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Bullboard - Stock Discussion Forum Baytex Energy Corp T.BTE

Alternate Symbol(s):  BTE

Baytex Energy Corp. is a Canada-based energy company. The Company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Its crude oil and natural gas operations are organized into three main operating areas: Light Oil USA (Eagle Ford), Light Oil Canada (Pembina Duvernay... see more

TSX:BTE - Post Discussion

Baytex Energy Corp > The SPR - a history; quick facts and other stuff
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Post by 2021Gamble on Jan 13, 2023 6:54am

The SPR - a history; quick facts and other stuff

If you are wondering about the SPR, and like what @red2000 just posted (the article from Oilprice.com), the following might just fill in some of the missing pieces of info


https://www.energy.gov/ceser/spr-quick-facts

The Strategic Petroleum Reserve is a U.S. Government complex of four sites with deep underground storage caverns created in salt domes along the Texas and Louisiana Gulf Coasts. 

Current inventoryClick to open inventory update window

Highest inventory -  The SPR was filled to its then 727 million barrel authorized storage capacity on December 27, 2009; the inventory of 726.6 million barrels was the highest ever held in the SPR.

Previous Inventory Milestones

  • 2008.  Prior to Hurricane Gustav coming ashore on September 1, 2008, the SPR had reached 707.21 million barrels, the highest level ever held up until that date.  A series of emergency exchanges conducted after Hurricane Gustav, followed shortly thereafter by Hurricane Ike, reduced the level by 5.4 million barrels.
  • 2005.  Prior to the 2008 hurricane releases, the former record had been reached in late August 2005, just days before Hurricane Katrina hit the Gulf Coast.  Hurricane Katrina emergency releases of both crude oil sales and exchanges (loans) totaled 20.8 million barrels.
  • 1977.  First oil was delivered to the newly constructed SPR, 412,000 barrels of light sweet crude. 

 Crude Oil Inventory by Site  (as of November 30, 2022)

  • Bryan Mound - contains 168.2 MMB in 18 caverns -  66.7 MMB sweet and  101.5 MMB sour
  • Big Hill - contains 60 MMB in 14 caverns -  39.7 MMB sweet and 20.3 MMB sour
  • West Hackberry - contains 112.1 MMB in 21 caverns -  72.8 MMB sweet and 39.3 MMB sour
  • Bayou Choctaw - contains  34.5 MMB in 6 caverns - 1.1 MMB sweet and  33.4 MMB sour

Current authorized storage capacity - 714 million barrels

Fill status -  The SPR completed fill on December 27, 2009 with a cargo that arrived and began to unload on Christmas Day.  The cargo was 493,000 barrels of Saharan Blend, a light sweet crude that was delivered to the Bryan Mound site.  A sale and drawdown in 2011 reduced the inventory to 695.9 million barrels. 

Current days of import protection in SPR - At the end of CY 2021 (as of December 31, 2021), the SPR’s crude oil inventory was 594.7 MMbbl.  This is equivalent to approximately 1,206 days of supply of total U.S. petroleum net imports.

International Energy Agency requirement - 90 days of import protection (both public and private stocks).  In past years, the United States has met its  commitment with a combination of SPR stocks and industry stocks.  The days of import protection may vary based on actual net U.S. petroleum imports and the inventory level of the SPR. 

Average price paid for oil in the Reserve - $29.70 per barrel

Drawdown Capability

  • Maximum nominal drawdown capability - 4.4 million barrels per day
  • Time for oil to enter U.S. market - 13 days from Presidential decision

Summary List of Historical Releasesclick here

Past Sales

  • FY 2020 Mandated Sales: 9.85 million barrels
  • FY 2019 SPR Modernization Sale: 4.2 million barrels
  • FY 2019 Mandated Sales: 10.87 million barrels
  • FY 2018 SPR Modernization Sale: 4.74 million barrels
  • FY 2018 Mandated Sales: 14.17 million barrels
  • FY 2017 Mandated Sales: 10 million barrels
  • FY 2017 SPR Modernization Sale: 6.28 million barrels
  • 2014 - March: Test Sale - 5 million barrels
  • 2011 June: IEA Coordinated Release - 30,640,000 barrels  
  • 2005 September: Hurricane Katrina Sale - 11 million barrels
  • 1996-97 October; January; April:  Total non-emergency sales - 28 million barrels
  • 1990/91 September, January: Desert Shield/Storm Sale - 21 million barrels
    (4 million in August 1990 test sale; 17 million in January 1991 Presidentially-ordered drawdown)
  • 1985 - November: Test Sale - 1.0 million barrels 

