HOUSTON, Feb. 21 (Xinhua) -- U.S. Strategic Petroleum Reserve (SPR) in fiscal years 2022 through 2027 could decline by about 40 percent, according to U.S. Energy Information Administration (EIA) on Wednesday.
The EIA said that based on legislated sales established in multiple acts of Congress, the SPR could decrease by 100 million barrels in the coming decade while still meeting requirements for petroleum import coverage.
The Bipartisan Budget Act of 2018, enacted this month, called for the sale of 30 million barrels over the four-year period of fiscal year 2022 through 2025, 35 million barrels in 2026, and 35 million barrels in 2027.
The Tax Cuts and Jobs Act of 2017, enacted in last December, called for the sale of seven million barrels over the two-year period of fiscal year 2026 through 2027.
The Congress enacted three bills in 2015 and 2016, which collectively call for the sale of 149 million barrels in fiscal year 2017 through 2025.
Assuming no other legislation over this period, the SPR could decline to about 410 million barrels at the start of 2028.
Located in four storage sites along the Gulf of Mexico, the SPR held more than 695 million barrels of crude oil at the beginning of 2017, or about 97 percent of its 713.5 million barrels design capacity. Prior to fiscal year 2017 sales, the SPR inventory level had remained nearly constant for several years.
Based on November 2017 levels of net crude oil and petroleum product imports, the SPR alone holds crude oil stocks equivalent to 252 days of import protection. Private (commercial) stocks of crude oil provide an additional 452 million barrels, equivalent to another 172 days of import protection.
The Reference case of EIA' s latest Annual Energy Outlook projects that the United States will be a net exporter of petroleum by 2029. Other cases with more domestic petroleum production show the United States reaching net petroleum exporter status even sooner.
