Strategic Petroleum Reserve

Summary of Strategic Petroleum Reserve

A program established under authority of the Energy Policy and Conservation Act of 1975 that directs the U.S. Department of Energy to build a buffer stock of petroleum to insulate the United States against an interruption of foreign supplies. The act mandates a reserve of 750 million barrels by the end of 1990. On November 1, 1984, over 434 million barrels were in storage facilities in Texas and Louisiana, which would replace more than ninety days' imports. The reserve is being expanded by 159,000 barrels per day. During fiscal 1985, the Strategic Petroleum Reserve has been authorized to spend $2.05 billion for acquisition and transportation; the cost to complete the program will be approximately $27 billion.

(Main Author: William J. Miller)