Oil insurance policy that may lapse

Journal Article · Fri Aug 10 04:00:00 EDT 1979 · Science (Washington, D.C.); (United States)

OSTI ID:6720407

A discussion showed that nearly $7 billion has been appropriated for the U.S. Department of Energy's (DOE) Strategic Petroleum Reserve since 1975. This reserve will consist of 750 million bbl of crude oil stored in Gulf Coast salt domes. Some $1.4 billion will cover most of the development cost for the first 528 million bbl of storage capacity and the associated oil handling facilities. The remaining $5.6 billion will be a downpayment on the total cost of the oil needed to fill the reserve, now estimated by the U.S. Office of Management and Budget at $19 billion. However, as of Aug. 1979, there was Vertical Bar3; 90 million bbl of oil in storage, and no oil has been purchased for the reserve since late 1978. According to DOE, for the reserve to be filled to its planned capacity by the end of 1986, 250,000 bbl/day of oil must begin flowing into it by Nov. 1979, and this rate must be maintained continuously for seven years. Storage capacity for 250 million bbl will be available late in the fall of 1979, and installation of another 280 million bbl of capacity will be well under way. The storage of oil in salt domes is also discussed.

• OSTI ID: 6720407
• Journal Information: Science (Washington, D.C.); (United States), Journal Name: Science (Washington, D.C.); (United States) Vol. 205:4406; ISSN SCIEA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
024000* -- Petroleum-- Storage-- (-1989)
CAPACITY
COST
ENERGY SOURCES
FOSSIL FUELS
FUELS
GEOLOGIC DEPOSITS
GULF COAST
NATIONAL ORGANIZATIONS
NORTH AMERICA
PETROLEUM
RESERVES
RESOURCES
SALT DEPOSITS
SCHEDULES
STORAGE
STORAGE FACILITIES
STRATEGIC PETROLEUM RESERVE
UNDERGROUND STORAGE
US DOE
US ORGANIZATIONS
USA