Strategic Petroleum Reserve

The Department of Energy's (DOE) fiscal year 1981 appropriation provided that the President should seek to fill the Strategic Petroleum Reserve (SPR) at an average annual rate of at least 300,000 barrels per day or at a rate which will fully utilize appropriated funds. DOE is implementing a three-phase construction plan in order to achieve a total oil storage capacity of 750 million barrels by 1989. GAO has concluded that DOE has enough existing capacity to fill SPR at a 100,000-barrels-per-day rate through fiscal year 1983. Any early effort to fill SPR at the rate of 300,000 barrels per day will require complementary efforts to insure alternative storage capacity or to accelerate the completion of planned capacity. GAO has previously recommended that the Secretary of Energy: (1) set specific goals for filling SPR during 1981 and succeeding fiscal years consistent with congressional intent; and (2) insure that adequate storage capacity is available on a timely basis to meet the needs of an accelerated SPR fill effort. GAO has also recommended that the Secretary report to Congress on: (1) the costs, advantages, and disadvantages of an accelerated construction program and other storage options; and (2) the feasibility and appropriateness of SPR financing mechanisms which may be used to reduce financing through appropriated funds.