This is an excerpt from EERE Network News, a weekly electronic newsletter.
DOE: Strategic Petroleum Reserve will be Full in August
DOE announced on June 10th that the nation's Strategic Petroleum Reserve (SPR) will be full by August, when it reaches 700 million barrels of oil. President Bush ordered the fill in November 2001 as a means to strengthen the nation's energy security in the wake of the 9/11 terrorist attacks. Since then, DOE has continuously added oil to the SPR, except when deliveries were deferred due to an oil workers' strike in Venezuela and when Hurricane Ivan disrupted the oil supply last fall. When the fill is complete, the President's decision will have added approximately 159 million barrels of crude oil to the nation's emergency stockpile. See the DOE press release.
Established in the aftermath of the early 70s oil embargo, the SPR is the world's largest inventory of emergency crude oil. The oil is stored in deep underground caverns in salt formations along the Gulf Coast of Texas and Louisiana, and in the event of a severe oil supply disruption, the SPR can be called upon to protect U.S. residents from economic harm and to provide fuel for national defense. For more information, see the "Petroleum Reserves" page of the DOE Fossil Energy Web site.
According to the latest "Short-Term Energy Outlook," published by DOE's Energy Information Administration, the price of crude oil is expected to average $53 per barrel for the third quarter of 2005, which places the value of the SPR at about $37 billion. See the "Short-Term Energy Outlook."