How the US Government is Using Oil to Keep the Country Running
Deep beneath the Texas and Louisiana Gulf Coasts, the US government stores a precious commodity: crude oil. The Strategic Petroleum Reserve (SPR), with a capacity of 714 million barrels, serves as a deterrent against oil import cutoffs and a vital tool in foreign policy.
Established in 1975, the SPR aims to mitigate disruptions in commercial oil supplies that could compromise national security or the economy.
Managed by the US Department of Energy (DOE), the SPR stores sweet and sour crude oil in four salt caverns. The DOE oversees the acquisition, storage, and release of oil, which can be tapped during emergencies or supply disruptions.
The SPR has played a critical role in addressing energy crises, including the 1973-1974 oil embargo and Hurricane Katrina.
Releasing oil from the SPR is subject to specific rules outlined in the Energy Policy and Conservation Act (EPCA). The president can order a full drawdown in the event of a severe energy supply interruption, while limited drawdowns can occur in response to domestic or international energy shortages. Test sales or exchanges are also permitted.
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Recent drawdowns include the historic 180-million-barrel release announced by President Joe Biden in March 2022, the largest in US history. This move aimed to address supply disruptions related to the war in Ukraine and provide a bridge until domestic production increased.
The SPR’s duration depends on the rate of drawdown. If released at 1 million barrels per day, the current stock of 405.1 million barrels would last approximately one year without replenishment or additional oil sources.
However, given the US consumes an average of 19.89 million barrels of petroleum per day, this amount would have a limited impact.
In summary, the US Strategic Petroleum Reserve serves as a vital safeguard against energy crises, providing a strategic supply of crude oil that can be tapped during emergencies or supply disruptions.
While its duration is limited, the SPR remains a critical component of the nation’s energy security strategy.
