Dr Carole Nakhle, CEO of Crystol Energy, is quoted in this article from the Petroleum Economist Media Network commenting on the US policy towards its Strategic Petroleum Reserves (SPR).
US Crude Oil in SPR
According to Dr. Nakhle, following Russia’s invasion of Ukraine, there was a widespread belief that there would be significant loss of Russian supplies—the IEA itself predicted around 3 million barrels per day loss (which did not materialise). In this respect, the decision to release those reserves was a reaction to the high prices that prevailed then rather than a response to loss in supplies.
She added that the US SPR release and refill has been in response to prices, though the shale revolution diminished the strategic importance of the US SPR from an American perspective. Therefore, the importance of the reserves will depend on the importance of fossil fuels, which is likely to continue for some time.
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