Caves

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A large amount of oil is stored in caverns under Louisiana and Texas

In The Wake of the attack on the main Saudi Arabian oil infrastructure, which U.S. officials have spoken of drawing on a huge emergency stash of oil to be kept in the United States .

As oil prices Spike, the President, Donald Trump tweeted, you could be in the oil, "so the markets are well supplied".

The oil that he referred to, amounts to More Than 640 million barrels stored in salt caverns under The States of Texas and Louisiana. The idea of these "strategic reserves" dates back to the 1970s.

All members of The International energy Agency, you have to hold the equivalent of 90 Days , the value of petroleum imports, but the US stockpile is the largest emergency store in The World .

Why was it Set Up ?

American politicians first came up with the idea of an oil-stocks in the early 1970s, after an oil embargo by Middle East Nations caused it to explode, the prices and all over The World .

members of the organization of Arab petroleum Exporting countries, including Iraq, Kuwait, Qatar, and Saudi Arabia Refused to export oil to the US because it supported Israel in the 1973 Arab-Israeli War .

The embargo came as a result of the Arab-Israeli War of 1973, also known as the Yom Kippur War

The War lasted only three weeks in October this year. But the embargo also against other countries - lasted until March 1974, the prices to quadruple from about $3 to nearly $12 per barrel.

pictures of cars queue at gas stations in the affected Nations some of the most important pictures of The Crisis .

The US Congress passed the Energy Policy and Conservation Act of 1975. It is the Strategic petroleum Reserve in The Event of another major supply problem.

What is the reserve?

currently there are four sites where oil is stored: in the vicinity of Freeport and Winnie in Texas, and outside of Lake Charles , and Baton Rouge in Louisiana.

Each page has a number of people made salt caverns up to a kilometre (3300 ft) underground, where the oil is stored. This is far cheaper than to keep it in tanks above the ground, and safer

The largest facility in Bryan Mound, near Freeport, a storage capacity equivalent to 254 million barrels of oil.

The reserve on the website says that in these Caves .

According to the U.S. Energy Information Administration - which means there is to keep enough oil, the country will for the 31 days.

How does it work?

Under The 1975 act, under Ford,

Physical limitations, signed by Gerald mean only a small amount of oil can be moved from the Caves every day, so even if there was presidential authority for the release of oil-it would be nearly Two Weeks to beat the markets.

In addition, the oil is unrefined all. It would need to be processed to fuel, it would be useful for cars, ships and planes.

in The Wake of the attacks in Saudi Arabia .

Is it used often?

if the disruption caused by the Arab Spring uprisings prompted the IEA to reduce member States to release a total of 60 million barrels of oil interruptions in the power supply.

The United States has millions of barrels of oil stored in underground salt caverns near The Gulf of Mexico

But, the sold it to US, from a large number of barrels on a couple of occasions. President George H W Bush has authorised its use during The Gulf War in 1991, while his son George W Bush allowed the sale of 11 million barrels in the aftermath of Hurricane Katrina .

But to keep the usefulness of such a huge reserve, at a time When U.S. energy production is booming in question. Some in Washington have even recommended to get rid of it completely.

A report by the Government Accountability Office suggested that in the year 2014 to say. In the year 2017 to combat the Federal Deficit .

Under President Bill Clinton , 28 million barrels were sold to decrease starting in 1997, as part of a movement, the Deficit .

oil, united states, louisiana, texas, saudi oil drone attack

Source of news: bbc.com