US Oil Reserves at Historic Low Amid Iran War Withdrawals
The US Strategic Petroleum Reserve has hit its lowest level in 40 years due to ongoing withdrawals for the war with Iran, with experts warning that repeated rapid drawdowns could permanently damage the underground caverns holding crude oil.
The current release of 172 million barrels will leave the reserve at roughly 243 million barrels upon completion, below the practical operational floor of 250-300 million barrels. At this level, the risk of structural damage increases and the system loses its ability to pump oil at high speeds.
Petroleum engineering professor Siddharth Misra of Texas A&M University notes that repeated injection of water and extraction of oil have caused severe cavern deformation and weakened the overall structural integrity of the aging reserve. The reserve was designed to handle five full drawdowns over its lifespan, but it has undergone dozens of cycles in 40 years.
The Department of Energy rejected claims that the facilities were at risk, stating that assertions regarding cavern collapse were false. However, market analysts at Rapidan Energy estimated the reserve's functional minimum sits around 170 million barrels after which 'cavern integrity and pumping infrastructure limitations argue against further draws.'