U.S. Energy Secretary anticipates oil and gas rebound, says more oil headed to strategic reserves in Louisiana

[Tom Kirkman + 8,860]

Some potential good news, amidst the unrelenting barrage of hysteria from the Panic Agenda Energizer Bunny Media.

 

U.S. Energy Secretary anticipates oil and gas rebound, says more oil headed to strategic reserves in Louisiana

U.S. Energy Secretary Dan Brouillette is hopeful the re-opening of states across the country will give the oil and gas industry a much-needed boost, as gasoline usage dropped to its lowest level in decades during the coronavirus shutdown.

Brouillette said in an exclusive interview with WWL-TV Anchor and Investigative Reporter Katie Moore that he thinks the oil and gas economy will rebound rapidly. 

"Our own energy information administration, EIA, as we call it in the Department of Energy, shows a very strong third and fourth quarters of 2020. So, that's only a few short weeks away. That process is going to begin very, very quickly," Brouillette said.

The EIA found petroleum consumption dropped to its lowest level in decades in March. 

A recent study by an oil industry group found the oil industry employs nearly 45,000 people in Louisiana, a significant part of the state's economy.

Louisiana also houses two of the four strategic oil reserves in the United States. As the price of oil dropped, President Donald Trump instructed Energy to "fill them up".  ...

 

[Dan Clemmensen + 1,011]

On 5/20/2020 at 2:12 AM, Tom Kirkman said:

Some potential good news, amidst the unrelenting barrage of hysteria from the Panic Agenda Energizer Bunny Media.

 

U.S. Energy Secretary anticipates oil and gas rebound, says more oil headed to strategic reserves in Louisiana

U.S. Energy Secretary Dan Brouillette is hopeful the re-opening of states across the country will give the oil and gas industry a much-needed boost, as gasoline usage dropped to its lowest level in decades during the coronavirus shutdown.

Brouillette said in an exclusive interview with WWL-TV Anchor and Investigative Reporter Katie Moore that he thinks the oil and gas economy will rebound rapidly. 

"Our own energy information administration, EIA, as we call it in the Department of Energy, shows a very strong third and fourth quarters of 2020. So, that's only a few short weeks away. That process is going to begin very, very quickly," Brouillette said.

The EIA found petroleum consumption dropped to its lowest level in decades in March. 

A recent study by an oil industry group found the oil industry employs nearly 45,000 people in Louisiana, a significant part of the state's economy.

Louisiana also houses two of the four strategic oil reserves in the United States. As the price of oil dropped, President Donald Trump instructed Energy to "fill them up".  ...

 

It's great that we got lucky and purchased cheap oil this time. However, "Fill them up" is a dangerous policy. We have just learned that it's not just an oil reserve, it's also a storage capacity reserve. If it's already all the way full, then it cannot be used as a buffer if we have another storage crisis later this year.  At some point in the future, we will need to start selling some of this oil to regain the storage buffer, and this sale will keep prices depressed for longer. As long as the US remains a net exporter, the "storage reserve" function is more valuable than the "oil reserve" function. The government began drawing down the reserve earlier this decade because it is not needed as much when we are a net exporter. This will reverse again if we become a net importer again.