"It's down to 59 days."
Yeah; I didn't figure in the drawdown. We aren't refilling the SPR until after the election.
I'm not sure there is an absolute requirement for the crude itself..."The President can..."
We might release oil to help with a short term emergency in another country. A number of SPRs were tapped to send us oil after Katrina.
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When can the Reserve be used?
Answer: The circumstances that might require the use of the Strategic Petroleum Reserve are defined in the Energy Policy and Conservation Act (EPCA). Generally, there are three possible types of drawdowns envisioned in the Act:
Full drawdown: The President can order a full drawdown of the Reserve to counter a "severe energy supply interruption." EPCA defines this as "a national energy supply shortage which the President determines -
(A) is, or is likely to be, of significant scope and duration, and of an emergeHncy nature
(B) may cause major adverse impact on national safety or the national economy; and
(C) results, or is likely to result, from (i) an interruption in the supply of imported petroleum products, (ii) an interruption in the supply of domestic petroleum products, or (iii) sabotage or an act of God.
EPCA also states that a severe energy supply interruption "shall be deemed to exist if the President determines that -
(A) an emergency situation exists and there is a significant reduction in supply which is of significant scope and duration;
(B) a severe increase in the price of petroleum products has resulted from such emergency situation; and
(C) such price increase is likely to cause a major adverse impact on the national economy."
Limited drawdown: If the President finds that -
(A) a circumstance, other than those described [above] exists that constitutes, or is likely to become, a domestic or international energy supply shortages of significant scope or duration; and
(B) action taken....would assist directly and significantly in preventing or reducing the adverse impact of such shortage"
then the Secretary may draw down and distribute the Strategic Petroleum Reserve, although in no case:
"(A) in excess of an aggregate of 30,000,000 barrels....
(B) for more than 60 days....
(C) if there are fewer than 500,000,000 barrels....stored in the Reserve."
Test Sale: The Secretary of Energy is authorized to carry out test drawdowns and distribution of crude oil from the Reserve. If any such test drawdown includes the sale or exchange of crude oil, "then the aggregate quantity of crude oil withdrawn from the Reserve may not exceed 5,000,000 barrels during any such test drawdown or distribution."
Question: Can oil be withdrawn from the Reserve for other reasons?
Answer: Yes. The Department of Energy has the authority to exchange oil from the Reserve. These exchanges have been used in the past to replace less suitable grades of crude oil with higher-quality crudes and for limited, short-duration actions to assist petroleum companies in resolving oil delivery problems. In 2000, crude oil from the Reserve was exchanged for storage capacity and stocks to create the Northeast Heating Oil Reserve. During Fall 2005, an exchange was was conducted at the request of refineries in the Gulf Region when Hurricane Katrina caused disruptions to scheduled deliveries. During 2006, small exchanges occured in January and June when accidents in shipping channels disrupted marine deliveries to refiners.
fe.doe.gov
According to a March 2001 agreement,[citation needed] all 26 members of the International Energy Agency must have a strategic petroleum reserve equal to 90 days of oil imports for their respective country.
en.wikipedia.org |
