Representatives Lizzie Fletcher (D) and August Pfluger (R) introduced a bipartisan bill directing the Department of Energy to study ways to modernize the Strategic Petroleum Reserve (SPR) as U.S. oil inventories reach their lowest level in decades.
Bipartisan push to strengthen the SPR
Reps. Fletcher and Pfluger introduced the 21st Century Strategic Petroleum Reserve Act, legislation that would require a public report examining how the federal reserve could be modernized to better respond to future disruptions in global oil supplies.
"Energy security is essential to national security, and the Strategic Petroleum Reserve is one of the most important tools we have to ensure it," Rep. Fletcher said.
The SPR was created following the 1973 Arab oil embargo and stores crude oil in underground salt caverns in Texas and Lousisana.
The reserve faces increased strain
The SPR has undergone two major emergency drawdowns in recent years. The first followed Russia's invasion of Ukraine in 2022, when 180 million barrels were released. The current war involving Iran and the closure of the Strait of Hormuz have created another major disruption to global oil markets.
The reserve is now below half of its total capacity and at its lowest since the early 1980s. A recent Government Accountability Office report also found that the federal government lacks a unified long-term strategy for the reserve, including its target size and infrastructure needs.
What the bill would study
If enacted, the bill would direct the National Petroleum Council to produce a public report examining potential improvements, including:
- Expanding storage capacity and geographic distribution.
- Adding gasoline and diesel storage alongside crude oil.
- Finding non-emergency mandated sales.
- Improving infrastructure resilience and pipeline flow capacity.
- Increasing the rate at which the SPR can be refilled.
- Encouraging purchases when oil prices are low.
The Bottom Line
Fletcher and Pfluger say the study would provide Congress with recommendations for ensuring the SPR can continue protecting U.S. energy security as global supply disruptions become more challenging.
