The Strategic Petroleum Reserve (SPR) was established 40 years ago to protect America from another OPEC oil embargo. With that in mind, the federal government pumped 750 million barrels of oil into salt caverns beneath Louisiana and Mississippi for safekeeping.
But the truth is we have rarely tapped the SPR in the four decades it’s been in existence. The most we’ve ever drawn out at one time was 17 million barrels during Operation Desert Storm. That’s barely two percent.
Sounds to me like it’s time to discuss the future of the SPR. We need to use it strategically as a resource to reduce our dependence on foreign oil while developing our own resources.
Watch my latest BooneCam for more of my thoughts on this issue, and then send me a Tweet @BoonePickens with your thoughts.