US SPR faces existential crisis

As the 50th anniversary of the Arab oil embargo approaches, policymakers gripped by energy security fears must start rethinking the purpose of emergency oil stocks

The 1973–74 Arab oil embargo caused oil prices to skyrocket and prompted consuming nations to set up emergency reserves and the IEA. While these stockpiles are a crucial insurance policy for OECD economies, the US is no longer so dependent on imports and has changed the way it uses its strategic petroleum reserve (SPR). To refill or not to refill is now the question. The 2022 shock and awe tactic of releasing 180m bl from the SPR was the largest ever, undertaken from a starting reserve level of about 600m bl. For collective action (emergency drawdown), each member country’s contribution is proportionate to its share of total oil consumption. While IEA rules require each member state to hold