2023-07-17 14:35:59
US “Bloomberg” agency indicates that US President Joe Biden’s administration sold regarding 180 million barrels of oil from the federal stockpile within 6 months, in the fastest withdrawal ever.
Bloomberg: Empty US oil reserves threaten energy security
revealed Bloomberg AgencyToday, Monday, the West Hackberry oil facility in Louisiana, which is located on the US Gulf Coast, contains storages so huge that they are long enough to house the Empire State Building (a 102-storey skyscraper in New York City, USA).
The agency said, “The huge oil reservoirs are supposed to contain sufficient reserve supplies to ensure that oil does not run out in the United States, but the shocking thing today is that those reservoirs are half empty.”
The agency pointed out that the administration of US President Joe Biden sold regarding 180 million barrels of oil from the federal stockpile within 6 months, in the fastest withdrawal ever, to face economic pressure, but it is likely that it will take decades to refill these tanks.
Energy experts told Bloomberg that the lack of financing and dilapidated infrastructure will greatly harm the refill process.
Meanwhile, with reserves at a 40-year low, the US might be vulnerable to oil price shocks. This also means that during a domestic supply crisis, the United States will be left at the mercy of global exporters such as Saudi Arabia, Russia and the rest of the OPEC+ members.
The strategic petroleum reserve in the United States currently stands at 346.8 million barrels, which is the lowest level since 1983, and this number will suffice the United States in emergencies for only 18 days.
And the US Bloomberg Agency indicated that “following energy costs have declined, comes the task of refilling the reserves. This will be a complex and expensive process, as oil prices are now much higher than when most of the stock was originally purchased, as the average price paid for oil was in The reserve is $29.70 a barrel, compared to the current record cost of US crude futures contracts, which amounted to regarding $75.
A few days ago, the US Energy Information Administration said that stocks of crude oil, gasoline and distillate products in the United States decreased.
Also read: A large and sudden decline in US crude oil stocks
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