Filling the Strategic Petroleum Reserve

The nation’s Strategic Petroleum Reserve (SPR) contains more than 700 million barrels of oil and has about 27 million barrels of available capacity that is unfilled. DOE has also been directed to create and fill over 250 million barrels of additional capacity.

• With the price of light oil fluctuating greatly, this expansion could easily cost tens of billions of dollars. In addition, taking barrels of oil off the market to put in the reserve puts upward pressure on prices, but there is no consensus on the magnitude of that effect.

^ Back to topWhat Needs to Be Done

DOE can reduce the cost of filling the SPR by exchanging some of the lighter oil currently stored in the reserve for less expensive heavier oil.

Other options exist to improve the cost-effectiveness of filling the reserve, including

• the adoption of a dollar-cost averaging strategy when purchasing fill oil, and
• allowing oil companies more flexibility to defer delivery of oil to the SPR in return for additional deliveries in the future.
  Highlights of GAO-08-726T (PDF)

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Strategic Petroleum Reserve

Strategic Petroleum Reserve

Strategic Petroleum Reserve

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