Massive US Oil Caverns Sit Empty and Will Take Years to Refill
Ari Natter
Mon, July 17, 2023 at 4:00 AM CDT
(Bloomberg) -- Stroll through the West Hackberry oil facility on the US Gulf Coast and there’s not much to see: some pipelines and other industrial equipment. But buried deep beneath the surface are storage caverns so massive they’re tall enough to house the Empire State Building with plenty of room to spare.
These reserve sites are supposed to hold enough backup supply to ensure the US never runs short of oil. Right now, they’re sitting half empty.
It only took about six months for the Biden administration to sell off 180 million barrels from the federal stash in the fastest withdrawal on record. But refilling it to capacity will likely take decades, if it happens at all. Experts say that a lack of funding and aging infrastructure will plague the process, even as the Energy Department has pledged to keep buying.
In the meantime, with the reserve at its lowest level in 40 years, the US could be vulnerable to oil price shocks. It also means that during domestic supply crunches, the nation will be left to the mercy of global exporters like Saudi Arabia, Russia and the rest of the OPEC+ cartel. The issue has also created yet another political firestorm, as Republicans have blasted the Biden Administration for its record drawdown.
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