Not A Charm@not_a_charm

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Stephen Schork on US energy reserves

🇺🇸🇻🇪 America's emergency oil reserve is down to about 110 days of cover, and the Venezuelan crude meant to refill it is years away from flowing Stephen Schork spent years on the NYMEX floor and measures the Strategic Petroleum Reserve the way traders do, in days of import cover. Before the war it held over 200. A year ago, 150. Today it's near 110, and only 20 to 30 million barrels can still be physically pumped out before the salt caverns hit their floor. The rescue everyone points to won't arrive in time. Venezuela pumps a third of what it did before Chavez gutted its oil company, and Schork puts the repair bill at seven to eight billion dollars a year for the next decade. Which leaves the winter arithmetic: California's harvest, then the container season, then Midwest corn on eight-dollar diesel, with New England bidding against Europe for heating oil.

1mo

Not A Charm@not_a_charm

Follow

Stephen Schork on US energy reserves

🇺🇸🇻🇪 America's emergency oil reserve is down to about 110 days of cover, and the Venezuelan crude meant to refill it is years away from flowing Stephen Schork spent years on the NYMEX floor and measures the Strategic Petroleum Reserve the way traders do, in days of import cover. Before the war it held over 200. A year ago, 150. Today it's near 110, and only 20 to 30 million barrels can still be physically pumped out before the salt caverns hit their floor. The rescue everyone points to won't arrive in time. Venezuela pumps a third of what it did before Chavez gutted its oil company, and Schork puts the repair bill at seven to eight billion dollars a year for the next decade. Which leaves the winter arithmetic: California's harvest, then the container season, then Midwest corn on eight-dollar diesel, with New England bidding against Europe for heating oil.

1mo