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FACTBOX-U.S. oil releases from emergency reserves
August 31, 2017 / 2:08 PM / a month ago

FACTBOX-U.S. oil releases from emergency reserves

 (Updates with second release of oil to Phillips 66)
    WASHINGTON, Aug 31 (Reuters) - The U.S. Department of Energy said on
Thursday that it was releasing a total of 1 million barrels of oil from the
nation's emergency crude reserve in two equal batches to a Phillips 66
refinery in Louisiana after Tropical Storm Harvey shut refineries on the U.S.
Gulf Coast.
    The U.S. Strategic Petroleum Reserve (SPR), a series of underground caverns
in Louisiana and Texas operated by the Department of Energy, holds 678.9 million
barrels of crude, 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 can 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 it 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. 2005  Hurricane   IEA made 2 million bpd of
                            Katrina     oil available for 30 days
 SPR            Aug. 2017   Tropical    SPR loaned 1 million barrels
                            Storm       of crude to the Phillips 66
                            Harvey      Lake Charles refinery 
 SPR            Aug. 2012   Hurricane   SPR loaned 1 million barrels
                            Isaac       of crude to Marathon
                                        Petroleum Corp 
 SPR            Sept. 2008  Hurricanes  SPR delivered 5,389,000
                            Gustav &    barrels of crude to five
                            Ike         companies whose normal
                                        supplies had been
                                        interrupted to the point
                                        that they could not continue
                                        to operate, refine the crude
                                        oil into products, and
                                        deliver those products to
                                        U.S. consumers
 SPR             June 2006  Calcasieu   SPR loaned 750,000 barrels
                            Ship        of crude to refiners unable
                            Channel     to receive deliveries while
                            closure     the shipchannel was closed
 SPR            Sept. 2005  Hurricane   SPR loaned 9.8 million
                            Katrina     barrels to U.S. refiners
 
 (Reporting by Timothy Gardner and Jessica Resnick-Ault in New York; Editing by
Lisa Von Ahn and Tom Brown)
  

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