02/17 10:42 *U.S. DOE OFFERS OIL FIRMS ROOM TO STORE 70 MLN BARRELS OIL IN SPR

WASHINGTON, Feb 17 (Reuters) - The U.S. Department of Energy is offering to store for oil companies up to 70 million barrels of crude oil in the nation's Strategic Petroleum Reserve, a DOE official said Wednesday.

The offer is part of a relief package being unveiled this week by the DOE to help oil producers suffering from low crude prices and also to ensure the United States has an adequate stockpile of emergency oil.

Ray

-- Ray (ray@totacc.com), February 17, 1999

Answers

How much does the US use in an average day?

-- Brett (savvydad@aol.com), February 17, 1999.

I'm gonna look for consumption information nationwide, but I can tell you that 70 million barrels is a mere drop in the bucket. It's like that $50 billion in extra currency. Doesn't mean anything. Texas alone produces more than 70 million barrels in less than two months, according to the Railroad Commission of Texas.

-- Vic (Roadrunner@compliant.com), February 17, 1999.

The following is para-phrased from an article by Ed Yardeni on 12/28/98. Full text available on Gary North's site in Stock Market category:

The U.S. consumes 18 Million Barrels/day. We import 8 Mbbls/day, or about 45%.

The Strategic Oil Reserve holds 650 Mbbls or about 3 months supply.

Import breakdown: Venezuela - 1.729 Mbbls Saudi Arabia - 1.391 Mbbls Mexico - 1.366 Mbbls Canada - 1.473 Mbbls Nigeria - .678

According to recent estimates of Y2K readiness in these countries, it is estimated that we will have an immediate 2 Mbbls/day shortfall.

The U.S. is the only country with privately held oil stocks - Europe has NO government reserve.

Mike.

-- Michael H. Cumbie (Mikecumbie@aol.com), February 17, 1999.

Michael,

I read somewhere recently that Japan has its own version of the Strategic Petroleum Reserve.

-- Kevin (mixesmusic@worldnet.att.net), February 17, 1999.

Kevin:

That is probably true - I didn't see that in the article. I appreciate the info, though.

There are sooo many pieces to this puzzle.

I was working in California during the 1974 oil embargo - it was NOT any fun. I'll bet Japan will let us have some of their oil if TSHTF, though, right?

Mike

-- Michael H. Cumbie (Mikecumbie@aol.com), February 17, 1999.

Ray, I read that article too. Thanks for the reminder. I think the USA should restock the oil reserves as much as possible, especially if we get a bargain. If I remember correctly, the article also said the reserves were drawn down a couple of years ago when oil was at a higher price than today. Sell high, buy back low. Uncle Sam made a nice deal, I think. Prices probably won't be this low again, ever.

M

-- Margaret Janssen (janssm@aol.com), February 17, 1999.