North America

US Strategic Petroleum Reserve nears level risking damage to storage caverns

The rapid drawdown of the US Strategic Petroleum Reserve could damage the underground salt caverns that store the oil, experts warn. The reserve is approaching a level that raises operational and structural concerns after years of steady withdrawals.

Industrial oil storage facility
Industrial oil storage facilityPhoto: Jan van der Wolf / Pexels
CNBC Top News1 h ago

Years of drawdowns from the US Department of Energy's strategic reserve have pushed storage levels toward a threshold that threatens the underground salt caverns in Texas and Louisiana where the oil is held. Energy experts say cavern walls can suffer structural damage when fill levels drop too low for extended periods.

The reserve has been tapped repeatedly in recent years, both to steady markets and to offset supply disruptions during geopolitical tensions. But persistently low levels could make it harder to refill or draw down the caverns quickly in a future emergency.

Experts say periods of lower oil prices should be treated as opportunities to rebuild the reserve. The Department of Energy said it is evaluating refill plans aimed at preserving the caverns' structural integrity going forward.

EnergyCommoditiesNorth AmericaCNBC Top News
This article is an AI-curated summary of the original story published by CNBC Top News. The illustration is a stock photo by Jan van der Wolf from Pexels and is not from the original story.

Read next