Showing posts with label Strategic Petroleum Reserve. Show all posts
Showing posts with label Strategic Petroleum Reserve. Show all posts

Monday, August 17, 2026

TLT and IEF in the bond drawdown news

SPR isn't the only thing in drawdown lol, down 49.5% since the beginning of 2022. Oil. Pffft. Who needs it, right?

Long term bond investors are getting killed, if any are left still standing. The article linked says most fixed income investors have gone ultra short.

Meanwhile the personal saving rate, which includes monies being socked away in retirement accounts, has plunged to 2.7% in June 2026. A prosperous people saves. Ours is doing something else. 

 

Imagine being down 6.7% per year for five years straight in the "safe" part of your portfolio, or even 1%, when inflation has been raging at 4.5% on average. Real return is far, far more negative.

Here:

... The iShares 20+ Year Treasury Bond ETF (TLT), for example, has posted an average annual return of negative 6.7% over the past five years, while its 7-10 Year Treasury Bond ETF (IEF) has posted an average annual decline of 1%. ...

 

Saturday, August 15, 2026

GAO said in 2022 the SPR was in very good condition, Trump's Energy Department came into office saying it wasn't, recent drawdowns only compound the problems in the 60 salt caverns

The damn thing will probably collapse before they're done.

Maybe instead of a ballroom next to the White House they can build some new tanks instead. 

SPR depletion raises questions about integrity of caverns that store oil

... The Government Accountability Office said in a May report that “repeated partial drawdowns followed by refill can leach a single part of a cavern repeatedly, leading to undesirable shapes.” 

The majority of the SPR’s caverns were found to be in “very good condition” after the 2022 drawdown, according to the GAO.

“However, every drawdown cycle expands cavern volume and reduces the spacing between caverns within the salt dome, which ultimately reduces their long-term viability,” it said.

To release oil from the SPR, water is pumped into the bottom of the caverns to displace the crude to the surface and pump it through wells into pipelines.

Seventy million barrels is the strict physical minimum needed at the top of the caverns to keep the extraction pipes safely submerged in oil rather than water, said Siddharth Misra, a petroleum engineering professor at Texas A&M University.

But “the practical operational floor for the crude inventory is between 250 million and 300 million barrels,” Misra said in an email to CNBC. At current inventory levels, “cavern integrity and overall operational capability are at an elevated risk,” he said.

When the inventory drops below 300 million barrels, the SPR loses its ability to pump oil at rapid speeds to address emergencies, Misra said. The system’s pipes and pumps could also get damaged as the oil layer thins at the top and sludge rises toward the extraction intake at the cavern ceiling, he said.

Fresh water is often pumped into the caverns during rapid drawdowns which dissolves the salt walls, Misra said. This “creates flatter, less stable roof and severely thins the critical salt pillars that separate adjacent caverns, greatly increasing the geological risk of a structural cave-in,” he said.

The SPR was originally designed for five full drawdowns. Instead, it has executed dozens of large and small releases over the past 40 years, Misra said.

“Because the system was not designed for this many cycles, the repeated injection of water and extraction of oil have caused severe cavern deformation, accelerated the rate of massive salt falls from the ceilings, and significantly weakened the overall structural integrity of the aging reserve,” he said.

Energy Department officials told the GAO that they are “holding the SPR infrastructure together with ‘Band-Aids,’ and that it is uncertain how long they will hold.” More than a quarter of the SPR inventory was “not available for drawdown due to a combination of construction outages and cavern outages” as of December 2025, the GAO found. ...

Thursday, July 9, 2026

Some people think it is significant that U.S. commercial stocks of crude oil increased a little bit week over week to 411.4 million barrels as of 7/3/2026

Well, I don't.

Whenever U.S. commercial companies buy oil from the U.S. Strategic Petroleum Reserve at auction, those barrels are subtracted from line three but are added to line two. 

It's more complicated than that because some oil might be stored temporarily, or refined into other products which means it shows up on other lines, or it gets exported and shows up there.

The point is sales from SPR distort the U.S. picture, IF those sales are purchased by U.S. commercial companies.

And for March through early July, U. S. commercial companies have purchased AT LEAST 52 million barrels from SPR.

That has distorted the true state of U.S. commercial stocks from week to week throughout the period. 

Meanwhile, speaking of distortions . . . where did they get the product for this?

