The Strategic Petroleum Reserve: Authorization, Operation, and Drawdown Policy

Strategic Petroleum Reserve (United States)

The current SPR sites are expected to be usable until around Fill was resumed in The oil delivered to the reserve is "royalty-in-kind" oil—royalties owed to the U. These royalties were previously collected as cash, but in the government began testing the effectiveness of collecting royalties "in kind"—or in other words, acquiring the crude oil itself. This mechanism was adopted when refilling the SPR began, and once filling is completed, revenues from the sale of future royalties will be paid into the federal treasury.

On April 25, , President Bush announced a temporary halt to petroleum deposits to the SPR as part of a four-point program to alleviate high fuel prices. On January 23, , President Bush suggested in his State of the Union speech that Congress should approve expansion of the current reserve capacity to twice its current level. On May 16, , the U. This announcement came days after Congress voted to direct the Bush administration to do the same.

On October 20, , a report by the U. According to the report, the amount of oil held in reserve exceeds the amount required to be kept on hand given the need for imported crude oil had decreased in recent years.

The Strategic Petroleum Reserve: Authorization, Operation, and Drawdown Policy - Digital Library

According to the Sinai Interim Agreement signed by the United States and Israel , as a precondition for Israel's return of the Sinai Peninsula and its associated oil reserves to Egypt , in an emergency the United States was obligated to make oil available for sale to Israel for up to five years. The agreement was updated in , , , and, most recently, in for a ten-year period. The SPR contained an equivalent to days of imports as of September The United States is also obligated to contribute The Strategic Petroleum Reserve is primarily a crude petroleum reserve, not a stockpile of refined petroleum fuels such as gasoline , diesel and kerosene.

Although the United States maintains some extra supply of refined petroleum fuels, e. In the event of a major disruption to refinery operations, the United States would have to call on members of the International Energy Agency that stockpile refined products, and use refining capacities outside of the continental United States for relief. There have been suggestions that the DOE should increase its supplies and stockpile both gasoline and jet fuel. In some cases, this includes a strategic reserve of jet fuel. Former Secretary of Energy Samuel Bodman said that the Department would consider new facilities for refined products as part of an expansion of 1 to 1.

Loans are made on a case-by-case basis to alleviate supply disruptions.

Once conditions return to normal, the loan is returned to the SPR with additional oil as interest. From Wikipedia, the free encyclopedia. For other countries, see Global strategic petroleum reserves. For unextracted, naturally occurring sources, see Oil reserves. US Department of Energy. Retrieved August 27, Retrieved June 29, Retrieved February 25, Archived April 8, And according to a U. Energy Information Administration report issued in February, the reserve eventually will decline through Congressional authorized sales to about million barrels in October Neither of those are strategic uses.

Russell Evans, executive director of the Steven C. Evans said Congress and recent administrations appear to be viewing the reserve as a salable asset that can be used to raise needed cash, and warned that's dangerous thinking. He also argued routinely dipping into that well sets a bad precedent that future congresses and administrations might follow. Evans said the reserve should be treated more like lands, mineral rights and properties that are owned and managed by the Oklahoma School Land Commission to generate revenue that is fed into the state's coffers.

Oil sales from the reserve when market prices are high, for example, could generate cash for the government, provided stocks were regularly replaced with cheaper oil when market conditions warranted.

At the end of each fiscal year, earned income could be sent to the nation's general revenue fund, he suggested. As for releasing oil stocks from the reserve to control prices, Evans said he understands the attraction. He said every economy has a tipping point between energy prices high enough to generate economic activity and prices that are too high, which negatively impact economic growth through cost burdens on manufacturing, transportation and household budgets.

It also authorized selling 58 million barrels of crude oil during eight consecutive fiscal years commencing in fiscal , with revenue from those sales to be deposited into the general revenue fund at the U.

• Past Regrets?
• Three Loves in China;
• Flappy and Scrappy (I Can Read Level 2)!
• Strategic Petroleum Reserve (United States) - Wikipedia.
• Alpha - tome 11 - Fucking patriot (French Edition);
• Search form!

The remainder of sales will create general revenue. The tally on directed sales is million barrels, while the Energy Information Administration data predicts the net drop will be million barrels. The amounts of oil Congress directed to sell could be adjusted to more or less as most of the bills include dollar caps , depending on market pricing when those sales happen, officials said. The Strategic Petroleum Reserve's future is being evaluated by the U.

• Trump’s Budget Delivers Big Oil’s Wish: Reducing Strategic Petroleum Reserve;
• 31 Days Of Life Balance Tips?
• Feathered & Ribboned Hat Crochet Pattern.
• Chester Energy and Policy.
• DOE in Focus: Strategic Petroleum Reserve | Chester Energy and Policy.

Department of Energy, which operates the system. It also is being eyed by the U.

Desmog 2015 Main Menu

The subcommittee's ranking Democrat, U. Rush, has authored a draft measure with Republican U. Joe Barton that would create a pilot project to commercialize the reserve by enabling a portion of its future unused capacity to be leased by private operators. Rush stated increasing domestic oil production raises important questions that need examined, including whether the need for the Strategic Petroleum Reserve exists, and, if so, how big the reserve should be.