 30, 2022
Supporting the rally, US crude inventories fell by 12.6 million barrels last week, even more than expected, representing the biggest decline since June 2019, according to Energy Information Administration data.
The draw coincided with US exports of crude and refined products rising to a record.
Fox Business News
“Oil execs rip Biden admin’s ‘completely inaccurate,’ ‘flat-out lie’ about US energy production”
Story by Kristen Altus
29 November 2022
After the White House claimed that U.S. oil producers have “plenty of opportunities” to drill domestically, some executives are slamming the administration’s “completely inaccurate,” “flat-out lie.”
“We’ve basically tracked about 125 specific actions that this administration and the Democratic Congress have done to slow down or stop oil production in America,” American Energy Alliance President Tom Pyle said on “Varney & Co.” Tuesday.
“He has an ‘America last’ energy policy.”
When asked by Fox News correspondent Peter Doocy why President Biden “would rather let U.S. companies drill for oil in Venezuela than here in the U.S.” Monday, NSC Strategic Communication Coordinator John Kirby defended easing oil sanctions against Venezuela, saying that there are plenty of untapped opportunities for companies to drill in the United States.
Kirby told Doocy that his framing of the question was “not an accurate take on the president’s view,” to which Doocy retorted that the president himself, earlier this month, said, “there is no more drilling.”
“There are plenty of opportunities for oil and gas companies to drill here in the United States,” Kirby said.
******************************
Rigzone
“Oil Continues Four Day Rally”
by Bloomberg | Julia Fanzeres
Thursday, December 01, 2022
While traders express cautious optimism on China’s improving outlook, oil supply could tighten with SPR releases drying up.
The Biden administration is seeking to stop strategic oil sales so it can refill the emergency reserve.
Rigzone
“Oil Falls Amid Market Uncertainties”
by Bloomberg | Julia Fanzeres
Monday, December 05, 2022
Oil fell the most in more than two weeks as broader equity markets collapsed and risk-averse investors pared crude positions ahead of the end of the year.
The noise surrounding headlines is keeping traders from engaging in the market, said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management.
“Many have decided to tune out altogether.”
“Volumes are light and positioning is decimated as it seems prudent to wait until 2023.”
Oil has swung inside of a $10 range in recent weeks as markets weigh restrictions on Russian supply and China’s gradual reopening against the risk of an economic slowdown in the US and other parts of the world struggling to contain inflation.
Futures holdings continue to plunge as the year draws to a close — open interest in the main oil contracts is the lowest since 2015 — indicating that traders have pared back positions amid a number of risks, including the future of Russian supply.
For now traders are waiting to judge the long-term impact of the sanctions, and if shipping and insurance restrictions will obstruct flows.
Rigzone
“Oil Tumbles Erasing Gains of Entire Year”
by Bloomberg | Julia Fanzeres
Tuesday, December 06, 2022
Oil dropped to the lowest since last December as investors pared back crude positions amid a broader market sell-off.
The slump comes against a backdrop of ever-dwindling liquidity in the oil market: Brent open interest is at the lowest since 2015, as traders strip their positions in the final month of the year.
Traders are “fleeing the market” because of the “absurd” price actions oil has recently experienced, Ed Morse, global head of commodity research at Citigroup Inc., said in a Bloomberg Television interview.
Risk appetite remains low as investors digest economic data pointing to a slowdown in the US, and weigh the long-term impact of the latest round of restrictions placed on Russia by the European Union and Group of Seven.
These include limits on insurance and a $60-a-barrel cap on Russian oil.
Rigzone
“Oil Continues to Fall on Declining Liquidity”
by Bloomberg | Julia Fanzeres and Devika Krishna Kumar
Wednesday, December 07, 2022
It doesn’t take much to get oil prices moving lower these days, thanks to shrinking liquidity that’s sapped the life out of the market.
“There is literally no risk appetite to buy the dip in crude right now,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management.
“This is just snowballing into outsize moves.”
With many traders poised to close out big positions as 2022 wraps up, Babin said that the big question now is: Can anything “step in front of crude into last trading days of the year” to stem the losses?
Rigzone
“Oil Swings to Loss After Pipeline Outage Boosts Volatility”
by Bloomberg | Devika Krishna Kumar, Alex Longley
Thursday, December 08, 2022
Oil has weakened this month, erasing all of this year’s once-substantial gains, as central banks tighten monetary policy and the macroeconomic outlook sours.
