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United States might improve rate of replenishing oil reserve, Energy Secretary Granholm states

The U.S. might hasten the rate of renewing the Strategic Petroleum Reserve as maintenance on the stockpile is completed by the end of the year, Energy Secretary Jennifer Granholm informed on Tuesday.

Granholm said she thinks the global oil market is well-supplied and that she does not anticipate a huge increase in oil and gas rates in the next short while.

The Energy Department this year has been purchasing about 3 million barrels of oil each month for the Strategic Petroleum Reserve after selling 180 million barrels in 2022 following Russia's invasion of Ukraine.

President Joe Biden, a Democrat, directed the sale, the largest ever from the SPR, in an effort to manage gas costs after the invasion. However the move sank levels in the reserve to the most affordable in 40 years, causing criticism from Republicans that it left the U.S. emergency situation oil buffer too thin.

It might pick up more than that, Granholm told in an interview in Washington, about the 3 million barrel per month speed. She said that a couple of the SPR's 4 sites on the coasts of Texas and Louisiana have actually remained in maintenance.

All 4 sites will be back up by the end of the year, so one could think of that speed would pick up, depending upon the market, she said.

The U.S. has redeemed about 38.6 million barrels and canceled congressionally mandated sales of 140 million barrels through 2027. The administration has stated it wishes to keep buying oil as long as the cost remains below $80 a barrel .

We want to continue to take advantage of the marketplace when it is right for the taxpayers, Granholm stated.

The Organization of Petroleum Exporting Countries agreed on Sunday to extend production cuts into 2025 amid lukewarm demand growth. However Granholm was not concerned the agreement could result in higher oil costs. It appears that they have backed off a bit from their objectives of getting much higher oil rates she stated about OPEC. And so that is motivating.

LNG PAUSE

The Biden administration intends to finalize an ecological and financial evaluation of its liquefied natural gas exports by the end of the very first quarter of 2025, following a. duration of public remark, Granholm said.

She did not anticipate the pause to have any impact on U.S. competitiveness in the worldwide LNG market, provided U.S. exporters. are only shipping a portion of what has actually currently been. licensed.

The oil market, Republican legislators, and governmental. prospect Donald Trump have actually berated the Biden administration. for its choice previously this year to pause LNG export. allowing.

It does not stop briefly anything that's already happening and. currently authorized, Granholm stated.

The U.S. is the world's top LNG exporter at around 14. billion cubic feet daily. Granholm said the administration had. licensed 48 billion cubic feet per day of LNG exports.

OIL COMPANY CONSOLIDATION

Granholm said she was stressed over the recent flurry of. mergers and acquisitions in the U.S. oil market including. business like Exxon Chevron and ConocoPhillips. stating they ran the risk of hurting customers.

I'm always worried about combination in any market and. what the effects for real individuals are on that, and the antitrust. problems associated. We've got to be vigorous on that throughout. Competition is great. And so combination is anti-competition,. frequently. And I think that we must all be concerned about that.

Asked if she supported efforts by Democratic legislators to. persuade Chief law officer Merrick Garland to release an. investigation into the oil market, Granholm stated: I believe. it depends on Merrick Garland whether he takes this up. As a. Cabinet member I respect his decision.

As the U.S. and allies want to decrease reliance on fossil. fuels and enhance output of electrical vehicles and sustainable power,. Granholm stated the creation of a strategic resilience reserve. to stock vital minerals like graphite and lithium is a. excellent idea. The reserve could secure versus dependence on. China for such minerals. The administration is talking with. allies and need to have announcements on crucial minerals soon,. Granholm said.

(source: Reuters)