Every time oil is extracted from the U.S. Strategic Petroleum Reserve, the more unstable the system likely becomes, reports 10/12 Industry Report in its latest issue. That’s because the man-made network of salt dome caverns, scattered along the Gulf Coast in Texas and Louisiana, was designed with an expected 25- to 30-year life span and intended only to be used during severe market disruptions.
Now at 50-plus years old, the SPR has been used dozens of times, and as of August held only about 290 million barrels in total, which is near a record low.
As a result, industry insiders say, age and over-use are catching up to all four sites—Bayou Choctaw and West Hackberry in Louisiana and Big Hill and Bryan Mound in Texas. Read more from 10/12 Industry Report.
