How can we build an oil reserve without offending the Saudis

Journal Article · Sat Jun 28 04:00:00 EDT 1980 · Natl. J.; (United States)

OSTI ID:7153609

Madison, C

Congress has ordered the Department of Energy to resume filling the strategic oil reserves at about the same 100,000 barrels of crude oil a day as the government fields at Elk Hills, California produce. Pressure to increase this amount while a world surplus exists will be strong, even though members of the Organization of Petroleum Exporting Countries (OPEC) have threatened to reduce their production if the US takes such action. The concept of a strategic reserve of 750 million barrels (a 90-day supply) first emerged as a way to separate foreign-policy decisions from foreign-oil supplies. The present level of 92 million barrels (12-13-days imports), however, has made the reserve a political issue. Delays were caused by a combination of site problems, budget cuts, market disruptions, and policy changes. The debate centers on timing - when the US should return to the market to continue filling the storage sites. US relations with Saudi Arabia are sensitive to Middle East peace agreements, the security of Saudi Arabian territory, and the security of Saudi Arabian production levels. The foreign-policy implications and their severity are disputed. (DCK)

• OSTI ID: 7153609
• Journal Information: Natl. J.; (United States), Journal Name: Natl. J.; (United States) Vol. 12:26; ISSN NAJOD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
024000 -- Petroleum-- Storage-- (-1989)
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
ASIA
FOREIGN POLICY
GOVERNMENT POLICIES
INSTITUTIONAL FACTORS
INTERNATIONAL ORGANIZATIONS
OIL-EXPORTING COUNTRIES
OPEC
POLITICAL ASPECTS
RESERVES
RESOURCES
SAUDI ARABIA
STORAGE
STRATEGIC PETROLEUM RESERVE
UNDERGROUND STORAGE