What Another 15 Million Barrel Tranche Means for Oil and Gas Prices


According to Washington Post, the United States is regarded as the world’s oil barrel of last resort, but what does it mean for hundreds of millions of Americans when depletion becomes an addressable concern?

On October 19, “the Biden administration announces another 15-million-barrel tranche to come out of the Strategic Petroleum Reserve (SPR) for his planned depletion in the United States supply,” said Tim Snyder, Economist for Matador Economics.

Let’s talk indexes – what are the numbers?

With 180 million barrels already being disbursed back in March on top of a 50-million-barrel tranche pulled from the SPR, back in November of last year.

Accumulating a total of 245 million barrels removed from the world’s largest emergency reserve, “represents 40% of the crude oil that President Biden had in the SPR when he took office. That number was 592 million barrels,” Snyder said.

According to Y Charts, the reserves were around 638 million Barrels on January 20, 2021, and down to 592 million barrels of crude oil as of January last year. Current pricing for crude oil per barrel sits at $86.12 with an indicator to fluctuate considering the volatility of the present West Texas Intermediate oil market (YCharts).

A drop in the barrel

The administration is acting against the pump, attempting to lower the price of gasoline for consumers, “but these 15 million barrels are just a drop in the bucket,” Snyder stated.

The United States consumes 8.80 million barrels per day (Energy Information Administration). Snyder anticipates a 50% depletion rate in the 350-million-barrel range.

Forecast for gas – what is the real price?

The U.S. now sits at the lowest levels of crude oil in the SPR since the mid-1980s (The Hills). Some suspect that Saudi Arabia and OPEC’s hold on production cuts was for political gain.

“Sadly, this whole economic mess and the deeply entrenched inflation that is a result of this bad policy was completely avoidable,” Snyder stated.

Key Points:

  • A drop in the bucket – Biden administration announces another 15-million-barrel tranche
  • West Texas Intermediate crude oil is trading at $85.32 per barrel
  • Saudi Arabia and OPEC’s hold on production cuts

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



Why Hardwired Buttons Outperform Wearable Devices in School Safety
July 15, 2024

In a recent episode of “Secured” with hosts Mike Matranga and Mike Monsive, the conversation revolved around the evolution of safety systems in schools and wearable devices. The discussion highlighted the simplicity of understanding effective systems, using Buc-ee’s gas stations’ success, known for their clean restrooms, as an analogy for consistency and excellence. Matranga…

Read More
AIS targets
Fact or Fiction: Do All Boats Show as AIS Targets on Radar?
July 12, 2024

In this latest episode of Icom’s “Fact or Fiction,” Captain Kelly Gordon tackles a common misconception about marine radar systems: Do all boats show up on radar as AIS (Automatic Identification System) targets? Many believe every vessel on the water appears as those distinctive little triangles on radar screens, representing AIS targets. However, Captain…

Read More
AI in content marketing
Generative AI in Content Marketing: Why Creativity & Authenticity Will Make it Work
July 11, 2024

Will 2024 be known as the year AI made waves in content marketing? It sure seems so, with recent AI-driven ads from Toys R Us and Under Armour generating significant buzz online. Not just this: Despite having no official ties to the brand, a mock Volvo ad created entirely by AI has also gone…

Read More
Hiring Made Human: Hiring When You’re a Start-Up
July 11, 2024

The challenges of hiring for a startup have become more pronounced these days than ever. With technological advancements and evolving market demands, startups must be agile and strategic in their hiring practices to ensure success. According to some studies, nearly 90 percent of startups fail, with a significant factor being the inability to attract…

Read More