Though sanctions on Russian crude have had little impact so far on the market, there’s a growing backlog of oil tankers near the Turkish Straits after an insurance wrangle prevented some vessels from passing through the country’s waters.
The standoff escalated Thursday as Turkey said it would remove ships without insurance letters from its waters.
Meanwhile, Amos Hochstein, the US State Department’s senior energy security adviser, said Wednesday that President Joe Biden’s administration is still weighing the impact of China’s reopening — and the price cap on Russian supplies — before moving to start replenishing the depleted Strategic Petroleum Reserve.
Why the price of oil is in decline:
Rigzone
“Oil Posts Largest Weekly Loss Since April”
by Bloomberg | Devika Krishna Kumar
Friday, December 09, 2022
Oil posted the biggest weekly loss since April as low liquidity fueled big price swings and as restarts for key pipelines alleviated supply concerns.
Thin trading has exacerbated price fluctuations, with volatility rising again Friday on stronger-than-expected US inflation data.
Crude is now on track for its first back-to-back quarterly decline since mid-2019 on a souring economic outlook as central banks tighten monetary policy, though Treasury Secretary Janet Yellen still sees the US avoiding a recession.
Traders are also assessing the fallout from a price cap on Russian oil, which has led to a jam of tankers in Turkish waters due to a standoff over insurance.
Funk China-Joe, Kamal-Toe and each and every one of you that voted for them.
SNABU (situation normal, all Biden’ed up)!
Reuters
“Turkey oil tanker logjam snarls Russia oil sanctions”
By Daren Butler and Can Sezer
December 9, 2022
ISTANBUL, Dec 9 (Reuters) – Turkey emerged as a critical stumbling block to a complex international plan to deprive Russia of wartime oil revenues as the number of tankers waiting to exit the Black Sea through Turkish straits continued to rise on Friday.
Ankara has declined to scrap a new insurance inspection rule it implemented at the beginning of the month despite days of pressure from Western officials.
A total of 28 oil tankers are in a queue seeking to leave the Bosporus and Dardanelles straits, the Tribeca shipping agency said on Friday.
G7 wealthy countries, the European Union and Australia agreed to bar providers of shipping services, such as insurers, from helping export Russian oil unless it is sold at an enforced low price, or cap, aimed at depriving Moscow of wartime revenue.
The ship backlog is creating growing unease in oil and tanker markets.
Millions of barrels of oil per day move south from Russian ports through Turkey’s Bosphorus and Dardanelles straits into the Mediterranean.
Most of the tankers waiting at the Bosphorus are carrying Kazakh oil and Treasury Secretary Janet Yellen said on Thursday the U.S. administration saw no reason that such shipments should be subjected to Turkey’s new procedures.
Rigzone
“Oil Rises as Traders Scoop up Bargains”
by Bloomberg | Julia Fanzeres
Monday, December 12, 2022
Traders swooped in to buy oil at the lowest price this year, as markets digested the fact that a key North American crude pipeline remains shut with no timeline for reopening.
Refined products also recovered this morning, with gasoline futures rising 1.2% after touching a new low for the year overnight.
And that brings us in a round-about way to this Reuters story titled “China shipyards feast on record LNG tanker orders as South Korea builders are full up” by Chen Aizhu on December 11, 2022 to see how Joe’s energy policy is providing China with a financial windfall, not to mention our natural gas as Joe beggars America to make China greater with his BUILD BACK BETTER WORLD program that China is a prime beneficiary of, to wit:
SINGAPORE, Dec 12 (Reuters) – China is making fast inroads in the market for newbuild liquefied natural gas (LNG) tankers as local and foreign shipowners turn to its shipbuilders for the specialty vessels because long dominant yards in South Korea are fully booked.
LNG tanker order books for Chinese yards tripled as China’s gas traders and fleet operators sought to secure shipping after freight rates soared to records following the upending of global energy supply flows by Russia’s invasion of Ukraine.
With South Korean shipbuilders swamped by orders to service Qatar’s massive North Field expansion, Chinese yards also attracted more foreign bookings, including first overseas orders for some ship makers only recently certified to build membrane-type LNG carriers.
Chinese shipyards this year won 45 LNG tanker orders worth an estimated $9.8 billion, about five times their 2021 order values, according to shipping data provider Clarksons Research.
