Depleted US Strategic Petroleum Reserve loses potency as Iran war grinds on
Six months into the US-Israeli war on Iran, Washington may find it harder to calm jittery oil markets after US presidents drained the ageing Strategic Petroleum Reserve (SPR) over the last five years. The SPR, which Washington created after the oil crises of the 1970s, holds crude in a series of 60 underground salt caverns along the coasts of Texas and Louisiana. After years of releases by former President Joe Biden and President Donald Trump, the reserve is at its lowest level since 1982, holding just 289.7 million barrels. The level will drop to about 243 million if Trump releases a final batch of 39 million barrels from a March agreement with the International Energy Agency (IEA). More than 30 countries agreed then to release a record 400 million barrels, with the US contributing 172 million, in an effort to calm markets after the US and Israel launched the war on Iran on February 28. Oil in the caverns, some of which are as tall as the Empire State Building, floats on top of water. The water level rises as more oil is released, which can damage cavern walls and pipes and pumps that draw out the crude. A Department of Energy source said the minimum operating level is 70 million
Depleted US Strategic Petroleum Reserve loses potency as Iran war grinds on
Six months into the US-Israeli war on Iran, Washington may find it harder to calm jittery oil markets after US presidents drained the ageing Strategic Petroleum Reserve (SPR) over the last five years. The SPR, which Washington created after the oil crises of the 1970s, holds crude in a series of 60 underground salt caverns along the coasts of Texas and Louisiana. After years of releases by former President Joe Biden and President Donald Trump, the reserve is at its lowest level since 1982, holding just 289.7 million barrels. The level will drop to about 243 million if Trump releases a final batch of 39 million barrels from a March agreement with the International Energy Agency (IEA). More than 30 countries agreed then to release a record 400 million barrels, with the US contributing 172 million, in an effort to calm markets after the US and Israel launched the war on Iran on February 28. Oil in the caverns, some of which are as tall as the Empire State Building, floats on top of water. The water level rises as more oil is released, which can damage cavern walls and pipes and pumps that draw out the crude. A Department of Energy source said the minimum operating level is 70 million
