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WestTexasBorn's avatar

Ted, this is a good thought provoking article.

Is the US really better equipped to handle severe global supply dislocations now than since the 1960's Is LTO a fungible equivalent to the oil stored in the SPR? I don't think it is.

The US exports most LTO production. SPR oil is intended to be refined and subsequently used in the best interest of the nation. Except of course for that stuff Biden exports in a somewhat vain attempt to lower global oil prices.

It is extremely unlikely that Congress will fund the replenishment of the SPR in the next 2 year. It is much more likely that Congress continues to dip into the SPR to make spending bills appear revenue neutral.

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Ted Cross's avatar

Dave that is a great question. I am not familiar with what the recovery is from oil stored in salt caverns. Presumably some amount is residual. I will ask around.

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