Strategic Petroleum Reserve: Low Oil Prices Favor Increased Purchases
RCED-86-158
Published: May 22, 1986. Publicly Released: May 22, 1986.
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Highlights
GAO commented on the Department of Energy's (DOE) plans to stop filling the Strategic Petroleum Reserve (SPR) in July 1986: (1) as a budget-cutting measure; and (2) because it believes it will have stored sufficient oil to meet a 90-day contingency supply commitment to cover import disruptions.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Secretary of Energy should direct the SPR project manager to continue oil purchases at maximum fill rates beyond the July 1986 cutoff date and attain the 527-million-barrel inventory level. |
Closed – Not Implemented
Congressional action mandating an increased fill rate makes this recommendation moot.
|
| Department of Energy | The Secretary of Energy should direct the SPR project manager to resume cavern leaching activities as soon as possible with the objective of having 600 million barrels of capacity available by the end of FY 1987. |
Closed – Implemented
The Secretary of Energy ordered leaching to restart in July 1986. However, a goal of 600 million barrels was not articulated and present plans call for completion by the second quarter of 1988.
|
| Department of Energy | The Secretary of Energy should direct the SPR project manager to continue filling the SPR beyond the 527-million-barrel level at rates commensurate with oil prices, import levels, and availability of funding and storage capacity. |
Closed – Not Implemented
Congressional action mandating an increased fill rate makes this recommendation moot.
|
| Department of Energy | In order to undertake the above steps, the Secretary of Energy should request Office of Management and Budget approval to release whatever amount of the deferred funds is needed. |
Closed – Not Implemented
Congress overturned the deferral making this recommendation moot.
|
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Topics
Domestic crude oilEnergy consumptionOil importingOil resourcesPetroleum pricesPetroleum storageStrategic materialsUnobligated budget balancesStrategic petroleum reservesOil prices