About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (May 15, 2020)

handle is hein.crs/govdamt0001 and id is 1 raw text is: Researh Sevice Strategic Petroleum Reserve: Recent Developments Updated May 15, 2020 Established through enacted legislation in 1975 (P.L. 94-163), the U.S. Strategic Petroleum Reserve (SPR, 42 U.S.C. §6231 et seq.) was created to reduce the impact of petroleum supply disruptions and to carry out obligations under the International Energy Program (IEP, a multilateral treaty-25 UST 1685-that requires signatories to maintain emergency petroleum reserves). The SPR is authorized to hold up to 1 billion barrels of petroleum products. Physical storage capacity is currently 714 million barrels of crude oil and SPR inventories were 635 million barrels as of April 17, 2020. As U.S. net petroleum imports started declining in the mid-2000s, IEP reserve volume requirements declined as well. As a result, Congress began selling SPR crude oil to pay for other legislative priorities. Since 2015, Congress has enacted seven laws that mandate the sale of 271 million barrels of SPR crude during the period of fiscal year (FY) 2017 through FY2028. Additionally, Congress has authorized SPR oil sales up to $2 billion to pay for SPR facility modernization. Steep and rapid oil price declines in early March motivated suspension of an FY2020 modernization sale. As oil market oversupply increased and prices continued declining, using the SPR to provide some degree of relief to the U.S. oil sector is one policy option that has been explored. FY2020 Modernization Sale Suspended Authorized by the Bipartisan Budget Act of 2015 (P.L. 114-74) and required by the Further Consolidated Appropriations Act, 2020 (P.L. 116-94) to sell up to $450 million of crude oil in FY2020, the Department of Energy (DOE) released a Notice of Sale (NoS) on February 28, 2020, that offered to sell as much as 12 million barrels of SPR crude oil. Offers were due March 10 and deliveries were to begin as early as April 1. Price adjustment formulas in the NoS, along with recent oil price declines created challenges for DOE to realize potential revenues from the sale (see Figure 1). Congressional Research Service https://crsreports.congress.gov IN11373 CRS NS GHT Prpred For Meumbers and Comrm ttees of Conress ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most