• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 1 day Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 4 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 6 hours Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
  • 8 days Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 8 days "The Calm Before The Storm In Oil Markets" by Tom Kool of OILPRICE and seen at YahooFinance
  • 2 days Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 8 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 8 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

U.S. Strategic Oil Reserves Could Fall By 50% Over The Next Decade

  • The U.S. strategic petroleum reserve could drop by 304 million barrels over the next 10 years according to the EIA 
  • The reason for this fall is a combination of recent legislation and the decision by Biden last week to release 50 million barrels 
  • Several infrastructure bills have already committed to SPR releases towards the end of the decade

Recent legislation and last week’s announcement of a release of 50 million barrels of crude oil from the U.S. Strategic Petroleum Reserve (SPR) could see America’s strategic stockpiles drop to around 314 million barrels by the start of the 2032 fiscal year, from 618 million barrels as of early October 2021, the Energy Information Administration (EIA) said on Monday.

If strategic crude oil stockpiles nearly halve over the next decade, they would stand in 2032 at their lowest level since March 1983, the administration noted. 

U.S. President Joe Biden said last week that the Department of Energy would release 50 million barrels of oil from the SPR in a bid to lower high gasoline prices in a coordinated effort with other major oil-consuming nations. The oil market, however, had largely priced in SPR releases, as the previous week’s slide in prices showed. Analysts also pointed out that one-off sales from strategic reserves cannot do much to move oil prices significantly lower.   

Hours after the announcement of the SPR release, oil prices actually rose, erasing earlier losses—the opposite of the goal to reduce high crude oil and gasoline prices. 

Oil prices plunged on Friday, but the crash had nothing to do with the announced SPR release. The market was spooked by a new heavily mutated COVID variant, Omicron, which is also believed to be more contagious than previous strains. 

Apart from the SPR release announced last week, recent U.S. legislation plans for drawdowns of SPR stocks toward the end of the decade. For example, the Infrastructure Investment and Jobs Act, passed earlier this month, includes a provision to draw down a total of 87.6 million barrels of crude oil from the SPR in fiscal years 2028 through 2031, the EIA noted. 

In addition, the Fixing America’s Surface Transportation Act, passed in 2015, and The Bipartisan Budget Act of 2018 collectively call for the sale of more than 160 million barrels of crude oil from the SPR in 2022 through 2027. 

As a member of the International Energy Agency (IEA), the United States is obligated to maintain stocks of crude oil and petroleum products, both public and private, to provide at least 90 days of U.S. net import protection.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News