You don’t know why the United States has buried 700 million barrels of oil deep underground
Thread Content
You don’t know why the United States stored 700 million barrels of oil underground to cope with short-term shortages in oil supply and to protect its economic security; the U.S. has kept 700 million barrels of oil in reserve. More and more **have also invested in building or are currently building strategic oil reserve facilities. However, there are diverse opinions on how to effectively utilize strategic oil reserves in times of crisis. Currently, there are specialized companies offering relevant services to help customers make rational use of strategic oil reserves. Beneath four unassuming secure sites along the U.S. Gulf Coast, there are 60 rock salt wells that hold 700 million barrels of oil, forming the United States’ massive \"Strategic Petroleum Reserve\" (SPR). This facility was built 40 years ago; today, large-scale oil storage facilities can be found all over the world. In fact, many **billions of dollars have been invested in building such facilities, with even more** under planning. So why do these **all like to hide oil underground? The answer can be found in the energy crisis of 1973. In an effort to strike at their rival Israel and those who support it, Arab oil-exporting countries cut off oil supplies to the West, causing global oil prices to soar. At that time, crude oil prices rose from less than three dollars per barrel in 1973 to over 13 dollars per barrel; gasoline rationing was implemented at gas stations in the United States, and these stations often ran out of fuel. Out of fear that the gasoline in the car might be stolen, some people even used guns to protect it. A few years later, the United States began to build SPRs, digging holes to store crude oil. Should oil supplies suffer severe disruption, the United States can sell its reserves at higher prices to alleviate pressure on global markets. A certain **website claims: “Ultra-large oil reserves have effectively alleviated the pressure resulting from a sharp decline in oil imports, and they serve as an important tool in foreign policy.” ”It is a clever yet costly approach; this year, the SPR’s maintenance budget is 200 million dollars. Bob Corbin, the head of funding management at the U.S. Department of Energy, explained, “All storage sites are located in salt rock areas. Crude oil and salt do not mix or react with each other, making these locations highly suitable for storage.” ”Bob Corbin, who has worked for the U.S. Coast Guard for 22 years, is satisfied with these four storage sites that stretch from Baton Rouge in Louisiana to the small town of Freeport in Texas; he affectionately refers to these large rock salt storage facilities as “my caves.” “These storage sites are truly impressive.” However, from the ground, only some wellheads and pipes can be seen. Wellholes are salt wells that extend thousands of feet underground, and oil can be extracted by injecting water under high pressure. Corbin said that managing these facilities is a unique challenge. For example, salt wells are not very stable; sometimes, damage to the partitions or roof causes mechanical failure, and careful replacement is necessary. Workers cannot enter the storage room like they do when drilling oil wells; they can only operate it remotely. However, with special tools, it is possible to see the true appearance of the storage room. Corbin said, “When the storage room is empty, a 3D image of it can be obtained by regularly taking sonar images.” The shapes of some storage rooms are quite interesting; one of them looks like a giant flying saucer. ”Strategic oil reserves have helped the United States overcome difficulties in the past. For example, during the first Gulf War, U.S. oil installations in the Middle East were damaged. For another example, within 24 hours of Hurricane Katrina making landfall in 2005, applications for emergency fuel were approved immediately.
