Strategic Petroleum Reserve
A “Strategic Resilience Reserve” (SRR) could follow the model of the Federal Reserve’s efforts to address financial stability risk: aiming to prevent crises, and reducing harm when they occur.
Introduction On Friday, the Biden Administration announced that its October solicitation for crude oil had successfully closed with the acquisition of 2.7 million barrels of oil for delivery in January 2024, while simultaneously announcing a new 3-million-barrel solicitation for delivery in February. When DOE announced its strategy to open
Introduction Oil markets have always been a geopolitical concern. Widening crack spreads (reflecting a tighter market) suggest that the emphasis today may be on the “geo,” rather than the “political”, as specific grades of oil—heavy or light, sweet or sour—are associated with specific geographies complicating the overall petroleum
Introduction The Biden Administration has successfully executed a forward contract acquisition for the Strategic Petroleum Reserve. We’re extremely pleased to see the Department of Energy (DOE) successfully utilize its new authority, and even more excited that it simultaneously announced another forward contract acquisition for September delivery. These repurchases leverage
"This year it will be difficult for us to take advantage of this low price…But we will continue to look for that low price into the future." - Secretary Jennifer Granholm on March 23, 2023 "We cannot sell and take in (crude oil) at the same
This is a continuation of our Contingent Supply series. The first piece described why storing spodumene would be a worthwhile endeavor for a lithium strategy. This piece describes the importance of selecting the right location for spodumene reserves.
In a continuation of our Contingent Supply series, we explore how a critical minerals club could undertake our SPR approach to boosting production of a highly volatile commodity, lithium.
The surprise announcement of OPEC cuts this weekend has caught market participants and the Biden administration off-guard. OPEC's "voluntary" cuts to crude oil production have pushed up crude oil prices across the futures curve. From our vantage point, these OPEC cuts are a potentially welcome development
Summary The benchmark West Texas Intermediate (WTI) spot price for crude oil has settled at or below the President’s committed $67-$72 refill range for nearly two weeks. Back in October of 2022, the White House finalized groundbreaking regulatory revisions to support the price and production of crude oil,
