1. Petroleum Inventory Reserves Industry Inventories –For operational needs (pipelines, refineries, supply/demand) Strategic Petroleum Reserve (SPR) –Government controlled, emergency use

2. Strategic Petroleum Reserve 700 mmbo capacity at four salt domes in US Gulf Coast ( 545 mmbo in place in 2001 ). The SPR can hold approximately 70 days of oil imports at current demand.

5. Inflation-Adjusted Cost of Crude Oil

6. Strategic Petroleum Reserve Stocks

9. 2001 Oil Futures: Nymex

10. References SPR drawdowns trigger law of unintended consequences by Sarah Emerson,Oil&Gas Journal, Dec 10, 2001, p. 24-30.

11. SPR as Share of Domestic Stocks