Global oil production is 100.6 MMBO per day

Posted on: October 19, 2022 at 12:19:36 CT

OPEC is cutting current production by 1.1 million so that's a little over 1% (OK so not quite the 1.4% I earlier quoted but still > 1%). But again, that's not the issue. When oil supplies are tight, that level of production cut does make a difference in price.

Domestic energy policy has nothing to do with the current oil crunch. It's a global supply chain issue resulting the lack of demand hitting the petroleum industry during covid. US production, reliant on unconventional oil requiring very high well counts, was impacted particularly hard. US production is ramping back up and should be at or near pre-covid levels in the not-too-distant future

The intended purpose of the strategic petroleum reserve is provided on the links above. While I agree that it should not be utilized as a routine reaction to high oil prices, trying to control 40 year high inflation by not letting oil prices climb too high probably meets the original intent of creating the reserve.

Edited by KC rules at 12:46:38 on 10/19/22