Past Exchanges

  • August 2017 - exchanged 5.2 million barrels of oil following Hurricane Harvey, delivered to Gulf Coast refineries as a result of much of the Gulf region's oil refining capabilities being shut down, resulting in fuel shortages.
  • Sept 2012  - exchanged 1 MMB with Marathon Oil following Hurricane Isaac due to disruptions to the commercial oil production, refining and distribution operations in the Gulf Coast.   
  • Sep/Oct 2008 - two test exchanges were conducted following Hurricanes Gustav and Ike totaling 5,389,000 barrels.  Deliveries were made to Marathon, Placid, ConocoPhillips, Citgo and Alon USA. 
  • June 2006 - exchanged 750 thousand barrels of sour crude with ConocoPhillips and Citgo due to the closure for several days of the Calcasieu Ship Channel to maritime traffic. The closure resulted from the release of a mixture of storm water and oil.  Action was taken to avert temporary shutdown of both refineries.   
  • January 2006 - exchanged 767 thousand barrels of sour crude with Total Petrochemicals USA due to closure of the Sabine Neches ship channel to deep-draft vessels after a  barge accident in the channel.  Action was taken to avert temporary shutdown of the refinery.
  • Sep/Oct 2005- exchanged 9.8 million barrels of sweet and sour crude due to disruptions in Gulf of Mexico production and damage to terminals, pipelines and refineries caused by Hurricane Katrina.
  • Sep/Nov 2004 - exchanged 5.4 million barrels of sweet crude due to disruptions in the Gulf of Mexico caused by Hurricane Ivan.
  • Oct 2002 - exchanged 98,000 barrels with Shell Pipeline Co. to secure Capline storage tanks in advance of Hurricane Lili.
  • Sep/Oct 2000 - exchanged 30 million barrels in response to concern over low distillate levels in Northeast. 
  • July/August 2000 - exchanged 2.8 million barrels of crude oil for 1st-year tank storage and stocks for 2 million barrel Northeast Home Heating Oil Reserve.
  • June 2000 - exchanged 500,000 barrels each with CITGO and Conoco, due to blockage of the ship channel that allowed incoming crude oil shipments to those refineries. Action taken in order to avert temporary shutdown of both refineries. 
  • August 1998 - exchanged 11 million barrels of lower quality Maya crude in SPR with PEMEX for 8.5 million of higher quality crude (more suitable for U.S. refineries)
  • April/May 1996 - exchanged 900,000 barrels of SPR crude with ARCO to resolve company's pipeline blockage problem.   

Investment to date - About $25.7 billion ($5 billion for facilities; $20.7 billion for crude oil).

Comment by red2000 on Jan 13, 2023 1:15pm
Thank's 2021Gamble ! Very informative ! After reading all numbers, why US Gov want to refill the SPR as high as it was in dec 2021 : 594,7 MMbbl ! It's a none sense for me ! They made a lot of money during 2022... 594,7 - 374,7 (nov 2022) = 220MMbbl sold at 95,70$ - 29,70$ = 66$ per barrels === 14,5B$. What they going to do with this money ! Finance CAPEX for US producers, cut taxes ...more  
Comment by dllscwbysfn on Jan 13, 2023 1:41pm
Highly unlikely that they fill any of the SPR. They are at their max debt level already.U.S. Will Hit Debt Limit Jan. 19, Yellen Tells Congress - The New York Times (nytimes.com) 
Comment by riski on Jan 13, 2023 2:27pm
$14.5 B sounds like a lot, but it's not really that much for the USA which has a 23 trillion dollar economy and trillions of revenue and expenses every year. It works out to about $40 per person and amounts to a rounding error. The financial value in terms of inflation control and political value in terms of re-election for keeping the price of oil low is far more valuable than the profits ...more  
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