ABSTRACT

Strategic Petroleum Reserve [Updated February 28, 2005]   [open pdf - 96KB]

"Congress authorized the Strategic Petroleum Reserve (SPR) in the Energy Policy and Conservation Act (EPCA, P.L. 94-163) to help prevent a repetition of the economic dislocation caused by the 1973-74 Arab oil embargo. The program is managed by the Department of Energy (DOE). Physically, the SPR comprises five underground storage facilities, hollowed out from naturally occurring salt domes, located in Texas and Louisiana. The SPR, with a capacity of 700 million barrels, currently holds 680 million barrels, and it is expected that capacity will be reached later in 2005. The price of crude oil and gasoline rose steeply during 2004, with crude exceeding $50/barrel during October in the wake of damage from Hurricane Ivan to crude oil production and pipeline delivery systems on the Gulf Coast. On September 23, 2004, the Bush Administration agreed to a request placed to the Department of Energy from refineries seeking to borrow crude oil from the Strategic Petroleum Reserve (SPR), to be replaced within a short period of time. Other requests followed. Roughly 5.0 million barrels of SPR crude was loaned to five refiners. Under the terms of a swap, the volume of oil returned is greater than the volume borrowed."

Report Number:
CRS Issue Brief for Congress, IB87050
Author:
Publisher:
Date:
2005-02-28
Series:
Copyright:
Public Domain
Retrieved From:
U.S. Department of State, Foreign Press Centers: http://www.fpc.state.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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