Russia

US strategic oil reserve at risk – watchdog

RT English · 2026-07-02

AI SUMMARY

• What happened: The Government Accountability Office (GAO) reported that the US Strategic Petroleum Reserve (SPR) is at risk of failing to respond effectively to future energy crises due to aging infrastructure and record-low inventories. • Why it matters: Established in 1975 as an emergency buffer against oil supply disruptions, the SPR's current capacity has declined significantly, raising concerns about its ability to meet future demands amid ongoing global energy challenges. • What to watch next: The ongoing Life Extension Phase 2 project aimed at modernizing the SPR's facilities, as well as potential investments and strategic planning needed to address the reserve's maintenance backlog and operational limitations.

**US Strategic Oil Reserve Faces Growing Risks, GAO Warns**

The United States Strategic Petroleum Reserve (SPR) is increasingly at risk of being unable to effectively respond to future energy crises due to aging infrastructure and historically low inventories, according to a recent report from the Government Accountability Office (GAO). Established by Congress in 1975 in the wake of the Arab oil embargo, the SPR was designed to serve as an emergency buffer against significant disruptions in oil supply.

The SPR, which has the theoretical capacity to hold over 700 million barrels of crude oil in underground salt caverns located along the Gulf Coast in Texas and Louisiana, has been heavily utilized in recent years. The GAO report, released earlier this week, reveals that as of December 2025, the reserve's effective oil withdrawal capability had declined to approximately 61% of its original design capacity. Furthermore, its refill capability was reported at just 56%. Notably, over a quarter of the oil stored in the reserve was rendered temporarily unavailable due to ongoing construction and cavern outages.

Since 1985, the SPR has supplied more than 500 million barrels of crude oil, with nearly 70% of this volume being drawn down between 2014 and 2025. A significant 180-million-barrel emergency withdrawal occurred in 2022 in response to the escalation of the conflict in Ukraine, testing the reserve’s capabilities. More recently, in March 2026, the Department of Energy initiated a further 172-million-barrel release following the outbreak of the US-Israeli war in Iran, which led to a surge in crude prices and disruptions in global oil supplies. As of late June, the SPR's inventory had dwindled to just 325.7 million barrels, marking its lowest level since 1983.

The GAO report raises concerns that without substantial upgrades, the SPR may not be able to meet future drawdown directives effectively. Much of the reserve's infrastructure is over 40 years old, with critical components such as pumps, pipelines, and valves installed during the late 1970s and 1980s now operating well beyond their intended lifespan. The GAO emphasized that investments in the SPR have not kept pace with the aging reserve's needs, warning of "looming operational limitations" due to deteriorating infrastructure, maintenance backlogs, and reduced operational capacity.

Additionally, the Department of Energy has not revised its long-term strategy for the SPR since 2016, despite significant changes in global energy markets and multiple large-scale emergency drawdowns. The GAO highlighted the ongoing Life Extension Phase 2 project, which aims to modernize the SPR's aging facilities. However, this decade-long initiative has faced delays and reductions in scope. Current estimates from the Department of Energy indicate that addressing the existing maintenance backlog would require approximately $230 million.

As the nation grapples with the implications of these findings, the future effectiveness of the SPR as a critical energy resource remains uncertain. The GAO's warnings underscore the necessity for timely investments and strategic planning to ensure that the reserve can fulfill its intended purpose in times of crisis.

Source: RT English
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