Need To Consider a Regional Petroleum Reserve for All Petroleum Products

EMD-79-14: Published: Mar 20, 1979. Publicly Released: Mar 20, 1979.

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A review of efforts by the Department of Energy (DOE) to create a strategic petroleum reserve has brought to light the fact that legislation which authorized the development of regional reserves has not been fully implemented. Specifically, DOE has failed to obtain sufficient data concerning demand and imports of refined petroleum products.

The Energy Policy and Conservation Act requires DOE to annually develop and evaluate product demand and import data for each of its regions to determine whether regional product storage is needed to offset the impact of a supply interruption. DOE has failed to comply with this requirement. While DOE believes that no regional reserves, other than for residual oil, are needed and collection of the data necessary to more effectively implement the law may not be cost effective, DOE has not made the analysis necessary to support this belief.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of Energy should fully implement the legislation which authorized the regional reserve program by expanding and improving the database used by DOE in considering the establishment of regional reserves of refined petroleum products. Specifically, DOE should expand its list of petroleum products for which it collects import and demand data and annually gather this data by region.

    Agency Affected:


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