A crude storage tank at the Freeport SPR facility
US SPR takes on new role
Strategic stocks have become as much a market management tool as a security of supply buffer, and this new tactic is likely to continue beyond the next election
The purpose and optimal size of the US Strategic Petroleum Reserve (SPR) has become the subject of debate since the Biden administration adopted an at-least implicit price band mechanism for withdrawals from and refills of the reserve in 2022. The US Department of Energy (DOE) released more than 220m bl from the SPR in 2022 to combat a 50% jump in benchmark light crude prices—to $120/bl—due to actions associated with Russia’s invasion of Ukraine in February of that year (see Fig.1). The initial 180m bl—released under IEA obligation, unlike the remainder—fetched an average price of $95/bl, suggesting an implicit top to the price band. A
Also in this section
22 November 2024
The Energy Transition Advancement Index highlights how the Kingdom can ease its oil dependency and catch up with peers Norway and UAE
21 November 2024
E&P company is charting its own course through the transition, with a highly focused natural gas portfolio, early action on its own emissions and the development of a major carbon storage project
21 November 2024
Maintaining a competitive edge means the transformation must maximise oil resources as well as make strategic moves with critical minerals
20 November 2024
The oil behemoth recognises the need to broaden its energy mix to reduce both environmental and economic risks
