I am indebted to my new friend who is an energy expert ,and currently working in the Persian Gulf, for explaining why the US is facing a very serious risk of a domestic energy crisis.
I posted oil flow information after Larry's post prior to this one. His additional information in this post has increased my knowledge. I still had some 'put it all together' questions. I just found a very good, clear, and not lengthy article that has helped me to do that. Here is the opening:
"The United States is often seen as one of the world’s largest oil producers. Despite the large output (around 13.2 million barrels of crude oil a day)—the U.S. skews heavily toward light sweet crude, which is easier and cheaper to refine. This is great for certain products like gasoline and diesel, but the issue is that U.S. refineries were built decades ago to process a much heavier, sourer crude oil."
So the US produces lots lof light sweet crude, but the refineries it has are set up to process heavy sour crude. It takes a lot of time, paperwork and domestic diplomacy to build more refineries.
By opening the spigot on the US oil reserves--SPR--DJT aimed to keep gasoline prices down to keep the populace satisfied, and to manipulate the stock market.
Now he has depleted the buffer we had for emergencies, he has thrown a monkey wrench into the movement of oil for the entire globe, and I daresay encouraged more pirating of sailing tankers.
France just seized a tanker named Tagor in the Atlantic. The operation was conducted with support from the UK.
Or what king, going to make war against another king, sitteth not down first, and consulteth whether he be able with ten thousand to meet him that cometh against him with twenty thousand? Or else, while the other is yet a great way off, he sendeth an ambassage, and desireth conditions of peace.
Luke 14:31-32 KJV
For by wise counsel thou shalt make thy war: and in multitude of counsellors there is safety.
Proverbs 24:6 KJV
A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.
Another brilliant but chilling roundup of the folly and fascism of DJT attacking sovereign Iran.
DJT didn't 'just' blow up Iran's military and infrastructure, he/ it blew up the global economy and supply chains, that can't function without liquid hydrocarbons.
Just like in the climate system, there is a lag between cause and effect, that lag in supply chain breakdown is fast running out as is the 'cushion' of reserves. Larry makes the point that the military will have first claim on reserves, that means the food will run out in public supermarkets and gas stations long before the on base supermarkets have empty shelves.
When measuring the 'cushion' of fuel in tanks and pipelines many forget that at the bottom of many of the tanks the lower metre can be sludge, giving a false impression of the real reserve.
Additionally wells that have been "Shut In" often never return to pre shut in pressure.
"The geography makes it worse." Imagine how this Kiwi feels when living at the bottom of the South Pacific on an island chain surrounded by vast oceans without so much as one oil refinery.
Iran has won the tactical component of this war due to decades of sanctions that have built incredible resilience, combined having the income to prepared for what the government saw as an inevitable "Regime Change War" that the empire of chaos would and has launched.
To date Iran has only defended itself and its allies in the region, if I were in the resistance in West Asia, I would be advocating for attacking the empire at home by mobilising a 'Fifth Column," stand by for that prediction to run its course.
Added to my three-year-old blog post titled: " Global Peak Oil Remains an Existential Threat."
I don’t see many people factoring into the dynamics of how destructive ‘Shut-ins’ can be to future well productivity.
Often the wells don’t return to their previous vitality, it’s complex.
“Some Russian producers even say they would prefer burning unsold oil to shutting down wells. In addition, certain land use contracts require oil companies to pump the oil, under penalty of seeing their drilling rights transferred to their competitors!”
Shutting Down Oil Wells, a Risky and Expensive Option – resilience.
Venezuela has doubled oil exports to 1.5 B I L L I O N b/d (barrels per day). Year to date, Venezuela’s 2026 oil sales are 2X 2024 sales.
The U.S. has received 44.7% of Venezuelan crude exports in 2026.
As many as 339,000 B I L L I O N barrels per day enter the U.S. from Venezuela on peak weeks.
Venezuela is offloading at ports in Pascagoula, Mississippi, and in Texas. These plants have the coking capacity to process Venezuela's thick, heavy, high-sulfur Merey crude.
The U.S. is purposely strangling oil exports from West Asia
The U.S. is building up oil reserves, manipulating oil markets and attempting to weaken West Asia, Russia and China by strangling West Asian oil exports.
It has always be my understanding that to balance its market, the US was importing gasoline from Europe and exporting its excess diesel to it. Is it still the case?
I posted oil flow information after Larry's post prior to this one. His additional information in this post has increased my knowledge. I still had some 'put it all together' questions. I just found a very good, clear, and not lengthy article that has helped me to do that. Here is the opening:
"The United States is often seen as one of the world’s largest oil producers. Despite the large output (around 13.2 million barrels of crude oil a day)—the U.S. skews heavily toward light sweet crude, which is easier and cheaper to refine. This is great for certain products like gasoline and diesel, but the issue is that U.S. refineries were built decades ago to process a much heavier, sourer crude oil."
