US Strategic Petroleum Reserve Could Decline by Nearly Half in a Decade Due to Recent Legislation, EIA Reports

The US' Strategic Petroleum Reserve could decline by nearly half by the start of fiscal 2032, the lowest level since March 1983, after taking into account newly passed legislation and the White House's recent announcement of a coordinated release, the US Energy Information Administration said in a Monday report.

The White House plans to release 50 million barrels of crude oil into the market through exchanges and the acceleration of sales. Including this and several other legislated drawdowns, SPR inventories could fall to about 314 million barrels in 2032 from 618 million barrels as of Oct. 1, the EIA said.

The Infrastructure Investment and Jobs Act passed in early November includes a provision to draw down 87.6 million barrels from the SPR in fiscal years 2028 through 2031, according to the EIA.

The reserve was designed to hold up to 714 million barrels of crude oil across four storage sites along the Gulf of Mexico. Releases from the SPR should fall under four conditions: emergency drawdowns, test sales, exchange agreements and nonemergency sales. The first two are relatively rare, the agency noted.