White House touts launch of 25 Freedom Fuel gas stations

... “The FIRST Freedom Fuel Network gas station has LANDED in Philadelphia, lowering the price at the pump to $3.47 for our 47th President,” the White House wrote on the social platform X on Tuesday. ... Twenty of the stations are located in Pennsylvania, while five are in New Jersey, according to the Freedom Fuel network’s website. A White House official told The Hill the Freedom Fuel Network is a private company and did not receive subsidies from the administration. ...

   


Monday, May 25, 2026

Failure of nerve: Trump's ceasefire has only made Iran stronger with each passing day and their negotiating position its strongest in 47 years

Hostilities lasted 38 days. 

Today is the 48th day of the ceasefire, the chicken-out. 

Asia is sucking fumes.

Europe is buying from the US Strategic Petroleum Reserve and will be in trouble similar to Asia in June, and the US itself will develop problems in July.

Oil market at ‘tank bottoms’ in Asia, and Europe isn’t far behind, warns market veteran Jeff Currie 

... “I would say, Asia, you’re there. Europe, give it about another month, and look for July being a problem in the U.S.,” Currie said. ... “Every day that goes by, Iran’s negotiating leverage compounds. Why? Because inventories of oil and inventories continue to drop,” he said. “The minute you think you won, that’s exactly when you know you probably lost, and their negotiating position at this point has never been stronger in the last 47 years.” 

Wednesday, March 11, 2026

Mad King Ludwig to release 172 million barrels of oil from SPR lol

That will take the level below 250 million barrels, enough to last the country just twelve days in an emergency. 

 Iran war: Trump will release 172 million barrels of oil from Strategic Petroleum Reserve

 

Saturday, May 10, 2025

Hello Washington Times, hello, how did Biden's increased oil supply from the SPR to buy the 2022 elections lead to increased gasoline price at the very same time?

 I'm so confused.

Doesn't price drop on an increase in supply?

"Let's increase supply so prices rise so the voters vote for us and not them" makes absolutely zero sense.

... Mr. Biden sold off hundreds of millions of barrels of oil after Russia invaded Ukraine, causing already rising gas prices to spike even higher. ... 

The Biden administration sold off roughly 206 million barrels of oil from the SPR between 2021 and 2023. ...

Democrats fended off an anticipated red wave in the November 2022 midterms, keeping control of the Senate and barely losing House seats, although Mr. Biden’s party remained in the minority in the lower chamber. ...

More



 



 

Tuesday, December 19, 2023

Joe Biden imprudently released 255 million barrels of crude oil from the Strategic Petroleum Reserve from November 2021 to May 2023

 The November 2021 level was about 605 million barrels, about 30 days worth of supply at a 2022 consumption rate of 20 million bpd.

The 350 million barrel level was reached in May 2023 and has been range bound there for eight months. That is about 17.5 days worth of supply.

Crude oil price has not cooperated for refilling what was released. The 2021 price averaged $68 and climbed to nearly $95 in 2022. With 2023 almost over the price has averaged nearly $78.

The release of less than two weeks of supply during 2022 and 2023 as prices skyrocketed looks like a really silly political stunt. Crude oil production has rebounded to what it was under Donald Trump, so there's been plenty of supply in the higher price environment and no need to squander the SPR in this way.

Now it is too expensive to refill cheaply.


 





Wednesday, October 19, 2022

Tuesday, July 5, 2022

Damn fool Biden administration releases crude oil from the Strategic Petroleum Reserve to reduce fuel prices, 5 million barrels get exported abroad last month, including to China

 

  • Oil From U.S. Reserves Shipped Overseas as Gas Prices Stay High 

  • More than 5 million barrels of oil that were part of a historic U.S. emergency reserves release to lower domestic fuel prices were exported to Europe and Asia last month . . ..

    Thursday, November 5, 2015

    To pay for highway bill, US House relies on selling strategic oil reserve and privatizing IRS employment instead of raising gasoline taxes

    From the story here:

    "The bill is in fact financed with a collection of offsets that many lawmakers find objectionable, such as raising $9 billion by selling oil from the country’s emergency oil reserves. Roughly $2.5 billion comes from requiring the Internal Revenue Service to use private debt collectors, reviving a controversial program opposed by many Democrats, consumer groups and the union that represents agency employees."

    Thursday, June 23, 2011

    Obama Regime Tries to Mollify Restless Natives, Releases Oil From Strategic Reserve

    The bread and circuses continue.

    Story here.

    Combined with announcing an end to the surge in Afghanistan last night, the man who would be king is trying to remedy political and economic disasters of his own making.

    The surge has been ineffective, and the drilling moratorium a disaster. So like FDR he'll just keep trying things in the hope that they will work.

    Good thing we decided to limit presidents to two terms.