The March appropriations bill passed by Congress and signed by President Biden to fund the federal government mandated the emptying of the federal gasoline reserve in fiscal year 2024, which concludes September 30, followed by its eventual closure. That means about 1 MMbbl — 42 MM gallons — of gasoline will find its way to the market in the next few months, or in as little as a few weeks. The Department of Energy (DOE) is planning to distribute those barrels by the end of June to help keep a lid on gasoline prices ahead of the July 4 holiday and into the heart of the summer driving season. In today’s RBN blog, we look at the decision to close the reserve and the potential impact of those barrels hitting the market.
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Let’s start with the history of the gasoline stockpile — formally called the Northeast Gasoline Supply Reserve (NGSR; magenta tanks in Figure 1 below). It doesn’t go back as far (or come anywhere near in size) as the more well-known Strategic Petroleum Reserve (SPR), which began in the 1970s. The NGSR was created in 2014, two years after Superstorm Sandy made landfall in the Northeast (see Save it for Later). The powerful storm badly damaged two refineries and shut more than 40 fuel terminals in the New York Harbor area — a critical oil and refined products hub — due to water damage and power loss and left some New York-area gas stations without fuel for nearly a month. The 1-MMbbl reserve was intended as a buffer, large enough to allow commercial suppliers to compensate for initial disruptions but not big enough to deter them from their own stock-keeping. The year it was established, designated terminals stored 700 Mbbl of gasoline in the New York Harbor area, 200 Mbbl in the Boston area and 100 Mbbl in South Portland, ME. The gasoline reserve, which is stored in above-ground tanks and managed by the DOE, has never been tapped for distribution.
Figure 1. Northeast Gasoline and Home Heating Oil Reserves. Source: Department of Energy
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About the song
“Shout” was written by Roland Orzabal and Ian Stanley. It appears as the first song on side one of Tears for Fears’ second studio album, Songs from the Big Chair. Roland Orzabal said the roots of the song began in his living room on a small synthesizer and a drum machine, with a chorus that was originally repeated like a mantra. The video for the song was shot in Dorset on the south coast of England and directed by Nigel Dick. It received heavy rotation on MTV upon its release. The single was released in November 1984 and went to #1 on the Billboard Hot 100 Singles chart. It has been certified Gold by the Recording Industry Association of America. Personnel on the record were: Roland Orzabal (lead, backing vocals, synthesizers, synth bass, lead and rhythm guitar, drum programming), Ian Stanley (Hammond organ, synthesizers), Chris Hughes (drums), Curt Smith (lead, backing vocals), and Sandy McLelland (backing vocals).
Songs from the Big Chair was recorded in 1984 at The Wool Hall in Beckington, UK, and produced by Chris Hughes. Released in February 1995, it went to #1 on the Billboard 200 Albums chart and has been certified 5x Platinum by the RIAA. Six singles were released from the LP.
Tears for Fears is an English synth-pop band formed in Bath, England, in 1981 by Roland Orzabal and Curt Smith. They have released seven studio albums, two live albums, three compilation albums, one EP, and 39 singles. The group broke up in 1991 but reformed in 2000. In 2021, Orzabal and Smith received an Ivor Novello Award for “Outstanding Song Collection.” Twenty-one members have passed through the band since its formation, with founding members Orzabal and Smith always a part of the group. They have been somewhat inactive since their last studio album, The Tipping Point, released in February 2022, and a brief tour supporting it in early 2023.
