US Petroleum Reserve Nearly Full
According to a recent AP report, the US Strategic Petroleum Reserve is nearly full for the first time since its inception 30 years ago. This is definitely good news, as it gives the country a bit of added security in the event of a future supply disruption. But will the end of stockpiling in August help to soften demand for oil, thereby reducing prices?
Not likely. The oil reserve presently accounts for ‘only’ 75,000 barrels per day, and will thus have only a miniscule impact on worldwide demand, which stands at a staggering 84 million barrels per day. Thus, despite arguments that the end of stockpiling will “add to an overall trend of softening demand growth,” it’s likely to be little more than a drop in the proverbial bucket. Moreover, despite slowing economic growth, worldwide oil demand is projected to grow to close to 86 million barrels per day over the next year. Add to this the fact that Congress is likely to increase the size of the petroleum reserve by 300 million barrels, and we’re talking about a non-event in terms of the overall oil picture. And even if the end of stockpiling did have a positive impact on prices, it seems likely that OPEC would adjust their production levels to account for it.
My best advice? Conserve as best you can. It’s the most direct way to decrease your day-to-day costs.
Published on June 8th, 2005 - One Comment
Filed under: Energy
email this article
- bookmark it
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
Related articles...
» Strategic Gasoline Reserve?» Federal Reserve to Scale Back Check Processing Operation
» Fed Issues Major Rate Cut
» Greenspan Speaks: U.S. Economy in a Recession
» Deciding When to Refinance Your Mortgage
» Fed Raises Rates (Again)
» The End of Cash?
» From the Archives (September 30th – October 6th)
Was this article useful? Please sign up to receive our content via e-mail:
Great deals...
Readers’ choice...
Recent articles...
- Effect of Foreclosure, Short Sale, and Bankruptcy on Your Credit Score
- DIY Garage Kayak Racks: Fast, Frugal, and Effective
- Lending Club $25 Bonus Reminder
- Coupons are a Waste?
- How to Save Money on Pet Care
- Best HSA Custodian?
- Considering a High Deductible Health Plan
- Pay Back the Homebuyer Tax Credit?
- How to Find a Good Deal
- How Much Does Your Debt Cost?
Recent comments...
- Tim Rosen: Pros and Cons: Pros: a.) A systematic discipline to save/invest on a regular basis, for a...
- Matt Jabs: @Tim: Thanks, I hope this article helps get even one person on the...
- Tim Rosen: Excellent Matt! A very practical, real-world plan that I believe anyone can "flesh out"....
- Jerry Robertson: Your article has great information about the large companies going out of business, but...
- laura: I have a foreclosure on my credit from Jan 2007 and my FICO score...
- nickel: Ron: Good question, and I have no idea as to the answer. It could...
- Christina: While foreclosures wreck less havoc on the score than a bankruptcy (according to your...
- Ron: Why do you think those large mortgage lenders are switching over to Vantage? Does...
Most talked about...
- Dave Ramsey is Bad at Math
- $8,000 Homebuyer Tax Credit
- Dish Network Customer Service SUCKS
- How to Claim the First-Time Homebuyer Tax Credit
- $15,000 Homebuyer Tax Credit
- Reduced Credit Limits? Share Your Experience
- Would the "Fair Tax" Gut the Economy?
- Tax Stimulus Rebate Payments to Start Early
- Pay Off Mortgage Early? Or Invest?
- The Best Online Savings Accounts (Updated!)
- Life's Too Short to Drink Cheap Beer
- $7500 First Time Homebuyer Tax Credit
Stumble It!
Digg It!
Tip It!
del.ico.us
Facebook
Then… lets stockpile even more oil!
Comment by Jose Anes — Jun 10th 2005 @ 6:29 am