The Biden administration has been on a mission for more than a year to restock the Strategic Petroleum Reserve (SPR), which was tapped at unprecedented levels in an effort to keep crude oil and refined product prices under control after Russia’s invasion of Ukraine in early 2022 disrupted energy flows globally. But if returning all of the released 180 MMbbl and replenishing the SPR to pre-war levels was the plan, they’ve got a long way to go. In today’s RBN blog, we examine the steps the administration has taken to replenish the reserve and the headwinds it faces.
The SPR is the largest emergency crude stockpile in the world. It was first proposed in the 1940s, but not established until 1975 and the first barrels weren’t added until 1977, four years after Arab members of producer cartel OPEC cut off oil flows to the U.S. after it provided aid to Israel during the Yom Kippur War. At that point, the U.S. was heavily dependent on Middle East crude for use at domestic refineries. (Many still remember idling in their cars in long lines at gas stations in hopes of getting a few gallons). The reserve was aimed at bolstering energy security and meeting the nation’s pledges with the then three-year-old International Energy Agency (IEA). According to a 1974 agreement, IEA members must hold stocks equivalent to at least 90 days of net oil imports, based on the previous year’s annual average. U.S. net imports averaged 2.42 MMb/d in 2023, so the total required in storage would be 217.8 MMbbl, or 58% of the SPR’s current inventory (more on that in a bit).
As shown in Figure 1 below, the federal crude oil storage program is located at two sites in Texas (Bryan Mound and Big Hill) and two more in Louisiana (West Hackberry and Bayou Choctaw). Oil is kept in underground salt caverns — 61 in all — that have a combined authorized capacity of 714 MMbbl. (The SPR once had an even higher storage limit of 727 MMbbl and reached that level in December 2009.) The SPR contains both domestic and foreign-sourced crude oils and, for the most part, these are of medium to light gravity (30 to 40 degrees API) and contain less than 2% sulfur. The Department of Energy (DOE) commingles the crudes according to their sulfur content –– sweet (less than 0.5% sulfur) or sour (greater than 0.5% but less than 2%). For most of its lifespan, the reserve has held more than 500 MMbbl, or just over 70% of capacity.
Join Backstage Pass to Read Full Article
About the song
“Running Up That Hill” was written by Kate Bush and appears as the first song on her fifth studio album, Hounds of Love. Released as the first single from the album in August 1985, it went to #3 on the UK Singles chart. In the U.S., it went to #13 on the Billboard Dance Club Songs and #30 on the Billboard Hot 100 Singles charts. The song regained popularity in May 2022 when Netflix used it in its series Stranger Things. Its re-release went to #1 on the U.K, Singles chart in June 2022 and #3 on the Billboard Hot 100 Singles chart in July 2022. Diane Grey choreographed the song’s video, featuring Kate Bush and Misha Hervieu in an interpretive dance. Personnel on the record were: Kate Bush (vocals, Fairlight CMI), Alan Murphy (electric guitar), Del Palmer (bass, LinnDrum programming), Stuart Elliot (drums), and Paddy Bush (balalaika).
Hounds of Love was recorded between June 1983 and June 1985 at Wickham Farm Home Studio in Welling, England; Windmill Lane in Dublin; and Abbey Road in London with Kate Bush producing. The album was released in September 1985 and went to #1 on the U.K. Albums chart and #30 on the Billboard 200 Albums chart. Four singles were released from the LP.
Kate Bush is an English singer, songwriter, record producer and dancer. Her professional career began when David Gilmour produced a demo for her that EMI executive Terry Slater liked and signed her to a record deal. She released her debut album, The Kick Inside, in 1978 when she was 19. She has released 10 studio albums, two live albums, two compilation albums, five EPs, and 36 singles. After the release of The Red Shoes in 1994, Bush dropped out of the public eye until the release of Aerial in 2005. She has won a Brit Award, two Ivor Novello Awards, and was inducted into the Rock and Roll Hall of Fame in 2023. Her last album release was 50 Words for Snow in 2011. Her last concert appearances were a 22-night residency at the Hammersmith Apollo in London in 2014. Only time will tell when the mysterious Kate Bush might emerge on the musical landscape again. It is guaranteed it will be on her own terms when she does.
Comments
It's sour and sweet crudes are both around 40 API gravity. This is what refineries used in the late 1970's before petcoke became a profit center. Additionally, I know of no pipelines headed out of the immediate areas say to Ponca City, Corpus Christi or any points inland even to Shreveport. They've all been reversed.
It does constantly receive crude oil as payment in kind for offshore leases, some not all.