ABSTRACT

Response Options to Oil Supply Disruptions [November 1, 2019]   [open pdf - 461KB]

From the Overview: "The September 2019 oil infrastructure attacks in Saudi Arabia temporarily disrupted production and processing of approximately 6% of global crude oil supply. This resulted in the largest single-day price increase over the last 10 years, as measured by West Texas Intermediate (WTI, the U.S. domestic oil price benchmark). This effect on U.S. domestic price levels from a temporary disruption in a foreign country illustrates the integrated and global nature of crude oil markets. Interruptions in oil supply could affect the price of crude oil and petroleum products (e.g., gasoline). The volume and rate at which lost supply is restored are key factors that contribute to the duration and magnitude of price effect. Also, assured access to crude oil is associated with energy independence and energy security. There are two primary options to replace lost or interrupted supplies: releasing stockpiles or using spare capacity. These and other options may be of interest to Congress during a crude oil supply disruption."

Report Number:
CRS Insight, IF11350
Author:
Publisher:
Date:
2019-11-01
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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