By late November, Chinese yards had grown their LNG order books to 66 from 21, giving them 21% of global orders worth around $60 billion.
U.S. GAS
China’s demand for LNG tankers is propelled by a need to ship 20 million tonnes a year of gas from the United States, part of a boom set to swell the global LNG fleet by a third over the next five years, said Robert Songer, analyst at commodity consultancy ICIS.
China needs about 80 vessels to transport U.S. LNG, said SIA Energy’s Li.
Strong local shipbuilding benefits state energy giants PetroChina, China National Offshore Oil Corporation and Sinopec, and private firm ENN Natural Gas Co, helping to better secure a fuel key to meeting China’s 2060 carbon-neutral target.
Rigzone
“Oil Down on Recession Fears”
by Bloomberg | Julia Fanzeres
Friday, December 16, 2022
Fears of a global economic slowdown pushed oil prices lower, outweighing news that the Biden administration will start buying crude to replenish strategic reserves.
The sustained dip into the $70 range prompted the Biden administration to make good on its promise to replenish the nation’s emergency oil reserves, starting with a three million barrel purchase of crude for February.
The plan briefly jolted oil prices but was quickly digested by the market with the 3 million barrel purchase paling in comparison to the 180 million that were released.
********************************
The Daily Caller
“Biden Admin Quietly Raises The Price It’s Willing To Pay To Refill Oil Reserves”
Story by Jack McEvoy
16 DECEMBER 2022
The Energy Department announced Friday that it would begin buying oil to refill the U.S. Strategic Petroleum Reserve (SPR) at prices below $96 per barrel, even though the White House previously stated that it would begin buying back oil at a price of $67 to $72 per barrel.
The Energy Department declared that it would start to repurchase crude oil at a lower price than the $96 per barrel average price that barrels were previously sold for to secure a “good deal” for the taxpayer, according to an official press release.
However, the White House said in October that the department would buy oil back once the average price of oil reached $67 to $72 a barrel, touting the plan as a “win for taxpayers.”
President Joe Biden began draining the SPR in March to bring down gas prices after energy shortages became exacerbated by Russia’s invasion of Ukraine.
The nation’s emergency oil reserves are currently at their lowest level since 1984 and although gas prices have been falling since late November, the price of a gallon of gasoline is still 86 cents higher than it was when Biden was sworn into office, according to the Energy Information Administration.
The Biden administration has issued the fewest acres of land for federal oil and gas leases since the 1940s, The Wall Street Journal reported in September.
Although Biden has criticized fossil fuel producers for failing to produce enough fuel to bring down prices, energy executives believe that the administration’s negative attitude toward the industry is dampening investment, according to a June survey conducted by the Dallas Federal Reserve.
Investing.com
“Crude oil higher; weaker dollar helps tone as focus remains on China”
By Peter Nurse
Dec 20, 2022
Investing.com — Oil prices rose Tuesday, helped by a weaker U.S. dollar and plans of the Biden administration to refill its petroleum reserve, although gains are limited by uncertainty over China’s COVID outbreak.
The U.S. government announced late last week that it is planning to refill its strategic reserves, initially buying 3 million barrels of oil, having run the Strategic Petroleum Reserve down to its lowest level in nearly 40 years.
“The U.S. is signaling a change in course that should put a floor under the oil market.”
“Instead of being a seller from the Strategic Petroleum Reserve, the U.S. is now a buyer, and that is a wake-call to the market that has been intoxicated with SPR barrels,” said Phil Flynn, senior energy analyst at PRICE Futures Group.
I’ve see a lot of very stupid people in Washington, D.C. in my lifetime, but this crew of “wreckers” in there now take the cake, cutting of their noses to spite their faces, with all their moves based on hatred of Russia and China whose economies the Biden “wreckers” are trying to destroy:
Rigzone
“Oil Rises as US Stockpiles Decline”
by Bloomberg | Chunzi Xu and Julia Fanzeres
Wednesday, December 21, 2022
Oil rallied to the highest since early December as US crude inventories fell more than anticipated.
Russia’s seaborne oil shipments collapsed in the first week of Group-of-Seven sanctions targeting Moscow’s petroleum revenues, a potential source of alarm for governments around the world.
Rigzone
“Oil Closes at Three Week High”
by Bloomberg | Julia Fanzeres and Chunzi Xu
Friday, December 23, 2022
Oil rallied to a three-week high and clinched a second straight weekly gain after Russia warned it may cut output by as much as 700,000 barrels a day in response to sanctions on the nation’s crude.
