Have You Thought About The Gas?

Hi gang! I have been thinking about this "Middle East" thing. And listening to reports, Bloomberg, Goldman Sacs...etc, etc. And all the numbers that keep being bandied about! Almost all the information that seems to be coming out of our "news" channels keeps talking about the price of oil. But I do not see/hear much, if any, talking about the amount of oil that is here, in the US, in storage. Basically nothing and it seems the public is not interested.

 

 

 

 

I asked Google AI....As of May 29, the level in the Strategic Petroleum Reserve (SPR) was 357.1 million barrels. But that report was dated May 22. Tank bottom is 159 million barrels. I heard today that it is at 279 or so million. Last week we drew down approximately 9-10 million barrels.  

 

At this rate we will hit "tank bottom" sometime in August from what my math says. "Tank bottom" is 159 million barrels due to the fact that the oil is stored in salt mines/caves, and the last 150 million barrels or so has dirt, rocks, "trash" in it and can not be pumped out. 

All this does not take into consideration the fact that we are exporting oil AND importing oil also. We use "heavy oil" in our refineries, "sweet oil" (the light stuff) is what we ship out to other countries that refine it. So you can chase numbers all day and it still seems a guessing game. 

But let it suffice to say that at the current rate, the situation in the Middle East, etc.....even if "peace reigns" tomorrow....it will take several months to get that oil here and processed into the fuels we need to keep our economy running.

I will not go into the numbers being thrown around for a barrel of oil if tank bottom is reached...both here and in Europe and all the other countries that are already almost out of oil/fuel. Let me just say that IF regular gas hits $7 or more a gallon, we will probably not be in a good spot! And if gas gets that high....diesel fuel....well, $12-15/gal is being talked about if not higher. Apparently for every $10 increase in the cost of a barrel of oil, gas from the pump goes up .25 cents. Diesel goes up .29 cents. And for those that don't really think about it....everything in our economy rides on/in a semi (tractor trailer) that we take for granted in the grocery stores, online shopping, pet supplies....EVERYTHING....will slow way down or could just stop getting to the stores or wherever you shop from. And those shipping costs have to be paid....and the products that they carry is what we see as the price increases at the pump. Which means....WE will pay for the increases in the prices we pay for everything! It could make the bare shelves of COVID not look as bad as they did.

 Today a "War Resolution" was passed in the House of Reps, now goes to the Senate. So it could be a way to "gracefully" get out of this conflict. Or maybe there will be a signed agreement that brings this to a close.

But whatever is in the coming days the one thing you can be sure of....we are going to pay for this in more ways than one.

So I again say that I hope you have put back some basic food stuffs. That you have some gas stored away just in case. Might not be a bad idea to have some bottled water tucked away, extra meds, fashlights....etc, etc.

Rosie and I are stocked up, looking down the road, prepared for flood, rain, heavy rains, high winds, power failure....all those great things! I hope all of you are also!

Til later and brighter days to come.....

Frog 🐸 & Rosie 🐶