Nearly 1/2 Of Strategic Petroleum Reserve Gone

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We’ve now drained nearly half the Strategic Petroleum Reserve.

Why does it seem no one is concerned? Our ability to weather a large supply disruption event dwindles daily

“Davidson” submits:

  • Total US Crude Inv decline 5.4mil BBL, US Crude Prod rises to 12.7mil BBL/Day, US Crude Imports decline 1.8mil BBL/Day, Fudge factor remains flat
  • Refined Prod Inv remain flat.

Q2 2023 hedge fund letters, conferences and more

One can see a very gradual rise not only in the US Consumption trend of Refined Prod but a rise in Refined Prod Exports. While there was a small rise in SPR, the change in US Crude Inv decidedly brought US working inv back to the trend since 2003. Inventories continue to reflect strong working capital discipline not present in prior decades. The rise in US Crude Prod to 12.7mil BBL/Day as oil rig implementation(gas rigs excluded in this count) is more of a function of what can be months of delays between well completion vs production.

Strategic Petroleum Reserve

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Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. His blog features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and is a contributor. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”.