The US Has Adequate Crude Reserves

Whenever Middle Eastern conflicts bring the idea of oil disruptions to the forefront, US crude reserves need to be examined. Naturally, the major draw-down of the Strategic Petroleum Reserve (SPR) is pointed-out as a concern by the less informed. Currently, US commercial crude stocks stand at 423 million Bbl. while the SPR is at 383 million for a total of 806 million Bbl. of refinery feedstock reserves. Our current refinery input is about 16 million Bbld (other than the export market, this is our only use of raw crude). If we lost all imports and shut-off all oil production, we could still theoretically run our refineries for 50 days. (We need heavier oils in the mix, however, as US shale oil is a lighter oil.) But we are producing 13.4 million Bbld. and only need to supplement the difference which our reserves could do for (270) days. Of course, 62% (4.4 million Bbl.) of our current imports come from Canada and risk no interruption. That heavy bitumen more than covers the production/consumption differential and is the grade needed to blend with shale oil. The US only gets 1.15 million Bbld. from OPEC countries with no single country providing more than 300k Bbld. We are also exporting about 4.0 million Bbld. and would cut that off if needed.

US oil and gas producers have allowed us to be less and less dependent on foreign sources of oil with record domestic production. And the Department of Energy continues to buy crude to replace previous SPR sales. The data shows we are in a good situation even if deliveries out of the Middle East are disrupted. In that event, prices would rise because we are part of a global market. But, supplies in the US would be secure.

Source: https://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbblpd_m.htm