As the Strategic Petroleum Reserve Hits a 40-Year Low, It's Time To Scrap It - Reason Magazine
As the Strategic Petroleum Reserve Hits a 40-Year Low, It's Time To Scrap It - Reason Magazine
Source: Reason Magazine
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DW NOTE
The Strategic Petroleum Reserve was created in 1975 to buffer against supply shocks. Since then, the US became the world's largest oil producer, fracking made supply disruptions temporary, and futures markets gave refiners hedging tools the SPR was supposed to replace. What remains is a 40-year-old price subsidy dressed up as security policy — one that cost taxpayers $450 million to drain in 2022 and will cost more to refill at $79.60 WTI.