US’ repeated release of crude oil from SPR lowers national stockpile to lowest point in 3 decades
Date
12/5/2023 4:07:14 AM
(MENAFN) US Oil and gas Association Leader Tim Stewart revealed in an interview with a US news agency that due to the Biden administration's repeated release of crude oil from the Strategic petroleum Reserve (SPR), the national stockpile is now at its lowest point in over three decades.
Stewart highlighted that the White House sold more than 40 percent of the SPR, totaling 180 million barrels in 2022, as part of efforts to control increasing fuel prices while discussing the Biden administration's domestic energy policy approach.
“Originally, the strategic petroleum reserve was designed to address disruptions in the crude supply but not necessarily the high prices,” he declared.
Stewart pointed out that before the previous year, the most significant release occurred during the 1991 US military operation in the Gulf, referred to as 'Desert Storm,' amounting to 31 million barrels. Another notable event was the 2005 Hurricane Katrina disaster, during which 30 million barrels were sold. “But 12 months ago, the administration initiated the largest drawdown in our history because they needed to get through an election cycle…”
Stewart noted that US refiners have historically depended on heavy sour crude, but the current predominant production in the country is light sweet crude. This shift is compelling the United States to export a significant amount to meet its refining needs.
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