Lanterna Rally

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Published: 1993

Total Pages: 9

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The Strategic Petroleum Reserve serves as one of the most important investments in reducing the Nation's vulnerability to oil supply disruptions. This Quarterly Report highlights activities undertaken during the third quarter of calendar year 1993, including: inventory of petroleum products stored in the Reserve, under contract and in transit at the end of the calendar quarter; fill rate for the quarter and projected fill rate for the next calendar quarter; average price of the petroleum products acquired during the calendar quarter; current and projected storage capacity and plans to accelerate the acquisition or construction of such capacity; analysis of existing or anticipated problems with the acquisition and storage of petroleum products and future expansion of storage capacity; funds obligated by the Secretary from the SPR Petroleum Account and the Strategic Petroleum Reserve Account during the prior calendar quarter and in total; and major environmental actions completed, in progress, or anticipated. Samples of the oil revealed two problems that, although readily correctable, have reduced the availability of some of the oil inventory for drawdown in the near-term. These problems are: (1) a higher-than-normal gas content in some of the crude oil, apparently from years of intrusion of methane form the surrounding salt formation; and (2) elevated temperatures of some of the crude oil, due to geothermal heating, that has increased the vapor pressure of the oil. Investigations are proceeding to determine the extent to which gas intrusion and geothermal heating are impacting the availability of oil for drawdown. Preliminary designs have been developed for systems to mitigate both problems.