< Global Inventory > The United States is not the only country that has invested heavily in building strategic oil reserves. Japan has a network of storage sites, with over 500 million barrels of oil stored in large above-ground tanks. For example, the storage site in Shimushiro is located offshore. Following the earthquake and tsunami that hit Japan in 2011, there were calls within the country to increase strategic oil reserves to prevent future natural disasters from disrupting oil supplies again. The International Energy Agency (IEA) oversees most of the **oil reserves. Martin Young, head of the IEA’s Emergency Policy Department, said: “Those that sign a cooperation agreement with the IEA **have to fulfill many obligations, one of the key ones being that their oil reserves should equal 90 days’ worth of imports for that country. ”But not all **have underground salt wells, and not all** areas are large enough to build storage facilities specifically for SPR. In countries like the UK, neither of the above two conditions is met. Young explained, “In addition to storing oil for their own use, British oil companies also have an obligation to store oil **for reserve purposes**.” ”Companies keep **strategic oil reserves on hand, which can be accessed immediately if needed.** Neither India nor China is a member of the IEA; in recent years, both countries have invested in building their own SPRs. In particular, China has ambitious goals; it has established a variety of storage sites, with the ultimate aim of having **a total strategic and commercial reserve amount that is roughly equivalent to that of the United States. China has no salt wells, so it has to opt for more expensive above-ground oil tanks for storage. These places are easy to find on Google Maps and satellite images; they appear as a row of large white dots. One of them is the Zhenhai storage site, which is currently filled to capacity with 33 million barrels of oil. A few years ago, Young visited this place; “It’s very large, with many oil tanks, and several refineries are located nearby.” ”Narongpand Lisapahanya, an oil and gas analyst at CLSA Investment Group, said China’s only purpose in investing in SPRs is to be viewed by the international community as a superpower. He said with a smile, “To become a superpower, one must have strategic oil reserves.” ”While the world is busy building strategic oil reserves, a modern superpower without such reserves is incomplete. There are concerns that non-IEA countries may take advantage of appropriate opportunities to sell off their oil reserves, thereby manipulating global oil prices. Of course, the primary purpose of establishing SPR is to alleviate the pressure caused by soaring oil prices. Carmine Difiglio of the U.S. Department of Energy explained, “In 1975, the United States established strategic oil reserves to protect its economy during sharp increases in domestic oil product prices, and that remains the case today.” ”However, strategic oil reserves must draw a clear line between protecting the economy and manipulating the market. On this point, Martin Young emphasized: “Oil reserves are not meant to control prices, but to cover market shortages in the event of an oil supply disruption.” ”For a long time, there has been disagreement regarding how to use strategic oil reserves. Some believe that releasing strategic reserves is more aggressive, while others question whether the United States can make full use of its strategic reserves worth approximately $43.5 billion. Sarah Ladislaw of the Washington Institute for Strategic and International Studies said, “For some people, 700 million barrels of oil seems like a huge pot of money.” ”However, no one supports the United States or others in **fundamentally changing the way SPR is used. Countries **and the IEA should establish clear plans for the effective release of strategic reserves in case of emergencies or supply shortages. There are even specialized companies that assist with such planning; for example, EnSys has developed a complex computer model to simulate future price fluctuations in the oil industry. Therefore, EnSys can provide expert advice on the timing and reasons behind the Strategic Petroleum Reserve Management Center’s decision to supply oil to local refineries. EnSys CEO Martin Tallett explained that determining the amount of imported oil shortage during a crisis and the amount of strategic reserves that should be released to address that shortage is a matter of arithmetic. Tallett said, “We only conduct technical analyses based on numbers; we don’t waste time on the underlying causes of crises, such as geopolitical conspiracies.” ”**The energy industry continues to choose to be proactive, and strategic oil reserves will only keep increasing. Obviously, everyone **believes this to be a wise investment. In future crises, even with adequate preparation, it may still be impossible to allocate strategic oil reserves quickly and in sufficient quantities. Will history repeat itself? Tallett said, “I don’t want to speculate about whether it will happen again, because we are already prepared.” ”
China needs to accelerate the development of its strategic oil reserves; otherwise, with current low prices, oil tankers will continue to remain in the ports.
I read a report not long ago about U.S. oil reserves being stored underground.
Very little is known about China’s oil reserves; it’s not clear whether there are any reserves that have not been disclosed. At present, China’s oil reserves are relatively low, **and in recent years efforts have been made to build more oil storage facilities
American imperialism still harbors intentions to destroy us, and the same is true for little Japan; therefore, we must be fully prepared!
Oil reserves are extremely important for a major economy. In peacetime, adequate oil reserves can mitigate the impact of fluctuations in international oil prices, ensuring that the supply of petroleum products is affected as little as possible. During wartime, oil reserves can prevent temporary shortages of petroleum products resulting from oil transportation and refining from having an adverse impact on the course of the war. China has recognized the need for reserves of refined oil and crude oil in recent years, and has gradually increased such reserves as a precaution to deal with emergencies and potential protracted conflicts. Additionally, the technical capabilities for converting coal into oil represent an alternative to oil reserves, but this approach is costly and also vulnerable to strategic attacks by hostile countries.