U.S. Signals No Interest To Replenish Its Strategic Oil Reserves

Bloomberg: US Rejects Another Round of Offers to Replenish Oil Stockpile 

The Biden administration is again delaying a replenishment of the nation’s emergency oil reserve because of market conditions, according to people familiar with the matter. The decision comes as oil prices have rallied above $80 a barrel. 

The Department of Energy is not taking up offers it got for a potential purchase, said the people, who asked not to be identified as details of the process haven’t been published. The administration rejected offers in January. 

“The DOE remains committed to its replenishment strategy for the SPR, including direct purchases when we can secure a good deal for taxpayers; exchange returns; and cancellation of planned sales where drawdown is unnecessary, in coordination with Congress,” Energy Department Deputy Chief of Staff Bridget Bartol said.  

Read more ....  

WNU Editor: They did warn us a few weeks ago this was going to happen .... Energy Secretary vows to refill emergency oil stockpile — but warns that won’t happen before a second Biden term (CNN). 

I for one would not be surprised if the Biden administration will release the last of America's strategic petroleum reserves in the months leading to next year's elections in order to keep prices down.

U.S. Signals No Interest To Replenish Its Strategic Petroleum Reserves  

US pulls back offer to buy 6 million barrels of oil for emergency reserve -- Reuters  

U.S. Withdraws Offer To Buy 6 Million Barrels Of Oil For The SPR -- OilPrice.com 

Biden Admin Gives Up On Refilling Strategic Petroleum Reserve Due To "Market Conditions" -- Zero Hedge

It Will Take Decades To Refill America's Strategic Oil Reserve

Bloomberg: Massive US Oil Caverns Sit Empty and Will Take Years to Refill 

(Bloomberg) -- Stroll through the West Hackberry oil facility on the US Gulf Coast and there’s not much to see: some pipelines and other industrial equipment. But buried deep beneath the surface are storage caverns so massive they’re tall enough to house the Empire State Building with plenty of room to spare. 

These reserve sites are supposed to hold enough backup supply to ensure the US never runs short of oil. Right now, they’re sitting half empty. 

It only took about six months for the Biden administration to sell off 180 million barrels from the federal stash in the fastest withdrawal on record. But refilling it to capacity will likely take decades, if it happens at all. 

Experts say that a lack of funding and aging infrastructure will plague the process, even as the Energy Department has pledged to keep buying. 

Read more ....  

Update: 'Massive US Oil Caverns' Are Now Empty, Will Take 'Decades To Refill' Thanks To Biden (Zero Hedge).  

WNU Editor: This means the U.S. only has a 20 day emergency supply of oil.

Strategic US Crude Oil Reserves Continue To Drop

The Bryan Mound Strategic Petroleum Reserve, an oil storage facility, is seen in this aerial photograph over Freeport, Texas, U.S., April 27, 2020. REUTERS/Adrees Latif

U.S. SPR RESERVES OF CRUDE OIL FELL BY 1.58 MILLION BARRELS LAST WEEK TO 368 MILLION BARRELS, LOWEST SINCE OCT 1983

— Market Rebellion (@MarketRebels) April 17, 2023

Reuters: U.S. Emergency Oil Reserves Tumble to Lowest Since 1984 

HOUSTON (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. It comprised of about 6.3 million barrels of sweet crude and around 2 million barrels of sour crude. 

President Joe Biden in March set a plan to release 1 million barrels per day over six months from the SPR to tackle high U.S. fuel prices, which have contributed to soaring inflation. 

The Biden administration is weighing the need for further SPR releases after the current program ends in October, Energy Secretary Jennifer Granholm told Reuters last week. A DOE spokesperson later said the White House at that time was not considering new releases beyond the 180 million barrels.  

Read more ....  

Update: Strategic US crude oil reserves sharply drop (AlBawaba)  

WNU Editor: The Biden administration says there is nothing to worry about .... Biden admin says Republican concerns about oil reserve damage unfounded (Reuters).  

Update #2: I am skeptical the Biden administration is going to do this .... The Biden Administration Is Considering Refilling The SPR This Fall (OilPrice.com).

Biden Administration To Sell 26 Million Barrels Of Oil From The U.S. Strategic Oil Reserve

 

FOX News: Biden to sell 26 million barrels more from the Strategic Petroleum Reserve  

The Strategic Petroleum Reserve is currently at its lowest level since 1983 

The Biden administration on Monday announced another sale of oil from the Energy Department's Strategic Petroleum Reserve (SPR), with 26 million barrels set to be delivered to the market from April 1 to June 30, which will take the number of barrels in the reserve to a new low dating back to 1983. 

Unlike the largest-ever drawdown of the SPR that Biden announced in response to Russia's war in Ukraine, the latest release of 26 million barrels is in response to a requirement included in two laws enacted by Congress during the Obama administration under the Bipartisan Budget Act of 2015 and the Fixing America's Surface Transportation (FAST) Act. 

The announcement comes ahead of a potential uptick in gas prices as the U.S. nears the summer driving season.  

