Source: Fortune
Summary
The US Strategic Petroleum Reserve (SPR) has reached a 40-year low, with experts warning that further depletion could damage the underground caverns where the reserves are stored. The SPR has dropped below 300 million barrels for the first time since the 1980s, and is expected to drain further to 243 million barrels. The Department of Energy has denied claims that the changing inventory levels risk harming the caverns, but experts argue that the repeated drawdowns and refills have reduced the long-term viability of the caverns.
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The US Strategic Petroleum Reserve has been depleted to a 40-year low, sparking concerns about the integrity of the underground caverns where the reserves are stored. The Department of Energy has downplayed the risks, but experts like Amos Hochstein and Siddharth Misra warn that the repeated drawdowns and refills have reduced the long-term viability of the caverns. The SPR was designed to have an initial 25-year lifespan, but has endured dozens of releases since its construction in the 1970s and ‘80s. As the reserve levels continue to drop, the risk of physical damage to the caverns increases, including the potential for thermal shock and the destruction of surface pumps.
The situation is a classic case of “managing the asset” – where the focus is on short-term gains rather than long-term sustainability.
Author: Evan Null
