The U.S. Energy Information Administration (EIA) predicts that there could be a decline of 40 per cent in the U.S. Strategic Petroleum Reserve (SPR) from the fiscal years 2022 till 2027.
There can be a drop of as much as 100 million barrels in eh forthcoming decade in the SPR, calculated the EIA on the basis of legislated sales that has been established in a number of acts of the Congress. However, the EIA said that the resultant SPR would still be enough to meet the demand from covering of the need for importing petroleum.
The U.S. government intends to sell about 30 million barrels of crude from the country’s inventory during a period of four years between 2022 and 2025as directed by the Bipartisan Budget Act of 2018 which has been brought into force this month. The act also stipulates the sale of about another 35 million barrels of crude in 2026 alone while aiming to sell a similar amount in 2027.
Earlier the government had set an aim of selling off of seven million barrels of crude during a two-year period starting in fiscal 2026 and in fiscal 2027 according to the Tax Cuts and Jobs Act of 2017 which was brought into force last December.
And the government also expressed its aim of sale of 149 million barrels of crude in fiscal year 2017 till 2025, both years inclusive, through three acts that were enacted by the Congress in 2015 and 2016.
The U.S. SPR should get reduced to reach about 4101 million barrels at the beginning of the year 2028 if there are no other legislations enhancing or reducing the SPR levels through sale are done.
At the start of 2017, over 695 million barrels of crude oil was stored which was about 97 per cent of the total of 713.5 million barrels of capacity the storage sites were deigned for, in the four storage sites that are located along the Gulf of Mexico. The country had managed to maintain a steady level of SPR for a number of years before the start of the fiscal year of 2017.
The country had been granted a capacity to cover 252 days of crude oil import by the amount of net crude oil and its related petroleum products that was held in the SPR itself according to the statistics of November 2017 levels. An additional 172 days of import of crude is covered by the amount of crude oil that is stocked with private and commercial companies which amounts to about 452 million barrels.
And by 2029, it is anticipated that the U.S. would turn into a net exporter of oil according to the Reference case of EIA’ s latest Annual Energy Outlook. According to other cases that have greater amount of domestic petroleum production, it is estimated that it could even be before 2029 that the United States would become a net petroleum exporter.
(Adapted from Xinhuanet.com)