Oil Reserve

In response to a congressional request, GAO presented its quarterly review of the Department of Energy's (DOE) progress in developing, operating, and filling the Strategic Petroleum Reserve (SPR).

GAO found that: (1) as of September 30, 1987, the SPR inventory totalled 533.9 million barrels of oil; (2) during the quarter, DOE added 6.7 million barrels of crude oil at an average fill rate of 73,000 barrels per day; (3) for fiscal year (FY) 1987, DOE added a total of 27.5 million barrels at an average fill rate of 75,400 barrels per day; (4) DOE paid $132 million for oil purchases from the Mexican national oil company and obligated the $96 million remaining in its oil acquisition account; (5) Congress apportioned $59 million to DOE to fill SPR at a 75,000-barrel-per-day rate for about 80 days; (6) the House version of the FY 1988 appropriation bill provided funding to fill SPR at 75,000 barrels per day, while the Senate version increased funding to support 100,000 barrels per day; (7) DOE diverted oil at three sites to begin cavern leaching at two other sites; and (8) DOE planned oil distribution enhancements to increase SPR distribution capabilities and anticipated an early start on pipeline construction.