http://quote.bloomberg.com/apps/news?pid=10000006&sid=aTV.4Sa8t4rM&refer=homeFilling the SPR
``The SPR is only 8 million barrels short of being filled, which will make more oil available,'' O'Grady said.
President George W. Bush has said he wants to fill the U.S. Strategic Petroleum Reserve to its 700 million-barrel capacity by this summer. The reserve holds 692.1 million barrels, the Energy Department reported on its Web site today.
The petroleum reserve was created in 1975 following the Arab oil embargo of 1973 and 1974. The oil is stored in more than 50 underground salt caverns along the Texas and Louisiana coast.
The Energy Department on May 10 lowered its estimate of crude-oil prices this year by 6.2 percent to an average of $51.36 a barrel. The price for West Texas Intermediate crude oil, the U.S. benchmark, was cut from $54.74 a barrel estimated in April, the department's Energy Information Administration said in its monthly Short-Term Energy Outlook.
U.S. Economy
Article is a little over halfway down.
And something from CATO Institute. Must be something to the article.
http://www.cato.org/pubs/regulation/reg13n2-singer.htmlSnake Oil in the SPR
S. Fred Singer
Washington Institute for Values in Public Policy
"A little iconoclasm may be in order as Congress, alarmed about rising oil imports, prepares to expand the Strategic Petroleum Reserve (SPR). Now a 600-million-barrel store of crude oil, accumulated at an average price per barrel substantially higher than the current price, the $25 billion SPR rests in underground salt caverns in Texas and Louisiana under the watchful eyes of Department of Energy (DOE) bureaucrats. It is problematic whether they will ever release it; they might as well be storing snake oil.
On February 1, 1990, the Secretary of Energy delivered a study to Congress that discourages expanding the SPR beyond its currently authorized 750 million barrels. Yet legislative proposals call for a SPR of one billion barrels, the goal chosen by the Carter administration; H.R. 3193, introduced in August 1989, would also add regional stockpiles and even stocks of oil products-to further increase our demand for imports from OPEC and other exporting countries. With reauthorization of the 1975 Energy Policy and Conservation Act coming up, this is a good time to reexamine the purpose and operation of the SPR and to expose some myths."