The US Strategic Petroleum Reserve (SPR) has recently fallen to approximately 307.7 million or 311.4 million barrels, depending on the source, marking its lowest level since March 1983. This significant decline is attributed to a decision to release 172 million barrels to stabilize energy prices during the ongoing Iran war. This drawdown follows a much steeper decline between 2021 and 2023, where the SPR dropped from about 638 million barrels in early 2021 to around 350 million barrels by mid-2023. Former President Joe Biden authorized selling up to 260 million barrels during this earlier period to keep gas prices low amid Russia's invasion of Ukraine, a move that the U.S. Department of the Treasury found lowered gasoline prices by 17 to 42 cents per gallon.
The current decline was influenced by President Donald Trump's decision to release 172 million barrels to stabilize energy prices due to the Iran war. This also builds upon previous actions, as the SPR had already seen a considerable reduction. The SPR's maximum capacity is 727 million barrels, and with the U.S. consuming an estimated 20 million barrels of petroleum daily, even a full reserve would only last about 36 days. The reserve's utility is seen more as a temporary buffer to buy time rather than a long-term solution to energy security.
A contentious point in the SPR's history was during the start of the COVID-19 pandemic when President Trump ordered the Department of Energy (DOE) to buy 77 million barrels to capitalize on low oil prices, then between $20 and $30 a barrel. This $3 billion plan, which would have increased the reserve to around 388 million barrels by today, was ultimately not implemented due to a lack of bipartisan support, with Democratic Senate Minority Leader Chuck Schumer opposing it as a "bailout for big oil." This decision is now viewed as a missed opportunity given current oil prices are in the $90-$100 range. There is an ongoing debate about the SPR's effectiveness, with some arguing it's more of a political tool than an efficient response to supply shocks, and that private inventories could be more effective.
