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Strategic Petroleum Reserve – USE IT NOW!

March 1, 2011

The following is from Wikipedia. I think the info is old and we have even more stored now. Why aren’t we using it to tame the oil price flames?

The  (SPR) is an emergency fuel store of oil maintained by the United States Department of Energy.

The US SPR is the largest emergency supply in the world with the current capacity to hold up to 727 million barrels (115,600,000 m3). The second largest emergency supply of oil is Japan‘s with a 2010 reported capacity of 583 million barrels (92,700,000 m3). Also, China has begun construction and planning for an expansion of a SPR that will place their SPR at 685,000,000 barrels (108,900,000 m3) by 2020, surpassing Japan.

The current inventory is displayed on the SPR’s website. As of August 31, 2009, the current inventory was 724 million barrels (115,100,000 m3). This equates to 34 days of oil at current daily US consumption levels of 21 million barrels a day. At recent market prices ($65 a barrel as of October 2008) the SPR holds over $34.3 billion in sweet crude and approximately $51.2 billion in sour crude (assuming a $15/barrel discount for sulfur content). The total value of the crude in the SPR is approximately $85.5 billion USD. The price paid for the oil is $20.1 billion (an average of $28.42 per barrel).[1]

Purchases of crude oil resumed in January 2009 using revenues available from the 2005 Hurricane Katrina emergency sale. The DOE purchased 10,700,000 barrels (1,700,000 m3) at a cost of $553 million.[2]

The United States started the petroleum reserve in 1975 after oil supplies were cut off during the 1973-74 oil embargo, to mitigate future temporary supply disruptions. According to the World Factbook[3], the United States imports a net 12 million barrels (1,900,000 m3) of oil a day (MMbd), so the SPR holds about a 58-day supply. However, the maximum total withdrawal capability from the SPR is only 4.4 million barrels (700,000 m3) per day, making it a 160 + day supply.



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