RE:RE:RE:RE:RE:RE:RE:RE:RE:For those who care...
"Having sold the SPR release for $96 per barrel, the present low price affords the US the opportunity to secure a good deal on the repurchase price. I would imagine the process to refill is underway. Whether or not the oil comes from Canada, or elsewhere, remains to be seen. My understanding is that the US will solicit bids."
It was release of SPR oil to substitute for missing supply that forced prices down. Replenishing the reserve will call on a supply that is not there. Unlikely the SPR will ever be replenished and if replenished it will be at vastly elevated prices and certainly not lower $70/bbl prices, a U.S. administration deception to allay criticism of releases or wishful thinking at best.
Release of the SPR did not change fundamental factors behind an oil supply deficit running for several years now - declining shale production, absence of OPEC + spare capacity, reduced Russian production, diversion of more Russian & Gulf oil East, declining capital investment over last 5 years, Bank and funds ESG curtailing fossil fuel investments, declining discovery of more oil, rising risk to making long term capital investments in drilling, Western oil investments fleeing sanctioned Iran, Venezuela, and Russia and increasing technical difficulties with trying to squeeze more oil out of the ground.
Demand side is increasing. Renewables failure to fill supply deficit. Electric vehicles adding to fossil fuel generated electricity. Fossil fuel increase to extract minerals for EV's and build out of electrical systems. Consumer and coporate inertia to dial back consumption. Global capitalist economic competition consuming ever more fossil fuel - China, India, Indonesia, etc. Resource nationalism curbing exports to keep oil at home, failure to build out neclear generation, Increasing stock of buildings requiring more energy consumption.
In the future, the world is going to have to consider underground mining to get more oil that drilling, surface mining, fracking, etc., is capable of only getting a portion of.
On average, the recovery factor after primary and secondary oil recovery operations is between 35 and 45%. To get the remaining 55 to 65 % will require underground mining like coal, salt, and potash mining.