Low U.S. strategic reserves threatening the integrity of the 60 underground salt caverns storing oil
Fortune • • business
Key Points:
- The U.S. Strategic Petroleum Reserve (SPR) fell below 300 million barrels for the first time since the 1980s due to releases aimed at managing supply disruptions and rising energy costs from the Iran war, with levels expected to drop further to 243 million barrels.
- The SPR's oil is stored in 60 underground salt caverns with a total capacity of 714 million barrels, but repeated drawdowns risk damaging the caverns' structural integrity, as they were originally designed for fewer usage cycles.
- Experts warn that lowering oil levels below 300 million barrels could harm the caverns by dissolving salt walls, causing thermal shock, and creating sludge that threatens pumping equipment, potentially compromising the reserve's emergency response capability.
- The Department of Energy disputes claims that current inventory levels threaten cavern integrity, stating that the caverns remain full with a stable oil-to-water ratio, while political debates continue over the management and repair costs of the SPR infrastructure.
- A 2023 Government Accountability Office report noted that frequent drawdowns expand cavern volume and reduce spacing between caverns, raising concerns about the long-term viability of the SPR storage sites.
