Baytex Energy Corp T.BTE

To avoid

[Moemoney42]

damaging storage facilities these SPR releases will have to be stopped before too long.. and they must be replaced asap so not to damage the storage caverns permanently.. so no matter where the price of crude is its going to have to be replaced to maintain infrastucture IMHO.. 
So maybe they can replace some of it with discounted WCS but that could be a challange too.? Now if they hadn't kiboshed the Keystone XL the US could have had an easy fix.. but alas we all know that story don't we.. ;-)

[HighOctane89]

The SPR caverns were never meant (or designed) to act like a gas station . Oil can sit in those caverns for years but cycle the contents with water several times and the cavern will be damaged . I'm sure some engineers are screaming to get the water out of those caverns before its too late . The releases have kept gas prices down which has kept consumers buying that cheaper product but now

[GambinoB]

Does anyone have information on how many times the SPR can be released and refilled. Is it limitless or does each draw reduce the viability?

[HighOctane89]

From my understanding they were designed to cycle 5 times before the cavern would be damaged , they were never designed for the multiple 1/2 or 1/4 volume depletion and refilling 

[Hightowntrader]

And originally designed for a 25 year life-span, but we're already double that.

[marketsense]

In addition,  it has been mentioned many times but it bears repeating.  The supply  crunch will indeed occur at some point because of the chronic lack of refining capacity and other vital infrastructure. You can drill and produce all you want but you can't increase refining capacity so you have a choke point.  This applies to all producers who are well aware of storage

[HighOctane89]

Good assessment marketsense , refining limitations are a big problem but what isn't ? Under investment in production and energy infrastructure due to government policy has now come full circle . Production and capacity are both down with no alternative either planned or available , it all comes down to inventory , supply and demand . Be it winter temperatures or China coming out