What is the United States Strategic Petroleum Reserve (SPR)?
It is basically an emergency oil fund in the United States. “The focus has basically been to ensure there is enough supply in times of supply constraints, whether due to geopolitical or weather-related impacts.”
Nothing applies to President Biden releasing a million barrels a day as part of a strictly political effort to keep gas prices low during his presidency.
“The government created the reserve after the oil crisis of the 1970s,” said Matt Smith, oil analyst at Kpler, a data and analytics company. “Since then, it’s come in handy a few times, like during the Gulf War in 1991 and after Hurricane Katrina in 2005.”
In March, President Biden authorized the daily release of one million gallons of SPR crude to boost supply and try to lower gas prices after Russia invaded Ukraine.
This is not an American war, and now the Department of Energy reports that the reserve holds less oil than it has had in four decades, at around 427 million barrels. Additionally, SPR oil was sent to foreign countries with foreign companies bidding on oil sold at competitive auctions.
And after? Ian, Fiona shattered hopes of a calm hurricane season, could there be another Katrina? “So Katrina went through the Gulf of Mexico to the United States, destroyed a lot of production, and so there were SPR versions to supplement the American supply at that time,” Smith said.
Is the United States running on empty and President Biden now pushing for a 10 million barrel sale that brings total sales to 165 million barrels on the 180 million barrel sale target of here at the end of next month? Who knows?