National Oil Reserves Hit Lows Not Seen Since 1984


Are our current energy resources sufficient enough to protect the security of the United States? According to YCharts, the reserves were around 638M on January 20, 2021, when Biden took office. Six months ago, in March, the Biden administration committed to releasing barrels from the national oil reserve. The commitment combats surging prices at the pump. “The move arguably worked, as US gas prices have been consistently falling since June from an average high of more than $5 per gallon to just $3.71 per gallon today,” Markets Insider. According to some sources, it’s not the only drawdown on reserves from the Biden administration.

The use of US reserve brings the inventory to its lowest point since 1984 (Reuters). “The Biden administration still has 30 million barrels to drawdown to meet its commitment from the 180-million-barrel-drawdown-executive-order that President Biden put into place on March 31st of this year,” said Tim Snyder, Economist at Matador Economics.


●      1984: the last time the oil reserve was as low as it is now.

●      The oil reserve has lost seven available days of crude oil.

●      US gas prices have been consistently falling.


How does the national oil reserve impact security?

Snyder’s weekly publication breaks down the reserve into a formulation called “available days of crude oil”. It represents the number of days the US could sustain if production shut down and there was no crude oil to import”. On the day President Biden took office, there were 32.2 days of excess supply if everything shut down…the systemic drawdown of the country’s strategic reserves and available supply had dropped our number of excess supply to 25.94 days,” said Snyder. If the worst were to happen, the US would be down about a week’s worth of energy.

Steadying presence on the global market

America is a net exporter of energy. The Biden commitment to dip into reserves supports Europe during a precarious time of sanctioned energy. “Lobbyists for the US oil industry say that the global energy market would be worse off and have more volatility if it weren’t for the steadying presence of ‘American energy leadership,’” Business Insider.

The diminished barrels remain a significant concern. A lot could happen in a week. There are signs of changing tides. Multiple sources predict the drawdown commitment will end in October as planned (Markets Insider, Reuters). As prices dip to comparable in January, the Biden administration is weighing the option to replenish the reserve (Bloomberg).

Sorry, refills aren’t free.

“The energy resources we need to complete the recovery from the pandemic and to fully defend this country from others have been severely diminished. Our national security is at stake here, and our numbers are going in the wrong direction,” said Snyder. Replenishing the reserve is a logical response to concerns about security. No one feels good right after tapping their rainy day savings. But of course, every action has a ripple effect. While a significant commitment to purchase barrels would ease concerns about national security, it would likely set a new floor in the oil market.

Follow us on social media for the latest updates in B2B!


Thanksgiving holiday weekend
Thanksgiving Holiday Weekend Proved the Omnichannel Customer Has Fully Matured
December 2, 2022

Now widely reported, last weekend’s Black Friday and Cyber Monday sales were record-breaking on all accounts. Nearly 200 million customers hit physical retail stores over the Thanksgiving holiday weekend according to NRF, a feat all of its own and a validation of the brick & mortar store in an age of omnichannel sales strategy. […]

Read More
travel and hospitality
Consumers Seek More Value from Travel and Hospitality
December 2, 2022

A recent report from PwC suggests that revenue for hotels will continue to go up over the coming months. This is great news for hoteliers who survived the 2020 pandemic and are looking to recoup costs. What’s more, studies also suggest that customers are happy to pay for these increased prices, even at inflated rates. […]

Read More
Colorado healthcare incentives
Are Colorado’s Crafty Healthcare Incentives an Effective Strategy to Lower State Care Costs?
December 2, 2022

Colorado has some of the most expensive healthcare in the U.S., which already spends more than any other country on administering healthcare. Some studies place it in the top half of most expensive states for care in the U.S., while others place it in the top 10. In 2018, for example, Colorado’s average price per […]

Read More