Australia’s first emergency oil depot will be held in strategic US oil reserves.
Australia buys 1.5 million barrels of US crude at low prices and stores it in the Gulf Coast Caverns . This volume is less than 1% of the SPR capacity of 714 million barrels.
In April, Australia reached a final agreement with the United States to set up an emergency oil depot abroad.
Australia has said it will spend $ 94 billion to buy crude at current low prices and store it in the SPR for a ten-year period, and has had the plan since 2018.
The US has signed a similar memorandum with the Indian oil minister to build a similar overseas SPR at US facilities.
When oil prices fell in March, the DOE hoped to increase the government’s crude oil reserves by paying $ 3 billion, but Democrats in Congress rejected the plan and leased the space agency to private oil companies.
According to the latest EIA data, SPR shares have risen from 21.2 million barrels to 176.16 million barrels, and the stock holds another 56.4 million barrels, not including Australia.
