If the current administration were to write the U.S. tight oil sector a blank check it could not bring on significantly more oil supply until August, six months from now.

In the meantime, the SPR is dangerously low with only a portion of 414 MM BO actually usable.

The current administration has only added 20 MM BO to the SPR in the 13 months it's been in charge, in spite of average WTI prices for the period of $64.13 per BO.

oilprice.com

Crude oil inventories in the United States increased by 16 million barrels during the week ending February 20, according to new data from the U.S. Energy Information Administration (EIA) released on Wednesday

Inventories are up and down, currently up.

Oil this morning is to a little south of $67, up $9 per BO in the past 90 days. Most of this is based on fear of geopolitical escalations with Iran; let's be clear, POTUS is not going to stand for oil prices above $65, at the highest. He wants oil prices in the low 50s and does not care what it does to the domestic oil industry in America.

Vance yesterday told his audience in Wisconsin that oil prices were way down thanks to Drill Baby, Drill. Ain't buyin' THAT, sorry. The small incremental increases in U.S. production the past year are some due to longer laterals in the Permian, that decline 90% in 3 years, and GOM increases that are coming online after being drilled three and four years ago. Otherwise, OPEC is to thank, or blame, for lower oil prices.

My "party" is absolutely full of ca-ca…

I don't buy the quote, save to say an expansionist monetary policy and cheaper capital did indeed lead to the entire shale oil phenomena, beginning 2014. For the record, some $300 B of monetary losses have occurred within the sector, to date, and there is another $200 B of debt, at least, still outstanding in the U.S. shale sector. It was built on and still relies on...debt.

14 B barrels of Permian tight oil have been exported to foreign countries, below costs. If it was exported at costs, or at a profit, the shale oil industry would be out of debt, right? Debt is NOT…

In short: will water crises lead to policies which further inflate the costs of, and limit the suitable locations for oil production?

My understanding is that increasing amounts of produced water with limited ability to recycle must be disposed of and Texas gets to deal with it.

Between decreasing water availability, an oil industry in deep debt while forcing taxpayers to clean after itself, while water shortages in Texas are expected in 5 years, this seems to me like an economical and ecological PR nightmare waiting to happen.

www.texastribune.org

The state’s water supply faces numerous threats. And by one estimate, the state’s municipal supply will not meet demand by 2030 if there’s a severe drought and no water solutions are implemented.

https://www.houstonchronicle.com/business/energy/article/zombie-wells-toxic-waste-taxpayer-cost-18001336.php

Given this, do we have precedent for the restriction of industrial water use impacting oil production, and their economic implications?

What is there to be learned from this quote about the Strategic Petroleum Reserve (SPR) and our nation's energy security from the Heritage Foundation press release, above?

• Its author was born in Great Britain, is an economist, not a U.S. "energy (oil & natural gas) expert" and works for a Republican think tank.

• Since President's Biden's disastrous draining of the SPR for political reasons, President Trump has managed to "refill" the SPR by just 18.65 MM BO the past 11 months...

  ...in spite of the average price of WTI in America being less than $63 in 2025, the lowest in three and one half (3 1/2) years...