So the US produces lots lof light sweet crude, but the refineries it has are set up to process heavy sour crude. It takes a lot of time, paperwork and domestic diplomacy to build more refineries.
https://www.fuelstreamservices.com/why-the-u-s-cant-use-the-oil-it-produces/
By opening the spigot on the US oil reserves--SPR--DJT aimed to keep gasoline prices down to keep the populace satisfied, and to manipulate the stock market.
Now he has depleted the buffer we had for emergencies, he has thrown a monkey wrench into the movement of oil for the entire globe, and I daresay encouraged more pirating of sailing tankers.
France just seized a tanker named Tagor in the Atlantic. The operation was conducted with support from the UK.
😀Thanks Big😃
😀Quit Excellent Reportage😃
did you mean quite?
Ya gotta take a person by what they mean, not what they say. LOL
Or what king, going to make war against another king, sitteth not down first, and consulteth whether he be able with ten thousand to meet him that cometh against him with twenty thousand? Or else, while the other is yet a great way off, he sendeth an ambassage, and desireth conditions of peace.
Luke 14:31-32 KJV
For by wise counsel thou shalt make thy war: and in multitude of counsellors there is safety.
Proverbs 24:6 KJV
A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.
Proverbs 22:3 KJV
Another brilliant but chilling roundup of the folly and fascism of DJT attacking sovereign Iran.
DJT didn't 'just' blow up Iran's military and infrastructure, he/ it blew up the global economy and supply chains, that can't function without liquid hydrocarbons.
Just like in the climate system, there is a lag between cause and effect, that lag in supply chain breakdown is fast running out as is the 'cushion' of reserves. Larry makes the point that the military will have first claim on reserves, that means the food will run out in public supermarkets and gas stations long before the on base supermarkets have empty shelves.
When measuring the 'cushion' of fuel in tanks and pipelines many forget that at the bottom of many of the tanks the lower metre can be sludge, giving a false impression of the real reserve.
Additionally wells that have been "Shut In" often never return to pre shut in pressure.
"The geography makes it worse." Imagine how this Kiwi feels when living at the bottom of the South Pacific on an island chain surrounded by vast oceans without so much as one oil refinery.
Iran has won the tactical component of this war due to decades of sanctions that have built incredible resilience, combined having the income to prepared for what the government saw as an inevitable "Regime Change War" that the empire of chaos would and has launched.
To date Iran has only defended itself and its allies in the region, if I were in the resistance in West Asia, I would be advocating for attacking the empire at home by mobilising a 'Fifth Column," stand by for that prediction to run its course.
Added to my three-year-old blog post titled: " Global Peak Oil Remains an Existential Threat."
https://kevinhester.live/2023/05/17/global-peak-oil-remains-an-existential-threat/
I don’t see many people factoring into the dynamics of how destructive ‘Shut-ins’ can be to future well productivity.
Often the wells don’t return to their previous vitality, it’s complex.
“Some Russian producers even say they would prefer burning unsold oil to shutting down wells. In addition, certain land use contracts require oil companies to pump the oil, under penalty of seeing their drilling rights transferred to their competitors!”
Shutting Down Oil Wells, a Risky and Expensive Option – resilience.
https://www.resilience.org/stories/2020-05-28/shutting-down-oil-wells-a-risky-and-expensive-option/?fbclid=IwY2xjawSsB3xleHRuA2FlbQIxMABicmlkETFhSUZKSnhwYkFIeTV0U1gwc3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHmTGJ1KnRR_So7opgsRFv-rta8l2giOAtdRviAr-PT43yjfA85EUm79okFaV_aem_iOVQRLfXBKEj8isbFdHKcw
Venezuela has doubled oil exports to 1.5 B I L L I O N b/d (barrels per day). Year to date, Venezuela’s 2026 oil sales are 2X 2024 sales.
The U.S. has received 44.7% of Venezuelan crude exports in 2026.
As many as 339,000 B I L L I O N barrels per day enter the U.S. from Venezuela on peak weeks.
Venezuela is offloading at ports in Pascagoula, Mississippi, and in Texas. These plants have the coking capacity to process Venezuela's thick, heavy, high-sulfur Merey crude.
The U.S. is purposely strangling oil exports from West Asia
The U.S. is building up oil reserves, manipulating oil markets and attempting to weaken West Asia, Russia and China by strangling West Asian oil exports.
India received 17.8% Venezuelan crude.
Great, as always, Larry! We're all indebted to you
Larry, given negative downside that war with Iran inescapably entailed, do you think
Do you think Mr. Trump was fully and adequately briefed, or did he permit the Israelis to lead him down the primrose path.
It has always be my understanding that to balance its market, the US was importing gasoline from Europe and exporting its excess diesel to it. Is it still the case?