US Oil Reserve Hits 44-Year Low Amid Global Energy Shortage

The US Strategic Petroleum Reserve (SPR) has reached its lowest level since 1982, according to data from the Department of Energy. The reserve shrank by over 3 million barrels of oil in the week ending August 28, leaving it at 286.6 million barrels or approximately 40% of overall capacity.

The SPR provides an emergency source of oil to protect the US against a sudden supply crunch. It is stored in large underground salt caverns along the Gulf Coast, and can reach up to 714 million barrels. The president has discretion to release oil from the reserve when certain conditions are met, such as a global energy shortage.

The Iran war and resulting global energy shortage have led to a significant drawdown of the SPR. In response, the US released 128 million barrels of reserve oil since the war began, according to data compiled by the U.S. Energy Information Administration.