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Yes, just announced. They will be using the most expensive oil to fill the reserves up, as a way of financially propping up the oil and gas industry. https://w
by sambull 7y ago
Yes, just announced. They will be using the most expensive oil to fill the reserves up, as a way of financially propping up the oil and gas industry.
https://www.energy.gov/articles/us-department-energy-make-strategic-petroleum-reserve-storage-capacity-available-struggling https://www.energy.gov/articles/us-department-energy-make-st...
- barney54 7y agoThe most expensive oil? Oil is currently $25 a barrel. What am I missing here?
- sambull 7y agoThe oil is from US producers, when they sell that oil out it won't be for $25/barrel when most of that oil will be from fracked wells costing $50+/dollars a barrel to operate [1]. "The U.S. Energy Information Administration (EIA) estimates that in 2019, about 2.81 billion barrels (or 7.7 million barrels per day) of crude oil were produced directly from tight oil resources in the United States. This was equal to about 63% of total U.S. crude oil production in 2019." [0] [0] https://www.eia.gov/tools/faqs/faq.php?id=847&t=6 https://www.eia.gov/tools/faqs/faq.php?id=847&t=6 [1] https://www.huffpost.com/entry/oil-price-fracking_n_5e669a89c5b6670e72fccde6 https://www.huffpost.com/entry/oil-price-fracking_n_5e669a89...
- the-dude 7y agoOil comes in many different qualities. The price is probably for WTI ( Texas?), there are others. For lower quality oil than this standard, lower prices are paid. For higher qualities, higher prices.
- didgeoridoo 7y ago>> “Making some of the SPR’s storage capacity available to industry, without purchasing the oil, provides this immediate benefit to the industry and its hard-working employees” The government is not buying any oil. The SPR is being opened up for storage so expensive producers can hold onto supply until prices recover.