Rigzone
“High Volatility Frustrates USA Efforts to Refill Oil Reserves”
by Bloomberg | Sheela Tobben
Tuesday, January 10, 2023
The Energy Department last week rejected all offers to replenish the stockpile, citing among other factors that the proposals were too expensive.
But some traders who made offers said the length of the sale window — nearly 2 weeks, compared with about 48 hours for most crude tenders — left them open to big market swings.
Had they priced their crude too low, they might have left money on the table, they said, asking not to be named discussing confidential matters.
During the Energy Department’s offer window, US crude futures traded in a massive $9 range.
That kind of volatility stands to frustrate efforts to refill the reserve after stocks depleted last year.
While the Biden administration would like to buy oil for much less than the $102-a-barrel price at which it sold last year, market conditions may not be conducive — effectively spoiling the White House’s plan to “buy low, sell high.”
Rigzone
“Gasoline Price More Expensive Than Year Ago Levels”
by Andreas Exarheas | Rigzone Staff
Friday, January 27, 2023
The price of regular gasoline in the U.S. is more expensive than year ago levels, according to data from the U.S. Energy Information Administration (EIA), AAA Gas Prices, and GasBuddy.
The Daily Caller
“SUZANNE DOWNING: Biden’s Crude Oil Supply Raid Has Plunged America Into Crisis”
Opinion by Suzanne Downing
29 January 2023
Rep. Steve Scalise of Louisiana got it right: Over the past two years, President Joe Biden stalled domestic energy production, begged Saudi Arabia to send more oil to America and drained the Strategic Petroleum Reserve — all in his effort to lower gas prices in advance of the 2022 election.
It’s at the point where the national oil reserve created in 1975 to be available in the event of a national emergency is becoming its own emergency.
Under the Biden administration, the midterm election and spiking gasoline prices created a political crisis for Democrats, one that the president solved by draining 42% of what was in the Strategic Petroleum Reserve when he took office.
Biden abused the Strategic Petroleum Reserve, says Rep. Stephanie Brice of Oklahoma.
The 638 million barrels of emergency oil in January of 2021 is down to 371 million barrels in January of 2023.
How much is that in real terms?
371 million barrels is not much more than one barrel per American, which will make enough gasoline to power your car for 280 miles, give or take a hill.
Biden said just before the November election that the administration would, after 18 months of draining the reserve, begin to refill it in the first quarter of 2023.
The Department of Energy put out contracts to buy three million barrels of oil from producers at a price between $70-$78 a barrel.
It was not much, but it was a start of less than 1%.
The bidding period closed in late December and bids were to be reviewed and awarded on Jan. 13, with deliveries expected to be poured back into Big Hill Strategic Petroleum Reserve in Beaumont, Texas, in February.
It would restore less than 1% of what has been removed from the emergency supply by the administration, but it was a start.
Quietly in January, the Department of Energy decided it did not have any acceptable bids, and simply awarded no bids, without an explanation.
There will be no three million barrels put back into the SPR this round and the Department of Energy has clammed up about it.
Reasonable people ask why.
Biden wants Americans to believe he has lowered gas prices.
Here are the facts: In 2021, gas averaged $3.01 a gallon.
Today, gas in America averages $3.50, a nearly 17% increase.
Time is marching on for this president.
It’s year three of his first term.
He promised he’d put oil back in the SPR, and now he cannot deliver on that promise.
While his policies continue to suppress domestic energy production, and demand around the world is exceeding supply, the president has made the nation a less secure place because he traded our national security for power — his own political power.
Rigzone
“Oil Falls After Settlement as US Plans to Sell From SPR”
by Bloomberg | Julia Fanzeres/Immanual Milton/Natalia Kniazhevich
Monday, February 13, 2023
Oil fell after the close of the regular trading session on a Bloomberg News report that the US plans to sell more crude from the Strategic Petroleum Reserve, adding supplies to an already-glutted market.
The US is looking to sell 26 million more barrels from the reserve, with deliveries taking places between April and June.
The non-emergency sale from the SPR was mandated by 2015 legislation, and the Energy Department had sought to stop some of those releases to refill the emergency reserve.