Read more .... 

WNU Editor: The Biden administration is trying to keep oil prices and the inflationary impacts that it can have as low as possible. Unfortunately, this is only a short term measure. The real solution is to expand domestic oil and gas production, but this is a policy that the Biden administration has all but discouraged since taking office. 

Biden Administration To Sell 26 Million Barrels Of Oil From The U.S. Strategic Oil Reserve  

US to Sell 26 Million More Barrels From Strategic Oil Reserve -- Bloomberg  

U.S. to sell 26 mln bbls of oil reserves as mandated by Congress -- Reuters  

US to move forward with scheduled 26M barrel sale from strategic oil reserve -- The Hill  

Biden To Sell 26 Million Barrels From the Strategic Petroleum Reserve in Hopes of Preventing Summer Gas Surge -- Yahoo News

After Announcing That They Will Refill The Strategic Oil Reserve, White House Balks At The Price That They Will Pay

© US Department of Energy  

Zero Hedge: White House Delays Refill Of Strategic Oil Reserve, Balks At "Too Expensive" Offers 

The Biden administration had no problems aggressively draining the SPR by 1mmb/d at market prices in the immediate aftermath of the Ukraine war, in hopes of lowering the price of gasoline ahead of November's elections and avoiding an inflationary midterm rout. However, when it comes to refilling the SPR, now that US emergency inventories are down to the lowest level since November 1983 and not too far from an all time low which threatens the structural integrity of the salt caverns the oil is deposited in, the White House has "unexpectedly" gotten cold feet.  

Read more ....  

Update: After Depleting Oil Reserve, Biden’s Energy Department Refuses to Fill It Back Up (Sputnik)  

WNU Editor: It was only 3 weeks ago that the White House and the main stream media were pushing this news story .... White House Begins Plan to Refill US Emergency Oil Reserves (Bloomberg). Now that the White House is having "cold feet", with the exception of Zero Hedge and a few bloggers, no one is covering this story.

US Emergency Oil Stockpiles Have Dropped To Their Lowest Level Since 1983

The Bryan Mound Strategic Petroleum Reserve, an oil storage facility, is seen in this aerial photograph over Freeport, Texas, U.S., April 27, 2020. REUTERS/Adrees Latif  

FOX News: US emergency oil stockpiles drop to lowest level since 1983 as gas prices tick up  

Keeping emergency oil stockpile levels high is important for U.S. 'energy security and national security,' GOP lawmakers have warned 

The Strategic Petroleum Reserve (SPR) fell to its lowest level since 1983 last week as U.S. gasoline prices and oil prices ticked up, according to federal data released Wednesday. 

The level of the SPR — an emergency stockpile of crude oil managed by the Department of Energy (DOE) — declined to 375.1 million barrels last week, marking the first time it has fallen below 378 million barrels since December 1983, according to the Energy Information Administration. Prior to last week, the reserve's lowest level since 1983 was recorded on Dec. 30, 1983, when it hit 378.3 million barrels.  

Read more ....  

WNU Editor: With much fanfare it was almost two weeks ago that the announcements was made that the US was going to replenish their oil stocks .... DOE Announces Repurchase of Oil for the Strategic Petroleum Reserve (Energy.gov).

With The U.S. Midterms Over, U.S. Begins Buying Back Oil For The Strategic Petroleum Reserve

The DOE announced Friday it will purchase 3 million barrels of oil to replenish the supply it depleted from the Strategic Petroleum Reserve in a bid to lower gas prices  

Daily Mail: Biden buys 3 million barrels of oil to stock up the emergency Strategic Petroleum Reserve after withdrawing 180 million to try and bring down gas prices 

* The department said it will purchase the oil for less than the $96 per barrel it sold its supply for 

* Three million barrels, only 15 percent of daily U.S. demand, is a drop in the bucket of the 180 million DOE has depleted the reserve of since March 

* At the same time the department will tap 1.8 million barrels from the reserve in an emergency exchange after a shutdown of the Keystone pipeline 

The Department of Energy (DOE) announced Friday it will purchase 3 million barrels of oil to replenish the supply it depleted from the Strategic Petroleum Reserve in a bid to lower gas prices.  

The department said it will purchase the oil for less than the $96 per barrel it sold its supply for. 

Three million barrels, only 15 percent of daily U.S. demand, is a drop in the bucket of the 180 million DOE has depleted the reserve of since March.  

The deal is part of a fixed-price plan that allows refiners to sell oil to the SPR at a stable rate and avoid selling at the volatile oil market's rate on any given day.   

Read more ....  

Update #1: U.S. begins buying back oil for strategic petroleum reserve -official (Reuters)  

Update #2: Biden administration to buy 3 million barrels of oil to replenish reserves (The Hill)  

WNU Editor: No mention among the legacy media on sky-high home heating and diesel fuel prices. I live in Montreal, and the price of home heating oil is now jaw-dropping ($2.35 Canadian/liter or almost $8 US/gallon).