windywave wrote:
Here's the way I look at it....the SPR is for something really serious....
Katrina wiping out 80% of production in the gulf for example. Turning on the spigot in 2021 was to keep prices down instead of letting the market sort it out. The Russian invasion could have been a reason but turned out it wasn't....
So when is the SPR spigot getting turned off. Now look at a calendar that has the US mid-term election on it. Make sense yet?
Not exactly. The combo of Katrina and Rita took about 8% of US production off line for while. Of the roughly 4,000 production facilities in federal waters, 37 platforms were destroyed. Those produced about 1% of total Gulf production. Oil prices spiked to $70 but quickly dropped down again. In end the US only released about 30% of what it had planned from the SPR as other producers took up the slack
U.S. oil production in November 2020 was 13 Million bpd. In November 2021 it was 11 Million bpd. Oil prices hit $143 per barrel in March.
Windy logic 8% reduction in production = Release the SPR!
16% reduction in production = Don't release the SPR! That would be Socialism!
Oil at $70 per barrel = Release the SPR!
Oil at $143 per barrel = Don't release the SPR!