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Strategic Petroleum Reserve
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Authors: Robert Bamberger 
Book Description:
To help prevent a repetition of the economic dislocation caused by the 1973-74 Arab oil embargo, Congress authorized the Strategic Petroleum Reserve (SPR) in the Energy Policy and Conservation Act (EPCA, P.L. 94-163). Physically, the SPR comprises five underground storage facilities, hollowed out from naturally occurring salt domes, located in Texas and Louisiana. Oil stored at one of the sites, Weeks Island, was transferred after problems with the structural integrity of the cavern were discovered in the mid-1990s. Hurricane Katrina made landfall early in the morning of August 29, 2005 inflicting severe damage and shutting down oil and gas production and refining activities in the Gulf of Mexico. Damage assessments continue. By September 2, three requests for loans totaling 8.5 million barrels had been approved; a few others are pending. The Administration also announced it was making 30 million barrels available. However, as a policy tool to respond to the crisis, the SPR has limitations because a barrel of crude contributes to product supply only if there is refining capacity to turn the crude into gasoline or diesel fuel. Consequently, recovery from the hurricane’s effects will depend upon resumption of production and refining operations in the Gulf, and the ability to transport petroleum products. On August 8, 2005, the President signed the Energy Policy Act of 2005 (H.R. 6). The bill as enacted permanently authorizes the SPR and requires, “as expeditiously as practicable,” expansion of the SPR to its authorized maximum of 1 billion barrels. The Secretary is required to develop procedures for achieving the fill objective without “incurring excessive cost,” or placing upward pressure on prices. Any fill policy is also to take into consideration minimizing income foregone to the Treasury by filling the SPR with additional royalty-in-kind (RIK) oil.

Table of Contents:
Preface

Chapter 1 - Strategic Petroleum Reserve; pp. 1-23
(Robert Bamberger)

Chapter 2 - The Strategic Petroleum Reserve: Possible Effects on Gasoline Prices of Selected Fill Policies; pp. 25-36
(Robert Bamberger)

Index

   Binding: Flexback
   Pub. Date: 2005
   ISBN: 1-59454-786-6
   Status: AV
  
Status Code Description
AN Announcing
FM Formatting
PP Page Proofs
FP Final Production
EP Editorial Production
PR At Prepress
AP At Press
AV Available
  
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