America’s emergency oil stockpile is at a 38-year low, but it’s still got firepower left on ships that could turn the tide in a crisis — even without President Obama’s $2-billion oil-rescue plan.
In the short term, oil stockpiles across America are nearly at their lowest level in 38 years. And the country’s oil tanks are near capacity, the result of increased imports and a rise in fuel efficiency standards to help reduce U.S. oil consumption.
But in a far longer view, the U.S. still has plenty of spare oil reserves that could turn the tide of a major oil-shale crisis. A report published by Bloomberg this week showed America’s energy reserves may be worth as much as $1 trillion – enough oil to last 1.3 billion barrels of crude a year for several decades.
The stockpile, which is overseen by the Energy Information Administration and reported weekly by the U.S. Strategic Petroleum Reserve, is the nation’s last line of defense against the consequences of a future oil-shale crisis. In the event of widespread oil shortages, the U.S. could have the ability to provide nearly 20 million barrels per day of oil.
“What the stockpile does is really it takes it off the table from the beginning,” says David M. MacPherson, a senior petroleum analyst at the Institute of Energy Policy Studies. “It’s the last-resort fuel stockpile of the country.”
The U.S. strategic oil reserves are a relic from a time when the U.S. was much greener. More than 80 years ago, the nation’s strategic petroleum reserve helped prevent the nation’s economy from falling into a tailspin when tensions over oil production led to the first oil crisis of the 20th century.
Oil-reserve levels have declined over the years, with the Strategic Petroleum Reserve reporting that by the end of 2011 it had only enough fuel to last another 18 months.
The U.S. Strategic Petroleum Reserve, which is overseen by the Energy Information Administration, is the nation’s last line of defense against the consequences of a future oil-shale crisis.
Oil-reserve levels have declined over the years, with the Strategic Petroleum Reserve reporting that by the end of 2011 it had only enough fuel to last another 18 months.
But there are still