The US has decided against another significant release from its Strategic Petroleum Reserve (SPR) to alleviate rising oil prices. This decision comes despite the SPR currently holding only about 307-308 million barrels, a level not seen since March 1983. The authorized storage capacity of the SPR is 714 million barrels.
The SPR's inventory has been significantly depleted by 352 million barrels over the past four years, primarily due to releases ordered by President Donald Trump in March to counter the largest supply disruption in history when Iran choked off oil exports through the Strait of Hormuz, and subsequent releases to address disruptions from Russia's invasion of Ukraine.
Concerns about the SPR's integrity and future capability are also growing. A May report by federal auditors indicated that over a quarter of the reserve, at least 103 million barrels, is currently unavailable for drawdown due to construction and cavern outages. The infrastructure, established in 1975, is reportedly reaching the end of its life, with officials describing it as being held together with "Band-Aids." While a Department of Energy spokesperson stated that the operational minimum for safe management is around 70 million barrels, auditors warn of compromised ability to respond to future emergencies.
The US government has invested $1.4 billion for repairs, but the scope of the project had to be narrowed to stay within budget. Despite these challenges, David Goldwyn, a former State Department special envoy for international energy affairs, believes there's enough inventory for another crisis, though the Government Accountability Office has highlighted limitations in the SPR's drawdown, distribution, and fill capabilities due to aging infrastructure.
