US Strategic Oil Reserves Plunge Below 300 Million Barrels, Raising Operational Concerns

According to the International Desk of Webangah News Agency, U.S. federal data released this week indicates that the Strategic Petroleum Reserve has dropped below 300 million barrels, marking a historic low not seen since the early 1980s when the reserve was initially established. As inventories continue to decline, the SPR faces escalating risks to its operational capacity and the integrity of its vast storage caverns.

Experts have issued warnings that the geological salt caverns housing the SPR could suffer damage from rapid inventory releases, particularly in response to energy disruptions like the ongoing conflict concerning Iran. The current low levels, representing a four-decade nadir, pose significant challenges.

These experts highlighted that damage to the storage caverns would complicate the nation’s ability to respond to future energy emergencies. The oil stored within the SPR is housed in 60 salt caverns situated thousands of feet underground across four primary locations along the Gulf Coast in Louisiana and Texas.

Data published by the U.S. Department of Energy on Monday confirmed the reserve’s dip below the 300 million barrel threshold. This reduction is attributed to the release of 172 million barrels of oil by the United States in response to supply disruptions stemming from the conflict with Iran.

The Department of Energy has stipulated that a minimum of 70 million barrels must be maintained within the reserve to ensure the safe management and stability of these underground caverns.

Previously, in 2023, the SPR under the Biden administration had seen its reserves fall below 350 million barrels in response to the conflict in Ukraine. Prior to the escalation of tensions involving Iran, the reserve had been replenished to approximately 415 million barrels.