economy
The country's crude oil stockpile is at risk of operational failure: Watchdog
EXCLUSIVE — The Government Accountability Office has found that the Strategic Petroleum Reserve, the United States’s emergency stockpile of crude oil, is facing significant risks to its ability to operate and meet future energy crises, as inventories have hit their lowest level in 43 years.
TL;DR
- The Strategic Petroleum Reserve (SPR) is at its lowest inventory level in 43 years, with 331.2 million barrels recorded.
- The Government Accountability Office (GAO) identified significant risks to the SPR's operational capacity due to aging infrastructure, inadequate maintenance, and outdated facilities.
- Investments in the SPR have not kept pace with the needs of its aging reserve, leading to issues like oil spills and major equipment failures.
- A life-extension project initiated in 2016 has faced cost overruns, schedule delays, and reduced scope, with one facility removed entirely from the project.
- The GAO criticizes the lack of collaboration between the Department of Energy and Congress on SPR maintenance and calls for long-term strategic plans and consistent funding for upgrades.
- The effective drawdown and fill capabilities of the SPR are estimated to be at only 61% and 56% of their designed capacity, respectively.