Strategic Petroleum Reserve annual report for calendar year 1998.

The Strategic Petroleum Reserve was established in 1975 as an emergency response to the 1973 Arab oil embargo. It is authorized by the Energy Policy and Conservation Act (EPCA), and by the comprehensive energy plans of all Administrations since 1975, in recognition of the long-term dependence of the US on imported crude oil and petroleum products. Section 165 of EPCA requires the Secretary of Energy to submit an Annual Report to the President and the Congress. On May 13, 1998, the Department published a Statement of Administration Policy which reaffirmed its commitment to maintain a Government-owned and controlled, centrally located Strategic Petroleum Reserve of crude oil. The Reserve is to be used solely for responding to the types of severe oil supply interruptions presently contemplated in EPCA. Over the past twenty years, the Reserve has grown as large as 592 million barrels--a peak reached in 1994. From 1994 to 1996, nearly 28 million barrels were sold to raise revenues for the U S Treasury. As of December 31, 1998, the crude oil inventory was 561,108,127 barrels which equated to 60 days of net oil imports during 1998. The US now relies on a combination of both the Reserve and private stocks to meet its oil storage obligations to the International Energy Agency.