August 25, 2017 / 8:22 PM / a month ago

FACTBOX-Emergency oil supplies and coordinated releases

    Aug 25 (Reuters) - As Hurricane Harvey closes in on U.S.
Gulf Coast energy infrastructure, backup resources are available
should oil and fuel production be halted and threaten shortages.
    The U.S. Strategic Petroleum Reserve (SPR), maintained
underground in Louisiana and Texas by the Department of Energy,
holds 678.9 million barrels of crude, which is enough to meet
total U.S. needs for 33 days. 
    The United States also has a gasoline reserve, created after
Hurricane Sandy in 2012. The Northeast Gasoline Supply Reserve
holds about 1 million barrels, stored in New York Harbor, Boston
and Maine. 
    The International Energy Agency's 29 member countries also
store petroleum, which can be made available in case of a supply
disruption. The Paris-based organization advises Western
governments on energy policy. 
    The IEA members' reserves include both crude and refined
products, which can be deployed in response to an international
disruption.
    The Gulf Coast is a major exporter of refined products to
Latin America and other regions, and any serious hurricane
damage to the region could have an impact on global supply.
    Releases from reserves can help avoid or moderate any price
spikes by bolstering supply that would otherwise be interrupted.
    The U.S. president can call for an emergency drawdown from
the SPR if the country is confronted with an
economically-threatening supply disruption. That was the case
after Hurricane Katrina in 2005, which shuttered major U.S. oil
producers and refiners.
    The SPR can also release oil in an exchange agreement, in
which it loans crude to a company, which later replaces the
crude and supplies the reserve with premium barrels as a form of
interest. 
    The table below lists key releases from stockpiles. 
    
    
 Agency         Release   Event       Details 
                Date                  
 IEA            Sept.     Hurricane   IEA made 2 million bpd of
                2005      Katrina     oil available for 30 days
 SPR            Aug.      Hurricane   SPR Loaned 1 million
                2012      Isaac       barrels of crude to
                                      Marathon Petroleum Corp.
 SPR            Sept.     Hurricane   SPR delivered 5,389,000
                2008      Gustav &    barrels of crude to five
                          Ike         companies whose normal
                                      supplies had been
                                      interrupted to the point
                                      that the companies could
                                      continue to operate,
                                      refine the crude oil into
                                      products, and deliver
                                      those products to U.S.
                                      consumers
 SPR              Jun-06  Calcasieu   SPR loaned 750,000
                          Ship        barrels of crude to
                          Channel     refiners unable to
                          Closure     receive deliveries while
                                      the shipchannel was
                                      closed
 SPR            Sept.     Hurricane   SPR loaned 9.8 million
                2005      Katrina     barrels to U.S. refiners
 
    
    
    
     

 (Reporting By Jessica Resnick-Ault; Editing by Tom Brown)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below