Strategic Petroleum Reserve: Substantial Progress Made, but Capacity and Oil Quality Concerns Remain
EMD-82-19
Published: Dec 31, 1981. Publicly Released: Dec 31, 1981.
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Highlights
The Strategic Petroleum Reserve (SPR) is vital to the Nation's efforts to protect itself against oil embargoes or temporary oil shortages. GAO was asked to provide periodic status reports and an overall report on the Administration's efforts through fiscal year 1981 to fill SPR in compliance with the Energy Security Act.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Secretary of Energy should emphasize crude oil quality in acquiring oil for the Strategic Petroleum Reserve under current specifications, to the extent that availability and prices of such crudes allow. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should require the Deputy Assistant Secretary for the Strategic Petroleum Reserve to document the rationale for any future lowering of SPR oil quality specifications. Such documentation should address key reasons for the change, such as the availability and comparative costs of higher quality crude oils. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Energy | The Secretary of Energy should evaluate the options for achieving an average annual fill rate of 300,000 barrels per day, assuming the planned and other Strategic Petroleum Reserve sizes. The evaluation, which should be available for fiscal year 1983 congressional budget deliberations, should assess costs and benefits of alternatives to constructing new underground storage facilities, including such options as leasing temporary storage capacity. |
Closed – Not Implemented
On August 4, 1982, Congress enacted the Energy Emergency Preparedness Act of 1982, which raises the minimum mandatory fill rate for the Strategic Petroleum Reserve and authorizes the use of funds for the interim storage of oil. An accomplishment report is being propared for the congressional action.
|
| Department of Energy | The Secretary of Energy should make a decision no later than September, 30, 1982, on whether the quality specifications and acquisition strategy for Strategic Petroleum Reserve oil should be revised. The results of the ongoing studies of oil quality and the size of the reserve should be useful in making that determination. |
Closed – Not Implemented
DOE currently plans to make decisions on oil specifications on an ad hoc basis. GAO plans to follow up on DOE actions in this area during ongoing work on the quarterly status of the Strategic Petroleum Reserve activities.
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Topics
Energy shortagesEnergy suppliesMultiyear contractsOil importingOil resourcesPetroleum storageProcurement practicesProgram evaluationSolicitation specificationsCrude oil