Strategic Petroleum Reserve Case Study

Decent Essays
The United States can turn to the emergency stockpiles of petroleum products managed by the Department of Energy 's Office of Petroleum Reserves (OPR). The mission of the OPR is to protect the United States from severe petroleum supply disruptions through the purchase, storage, distribution and management of emergency petroleum stocks and to carry out U.S. obligations under the International Energy Program. The OPR manages three stockpiles: the Strategic Petroleum Reserve, the Northeast Home Heating Oil Reserve, and the Gasoline Supply Reserve. The Strategic Petroleum Reserve is designed to hold 713.5 million barrels of oil which is the largest government-owned stockpile of emergency crude oil in the world. The SPR provides the President with a powerful response option should a disruption in commercial oil supplies threaten the U.S. economy. In 1956 President Eisenhower suggested the creation of the strategic petroleum reserve, however …show more content…
As of December 2, 2016 the current stock inventory of the Strategic Petroleum Reserve is 429 million bbls. The last sale was considered a “test sale” in March of 2014. In September 1990 and November 1985 these were also considered “test sales” which totaled 10 million bbls of oil. The largest oil sale in the last 20 years came in June of 2011, the IEA coordinated release sold 30.64 million bbls of oil. This sale was in response to the ongoing loss of crude oil due to supply disruptions in Libya and other countries and their impact on the global economic recovery. I will provide charts of past sales and releases at the end of my paper so others can look further into the history of the sales from the Strategic Petroleum Reserve. The SPR locations stores both sweet crude and sour crude. The U.S. economy rough consumes 18-19 million barrels of oil on a daily basis. In 2013, the nation 's demand for gasoline rose for the first time since

Related Documents

  • Decent Essays

    In north Dakota and Texas a lot of oil has been extracted causing more and more oil to just sit and wait to be exported. In Alberta the oil sands have the third largest amount of oil behind only Saudi Arabia and Venezuela, there is “approximently 166 billion barrals worth of oil. There is also added competion in the oil market as Saudi and Nigerian oil are now competing against the USA and Canada causing the price of oil to drop. Recently in Canada the oil production was suddenly seized as forest fires destroyed the region where the oil sands were located. These played some parts into the drop of oil prices when it comes to the supply portion.…

    • 1135 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Russia thrives when oil prices are high; from 1999 to 2008 it had an average of 7% annual economic growth (Ip 2015). The 2008-09 Recession also left its mark on the economy, resulting in an 8% drop in the economy (Central Intelligence Agency 2016). The combination of low global oil prices and economic sanctions led to the Russian economy to shrink 4% in 2015, and it is expected to continue falling in 2016 (Central Intelligence Agency…

    • 1637 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Occidental Petroleum Essay

    • 1364 Words
    • 6 Pages

    Occidental's share of creation amid 2008 was around 15,000 BOE every day. In the second 50% of 2008, generation was roughly 8,000 BOE every day thus of the new assentions. At year-end 2008, demonstrated stores for Occidental's Libya resources totaled 28 million BOE. Occidental Petroleum arrangements to venture once more from agitated local markets before the year's over as it looks to cut expenses and concentrate its portfolio on three key markets in the Middle East, as per the organization's new CEO. Vicki Hollub, who will assume control as CEO of Occidental in April, said that the Houston-construct firm would center in light of three regions in the Middle East, including Abu Dhabi, Oman and Qatar, and also Colombia and the Permian Basin in Texas.…

    • 1364 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    Oil Fracking Case Study

    • 1921 Words
    • 8 Pages

    Proven oil reserves are those with a 90% chance of extracting oil. Furthermore, 76% of commercial energy is extracted from fossil fuels such as natural gas, oil, and coal while the rest comes from renewable sources. According the Organization of Petroleum Exporting Countries 1.5 trillion barrels of oil are available as of 2014 based on proven oil reserves. These calculations are repeatedly revised and disputed by organizations because there may be reserves that cannot be taken into consideration because they are yet to be discovered. The International Energy Agency Oil Market Report determined that in 2016 the world will consume 96 million barrels of oil and liquid fuels per day, interpreted as 35 billion barrels a year.…

    • 1921 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    Benefits Of The Iraq War

    • 1603 Words
    • 7 Pages

    In 2004, 2005, and 2006 we spent four times as much than in the Afghan war. Another problem that made us spend more money was the oil prices and the effect it had from the Iraq war. When we went to war with Iraq a barrel of oil cost us about 5 dollars, as of 2008 since the war was going on and since we got our oil from the Middle East the price per oil barrel jumped up to 10 dollars. It does not seem like a big price jump but since the oil price jumped up it is estimate that we spent 250 billion dollars on oil. The war completely stopped production of oil in Iraq and it dampered production of oil in the Middle East.…

    • 1603 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    OECD COMPOSITE LEADING INDICATORS (CLI) The OECD system of Composite Leading Indicators is designed to provide early signals of turning points in business cycles - fluctuation in the output gap, i.e. fluctuation of the economic activity around its long-term potential level. Although these charts are from 2014-2015 they continued to follow the same pattern leaving the United States in the same position as China, Europe, and the rest of the world. VII. CHINA INDUSTRIAL PRODUCTION Industrial production in China rose 5.90 percent year-on-year in December of 2015, slowing from a 6.20 percent increase in the previous month and missing market expectations of 6.0 percent growth.…

    • 935 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Companies in these sectors have benefited from the low gas prices, which they use as a source of electricity generation and as a feedstock. C. IMPACT OF FRACKING IN THE WORLD ECONOMY 1. COLLAPSE OF OIL PRICES At the beginning of 2014, oil was trading well above $100 per barrel. In January 2016 US Oil was trading at 26 dollars a barrel. Historically major oil price declines are driven by central bank policy errors that led to global economic recessions.…

    • 781 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Bp Pestle Analysis Essay

    • 1608 Words
    • 7 Pages

    This essay will consist the PESTLE analysis of the company operating in USA and the effects that the oil spillage in the Gulf of Mexico in 2010 did to the company’s policies. BP. (2016). Despite British petroleum being the sixth largest energy company in the World it has been involved in safety, environmental and political controversies. This has…

    • 1608 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Oil has kept the economy growing with billions of barrels increasing output every consecutive year. If oil production decreased and population continuing to grow exponentially, then industrialised countries may not be able to offer the high standard of living which then can lead to conflicts and civil wars (Georgian oil, 2014). Political instability is most predominant in the Middle East areas. This is due to illegal groups like Islamic state of Iraq and Syria (ISIS). They have currently taken capture of a large oil field in Syria and then sell the oil in the black market to fund for the weapons (Knipp, 2014).…

    • 929 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Davidson Swot Analysis

    • 1057 Words
    • 5 Pages

    These companies were founded by R.C. Baker and Howard Hughes almost 100 years ago (Baker Hughes, 2015). The company has its headquarters in Houston, Texas, USA. The company successfully joins a number of various other energy companies for providing crude oil and other services worldwide. Baker Hughes started its major operations in Kuwait, but unfortunately due to global recession and sudden decrease in Oil prices they had to do major downsizing in Kuwait.…

    • 1057 Words
    • 5 Pages
    Decent Essays