U.S. Strategic Petroleum Reserve Falls To 35-Year Low
The United States’ Strategic Petroleum Reserve (SPR) now has only 453.1 million barrels in its inventory, following another significant drop in the past week that puts the emergency reserve at a low not seen in three and a half decades, Reuters reports, citing the Department of Energy. In the week ending August 19th, the SPR saw another draw of 8.1 million barrels, following smaller releases in the weeks leading up to that. In March, the Biden administration authorized the release of 1 million bpd from the SPR over a period of six months in a bid to lower oil prices and to potentially boost domestic production through contracts with companies to purchase future oil at fixed prices. The SPR releases are a response to the disruption of global oil markets caused by Russia’s invasion of Ukraine and subsequent Western sanctions that have led to soaring oil and gas prices. The final plan called for a total release of 180 million barrels of crude from the SPR to counter the inexorable increase in oil prices amid a tight market. The record-high release of crude oil from the SPR will end this fall. In addition to the lowest inventory levels in the SPR since 1985, last Wednesday, the Energy Information Administration (EIA) estimated that crude oil inventories (excluding the SPR) had fallen by 7.1 million barrels. For that week, U.S. crude oil inventories, excluding those in the SPR, were at only 425 million barrels, or 6% below the five year average. The largest sale from the SPR was announced on August 11, when the Department of Energy said that nine companies would buy 20 million barrels. According to the Institute of Energy Research, the SPR is expected to shrink to a 40-year low by the end of October, with inventories then at 358 million barrels, compared to 621 million barrels a year ago.
UP to Promote biofuel production
Uttar Pradesh Chief Minister Yogi Adityanath has directed concerned officials to prepare a bioenergy policy that will promote biofuel production in the state. Yogi said that as per the vision of Prime Minister Narendra Modi, efforts to promote bioenergy projects, like compressed biogas (CBG), biocoal, ethanol and biodiesel, have yielded positive results. Till now, production has commenced in two units of biocoal while one unit of compressed biogas has been completed in the month of June, he said. According to state government spokesman, the Chief Minister said that planned efforts should be made to establish at least one biofuel unit in all 75 districts, while in the next phase, it should be extended to every tehsil. “Vacant land in village society /revenue land/sugar mill premises should be used for setting up biofuel plants and for storage of biomass,” he said. Biofuel will help meet energy needs and aid in generating additional income and also give employment, Yogi said, adding that the state will have to develop the biomass supply chain for future needs. “There is a need to promote the use of biofuels in the field of energy and transportation. Biomass pellets should be used in power generation plants. Concerted efforts are needed in this direction.” Explaining the importance of biofuels, the Chief Minister said that promoting biofuels will be helpful in reducing dependence on crude oil and promoting a cleaner environment. He further added that the use of biofuel will reduce carbon emissions which is a cause of worry for the entire world. “In such a situation, Uttar Pradesh has an opportunity to present a model. A new bioenergy policy should be formulated to make the state realize its immense potential,” the Chief Minister said. He also said that efforts should be made to achieve the target of producing 500 tonnes of CBG per day of compressed gas in the next five years. “The industry must be consulted while formula ting a new bioenergy policy. Understand the needs of the investing entities/companies. Taking the opinion of all the parties, a new policy should be prepared after comprehensive consultation,” he directed officials.