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!


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