US Oil Reserves Plunge to Historic Low Amid Iran War Fears

The US Strategic Petroleum Reserve (SPR) is facing a crisis as its oil stockpile drops to its lowest level in 40 years. The reserve, which was designed to handle five full drawdowns over its lifespan, has undergone dozens of cycles over the past four decades.

According to Department of Energy data released Monday, SPR inventories have dropped below 300 million barrels for the first time since the initial fill in the early 1980s. The current release of 172 million barrels will leave the reserve at roughly 243 million barrels upon completion.

Energy experts warn that tapping the reserve so heavily threatens the structural integrity of its underground salt caverns. Petroleum engineering professor Siddharth Misra of Texas A&M University told CNBC that repeated rapid drawdowns wash away salt walls, creating flatter and less stable roofs and severely thinning critical salt pillars.

Misra noted that while 70 million barrels is the absolute threshold needed to keep intake pipes under oil rather than water, 'the practical operational floor for the crude inventory is between 250 million and 300 million barrels.' Below this level, the risk of structural damage increases while the system loses its ability to pump oil at high speeds.

The Department of Energy has dismissed concerns over structural damage, insisting that the reserve's salt caverns are being responsibly managed as a critical national security asset. However, government oversight reports highlight long-standing physical strain on the facility and warn of the risks associated with repeated partial drawdowns followed by refill.