The Strategic Petroleum Reserve is the US government’s emergency oil reserve, containing 700 million barrels of oil worth over $88 billion. It could supply the country for two months, but only a third of daily needs. It was established in 1975 after the 1973-74 oil embargo, and consists of four sites on the Gulf of Mexico coast. The US is investing in alternative energy sources to achieve independence from foreign oil.
The Strategic Petroleum Reserve is the United States government’s emergency oil reserve. It would be used if the US couldn’t import crude oil from overseas for some reason, such as an oil embargo, naval blockade, nuclear war, or something equally dire. The Strategic Petroleum Reserve contains approximately 700 million barrels of oil. At $125 US Dollars (USD) a barrel, its market value is over $88 billion USD.
Because the United States imports about 12 million barrels of oil a day, the Strategic Petroleum Reserve has about two months’ supply for the entire country. However, only about 4 million barrels a day could be pumped out of the reserve, so it actually has enough oil for six months, even though as it stands, it could only meet a third of the country’s oil needs. No studies are available on the effect this would have on the US economy, but it would undoubtedly be negative.
The Strategic Petroleum Reserve was established in 1975 after the 1973-74 oil embargo, which sent gas prices soaring and caused many long gas station shutdowns. Since 1975, and especially recently, with the rising cost of oil, the United States has invested in alternative energy sources to one day achieve independence from foreign oil. Possibilities include plug-in hybrid cars and the use of fuel cells and biofuels.
Physically, the Strategic Petroleum Reserve consists of four sites on the Gulf of Mexico coast. They are underground salt domes that have been drained of water and filled with oil. Sites include Bryan Mound in Freeport, Texas (254 million barrels), Big Hill in Winnie, Texas (160 million barrels), West Hackberry in Lake Charles, Louisiana (227 million barrels), and Bayou Choctaw in Baton Rouge, Louisiana (76 million barrels). A future site is planned in Richton, Mississippi with a capacity of 160 million barrels. All but the Baton Rogue Reservation have an extraction capacity of over one million barrels per day, which goes to 1.5 million barrels per day for the Big Hill and Bryan Mound sites.
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