Publications: Notes at the Margin

The SPR Threat; Strong Demand (August 3, 2015)


This week’s report begins with US Strategic Petroleum Reserve. The United States is obligated under the International Energy Program (IEP Agreement) to hold public and private stocks equal to ninety days of net imports. For years, the US struggled to reach this level. Today, thanks to conservation programs and fracking, US stocks cover three hundred forty-three days of net imports. The government-owned SPR on its own covers one hundred thirty-nine days. The United States is swimming in oil. The SPR, to be blunt, is superfluous. We finish with a short discussion of strong US gasoline demand and falling US crude supply. The Department of Energy began to revise its domestic crude output estimates downward late Friday.


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