Subject: SPR Update
From: [email-masked]
To: [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Tue, 13 Nov 2001 08:31:00 -0800 (PST)

SPR implications are, in my opinion (given the available information) as follows:

SPR has  592 MMB of crude already in ground or in futures contracts.

Of that 592 MMB, 47 MMB are already purchased, or are owed to the SPR with delivery dates focused in the April 02 and Jan 03 window.

This means that 108 MMB will be bought through the royalty in kind method (oil in leu of tax dollars)

After talking to the head of the SPR division at the EIA he told me that some of that 108 MMB will be bought outright.  If they use the EIA's timeline, which is a max flow of oil into the SPR of 100,000 Bbl's a day then it takes 3 years to fill the remainin 108 MMB, if you take the 47 not in hand yet and add it to the oil they still need to purchase then it takes five years to fill the SPR to the max of 700 MMB