The caverns that hold the U.S. strategic oil reserves could get damaged by the rapid release of stockpiles in response to the Iran war, experts warned this week as inventories hit a four-decade low.
Damage to the caverns would make it more difficult to respond to future energy emergencies, the experts said. The oil in the Strategic Petroleum Reserve is stored at 60 salt caverns thousands of feet underground at four major sites along the Gulf Coast in Lousiana and Texas.
The SPR has tumbled below 300 million barrels for the first time since it was filled in the early 1980s, according to Department of Energy data released Monday. Inventories are depleting as the U.S. releases 172 million barrels in response to the supply disruption caused by Iran war. The SPR will sit at around 243 million barrels after the drawdown is finished.
The Energy Department has said at least 70 million barrels must remain in the reserve to safely maintain the caverns. Amos Hochstein, who served as a senior energy advisor to President Joe Biden, disputed that the figure this week.
