Lea County, New Mexico
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Draining the SPR is a grave mistake, indeed. It puts our great nation at considerable security risk.
Draining the SPR is, however, no worse than exporting 75+% of all Permian HZ tight oil production to foreign countries, much of it below other world oil price postings.
In fact, exports are far worse.
To imply that the US does not need a Strategic Petroleum Reserve because of tight oil abundance is essentially a lie proglomated by the tight oil industry itself in need of YOUR money to function. We export 1.3 billion barrels of Permian tight oil every year. Since the export ban was lifted in 2015 we have exported almost two full years of total US consumption. That is oil we will need to help see us through a smooth, economic transition to renewable transportation fuel down the road. That is oil we need NOW to ensure energy security. Exporting oil to for instance Singapore, or Rotterdam, does nothing to enhance OUR country's energy security. That too is a lie.
Berman chart on the rate of decline in the Bakken, Eagle Ford and Niobrara compared to the rate on increase in the Permian. All of America's oil eggs now lie in the Permian Basin basket; its deceleration will look far worse than its acceleration.
Meeting contractual obligations to deliver oil for exports leads to over drilling core areas in the Permian, well interference, pressure depletion, increasing gas production that often requires more flaring, excessive produced water injection that causes earthquakes (that keep getting bigger!) and more drainage of limited groundwater in an arid part of West Texas and New Mexico as frac source water. Oil exports have led to stress on the supply and service industry and has caused drilling and completion costs for tight oil producers to sky rocket, hurting economics and reserve replacement ratios necessary for lousy wells that decline 85% the first 32 months of production life. Oil exports are leading to more debt by the tight oil industry, not less; this current round of CAPEX creation is simply being done thru bonds. Debt is debt, however it exists. Our nation is choking on debt.
Oil exports from the United States are helping deplete the Permian Basin much faster than if that oil was extracted at rates commensurate with domestic usage in America. Once that oil leaves the Gulf Coast, its gone, never to be seen again. Those people that import LTO will never pay us back in kind and, in spite of the political rhetoric, will offer no substantive help to the United States as an ally, or important trade partner. Because American refineries cannot absorb more that 4.8-5.0MM BOPD of tight oil does not mean we should keep drilling the shit for the sake of Singapore; that is valuable oil and natural gas our country WILL be able to use someday, very soon.
Crude oil exports are an atrocity on future of our country and its long term energy security. The "tactic" of exports is to make the tight oil sector money, now, and has nothing to do with long term strategy. No one can legitimately say draining the SPR is bad, but ignore exporting the last of our country's oil resources. Or worse, say that exports are good for America. Oh, the API, IPAA, TXOGA, and others DO say that, all the time, but remember who pays for them to exist, and why.