The United States’ Strategic Petroleum Reserve has fallen below 300 million barrels, reaching a level not seen in more than four decades as Washington releases oil amid the war with Iran and disruptions around the Strait of Hormuz.
Data released Monday by the U.S. Department of Energy showed the reserve continuing to decline after a series of emergency releases. The stockpile’s condition has also raised concerns about aging infrastructure and the ability to respond to future energy emergencies.
The Strategic Petroleum Reserve was created in 1975 following the Arab oil embargo of 1973-74. It stores crude oil in underground salt caverns along the U.S. Gulf Coast and was designed to protect the country against major disruptions to oil supplies.
The reserve has been used during several major crises, including the 1991 Persian Gulf War, Hurricane Katrina in 2005 and the Libyan civil war in 2011.
The largest release came in 2022 after Russia’s invasion of Ukraine, when the Biden administration announced the release of 180 million barrels in coordination with other International Energy Agency members.
Iran war puts additional pressure on reserves
The current situation has placed fresh pressure on the reserve.
The war with Iran and disruption around the Strait of Hormuz have created another major oil-supply shock. The United States has committed to releasing 172 million barrels from the Strategic Petroleum Reserve in coordination with other countries.
By the middle of last month, the reserve had fallen to approximately 311 million barrels, compared with its authorized capacity of 714 million barrels.
The declining stockpile has raised concerns about how quickly the reserve could respond if another major disruption occurs.
Aging infrastructure adds to concerns
A Government Accountability Office review found that aging infrastructure could increasingly limit the Strategic Petroleum Reserve’s ability to respond to future emergencies.
The GAO said the Department of Energy had completed some work to extend the life of the facilities, but repairs were not keeping pace with the infrastructure problems.
The agency warned of a growing backlog and operational limitations, while the Department of Energy has identified concerns that aging infrastructure could increasingly restrict the reserve’s ability to meet future fill or drawdown requirements.
The report concluded that the reserve’s operational capability is at risk.
Bank of America data cited by The Hill estimated that the current stockpile represented roughly 43 days of supply.
The situation highlights the growing challenge facing the United States as it attempts to maintain an emergency oil buffer while responding to prolonged disruptions in global energy markets.