Rigzone
“Oil Falls on SPR Oil Release and Rising Inflation”
by Bloomberg | Immanual John Milton and Natalia Kniazhevich
Tuesday, February 14, 2023
Oil extended losses that began after Monday’s close with the announcement that the US was selling more crude from its strategic reserves, with a higher-than-expected inflation figure adding pressure.
The Strategic Petroleum Reserve will fall to its lowest level in over 40 years as a result of the administration’s decision to move forward with a congressionally mandated sale of 26 million barrels of crude.
West Texas Intermediate settled near $79 a barrel, slipping on the day but clawing back from over a 3% drop early in the session after data showed consumer prices rose the most in three months.
Rigzone
“Oil Falls as SPR Refill Looks Weak”
by Bloomberg |Immanual John Milton
Thursday, March 23, 2023
Oil halted its recent advance as weakening sentiment weighed on broader markets and the US government signaled that refilling the Strategic Petroleum Reserve will take longer than previously expected.
Restocking the oil reserve this year at the administration’s target price of $70 a barrel will be “difficult,” US Energy Secretary Jennifer Granholm said Thursday.
Rigzone
“Biden Has Limited Options to Respond to OPEC+ Cut”
by Bloomberg | Ari Natter
Monday, April 03, 2023
OPEC+’s surprise move to cut 1 million barrels a day of oil production is poised to raise US fuel prices just as President Joe Biden is expected to launch his re-election campaign.
He has a limited range of options with which to respond.
1: Tap the Strategic Reserve
Biden may go for another release of oil from the Strategic Petroleum Reserve.
The emergency stockpile was created in the 1970s after the Arab oil embargo.
It’s holding about 371 million of barrels, according to Energy Department data, around half the SPR’s capacity, largely due to a historic release of 180 million barrels last year to tame surging gasoline prices in the wake of the war in Ukraine.
The administration has made refilling the SPR a priority, but it has been hampered by factors that include maintenance at two of the reserve’s four sites.
Energy Secretary Jennifer Granholm has said the government isn’t able to release oil from the cache and refill it at the same time, so an emergency sale would likely further delay any plans for replenishment.
Quartz
“How Joe Biden’s oil bet went sideways”
Story by Tim Fernholz
4 April 2023
US energy secretary Jennifer Granholm has predicted the country won’t replace the 180 million barrels it released from the SPR until 2024 or 2025.
Talk about idiotic double-talk from a mindless idiot which comes across as gibberish, this takes the cake:
Rigzone
“USA to Cancel Congress-Ordered Sales to Refill SPR”
by Jov Onsat | Rigzone Staff
Thursday, April 13, 2023
“We’re planning on filling—refilling it”, Department of Energy (DOE) Secretary Jennifer Granholm told the Columbia Global Energy Summit.
“We want to get it to the place it would have been had it not been for the war and the sales as a result of that”.
The SPR, mandated by law to be only used during severe supply disruptions, stood at 369.6 million barrels as of April 7, according to the latest update by the Energy Information Administration.
“The way the SPR works, it’s got four sites, four main sites.”
“Two of them are in maintenance right now and two of them are selling oil on the market right now because congress has mandated the sale of 26 million barrels from previously, in order to fill budget holes”, Granholm said at the summit.
“And so we have—we have a legal obligation to do that.”
“And because of the way the SPR works, you cannot sell and take in at the same time.”
“And so the sales for the congress’ requirements will be finished in the June, July timeframe and then we will look to be—to take advantage of prices if it is advantageous to the taxpayer in the rest of the year,” Granholm added.
“So, we hope that we’ll be able to start refilling but it’s a lot to refill, I mean—meaning there’s a hundred and sixty million barrels… it’s actually a little bit more than that,” Granholm continued.
Granholm also told the summit, “another odd thing about the strategic petroleum reserve is that it takes more time to put the oil back in than it does to take it out and so the fill rate is significantly slower than the sale rate, than the outgo rate”.
“So—but we’re doing that”, she affirmed at the summit.
“We’ve got a plan to do it.”
“We’re going to cancel some of the sales that congress had mandated, about a hundred and forty million barrels worth of sales, so that we’ll get back up to where we would have been had it not been for these sales,” Granholm added.
“We still have the largest strategic petroleum reserve in the world right now, so, be clear about that.”
“We have lots of reserves but we also want to take advantage if the market is right,” Granholm went on to state in the summit.
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That spew of gibberish said as West Texas Intermediate grade oil finished at $82.16 a barrel today.