CargoAdmin, Bureaucrats, Moderators (CommentStreams), fileuploaders, Interface administrators, newuser, Push subscription managers, Suppressors, Administrators
14,662
edits
Strategic Petroleum Reserve: Difference between revisions
m
Text replacement - "George W. Bush" to "George W. Bush"
m (Text replacement - "Reuters" to "Reuters") |
m (Text replacement - "George W. Bush" to "George W. Bush") |
||
| Line 45: | Line 45: | ||
===Domestic actions=== | ===Domestic actions=== | ||
On November 13, 2001, shortly after the [[September 11 terrorist attacks]], President | On November 13, 2001, shortly after the [[September 11 terrorist attacks]], President George W. Bush announced that the SPR would be filled, saying, "The Strategic Petroleum Reserve is an important element of our Nation's [[energy security]]. To maximize long-term protection against oil supply disruptions, I am directing the Secretary of Energy to fill the SPR up to its {{convert|700|Moilbbl|m3}} capacity."<ref>{{cite news |url = https://georgewbush-whitehouse.archives.gov/news/releases/2001/11/20011113.html |title = President Orders Strategic Petroleum Reserve Filled |publisher = White House Office of the Press Secretary |date = November 13, 2001 |access-date = December 26, 2014 }}</ref> The highest prior level was reached in 1994 with {{convert|592|Moilbbl|m3}}. At the time of President Bush's directive, the SPR contained about {{convert|545|Moilbbl|m3}}. Since the directive in 2001, the capacity of the SPR has increased by {{convert|27|Moilbbl|m3}} due to natural enlargement of the salt caverns in which the reserves are stored. The [[Energy Policy Act of 2005]] has since directed the [[United States Secretary of Energy|Secretary of Energy]] to fill the SPR to the full {{convert|1|Goilbbl|m3}} authorized capacity, a process which will require a physical expansion of the Reserve's facilities. | ||
On August 17, 2005, the SPR reached its goal of {{convert|700|Moilbbl|m3}}. Approximately 60% of the crude oil in the reserve is the less desirable sour (high [[sulfur]] content) variety. The oil delivered to the reserve is "royalty-in-kind" oil—royalties owed to the U.S. government by operators who acquire leases on the federally owned [[Outer Continental Shelf]] in the [[Gulf of Mexico]]. These royalties were previously collected as cash, but in 1998 the government began testing the effectiveness of collecting royalties "in kind"—or in other words, acquiring the crude oil itself. This mechanism was adopted when refilling the SPR began, and once filling is completed, revenues from the sale of future royalties will be paid into the federal treasury. | On August 17, 2005, the SPR reached its goal of {{convert|700|Moilbbl|m3}}. Approximately 60% of the crude oil in the reserve is the less desirable sour (high [[sulfur]] content) variety. The oil delivered to the reserve is "royalty-in-kind" oil—royalties owed to the U.S. government by operators who acquire leases on the federally owned [[Outer Continental Shelf]] in the [[Gulf of Mexico]]. These royalties were previously collected as cash, but in 1998 the government began testing the effectiveness of collecting royalties "in kind"—or in other words, acquiring the crude oil itself. This mechanism was adopted when refilling the SPR began, and once filling is completed, revenues from the sale of future royalties will be paid into the federal treasury. | ||