I've read a lot about tank bottoms recently and the idea that the US will run out of oil sometime around the beginning of July if things continue the way they are. Can someone say if this is true? And what are the factors leading to it?
Posted by trainwreck1968
2 Comments
As far crude oil in the US goes it’s highly unlikely that we will run out as a result of the current global crisis. The US is a net exporter of crude oil and energy overall, where the issues come is on the refining side of things, the US extracts plenty of crude from the various sources but doesn’t possess the refining capacity necessary to handle the oil it can extract. So to my understanding the issue is not crude oil running out but instead demand outpacing production of distillates like Diesel, aviation fuel and gasoline. The other issue is that refineries are currently operating at or near capacity so the loss of any one from damage or even routine maintenance would cause severe price increases and potentially result in short to medium term shortages as a result of the loss of capacity.
Barak ravid is the biggest supply producer, so as long as he doesn’t get banned, then no.
But in all seriousness, we won’t, even at the end we’ll have to some way minus 14% of our oil consumption by ramping up other energy and destroying demand.