Economist Peter St. Onge raised concerns about the condition of the Strategic Petroleum Reserve (SPR) and how it has been used in recent years, arguing that previous decisions to draw down the reserve have left the United States with reduced flexibility during global energy tensions.

St. Onge discussed the issue while addressing the current state of the reserve during ongoing geopolitical instability in the Middle East.

The SPR, created in the 1970s, serves as the nation’s emergency oil stockpile intended to stabilize supply and prices during global disruptions.

“Democrats are hopping mad. We are at war in the Middle East, yet the Strategic Petroleum Reserve is a third empty which, to be fair, is a lot better than Los Angeles fire hydrant,” St. Onge said.

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The economist argued that the reserve was significantly reduced during the Biden administration and said the drawdown was tied to efforts to address rising gasoline prices before the 2022 midterm elections.

“Now this is fun, since it was Democrats who drained the reserve, most famously Joe Biden, who pawned half the reserve in order to buy the 2022, midterm elections,” St. Onge said.

According to St. Onge, the speed at which oil was released from the reserve created long-term complications for the system designed to move oil in and out of the storage caverns.

“In fact, he drained it so fast he permanently damaged the pipes, so it would now take seven years to refill,” St. Onge said.

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He also argued that congressional Democrats had previously declined opportunities to expand the reserve during a period when oil prices dropped sharply during the early stages of the COVID-19 pandemic.

“Meanwhile, Democrat Congress spent years starving the reserve, even in early covid, when oil prices were literally negative,” St. Onge said.

At the time, oil prices briefly fell below zero in April 2020 due to a collapse in demand and storage capacity limits.

St. Onge said industry groups encouraged lawmakers to purchase oil for the reserve during that period.

“The US Oil and Gas Association shared a heartwarming anecdote during early covid, when oil prices literally went negative $37 because oil storage and tankers were stuffed full,” St. Onge said.

He continued, “At the time, they urged Democrat Congress to buy since you were literally getting paid to buy us. Oga said Democrats quote told us to f off, literally.”

The Strategic Petroleum Reserve was originally created in 1977 following the energy crises of the 1970s. Its purpose was to provide a buffer against disruptions in global oil supplies, particularly those involving the Middle East.

“So the background is America's strategic petroleum reserve was built in 1977 to insulate oil prices from a Middle East war,” St. Onge said.

The reserve was originally designed to store more than 700 million barrels of oil. At the time, that amount represented roughly 100 days of U.S. oil imports.

“Was originally built for a little over 700 million barrels, which at the time was 100 days of imports,” St. Onge said.

The system was designed with a technical feature intended to allow oil to be released quickly during emergencies while making the process of refilling the reserve slower.

“It was built with asymmetric pipes, so it dumps fast, but fills seven times slower,” St. Onge said.

The design allowed the reserve to respond rapidly to supply crises while gradually restoring stockpiles during stable periods.

“The logic being you fill it gradually, but in a crisis, you need it fast,” St. Onge said.

According to St. Onge, it took nearly three decades for the reserve to reach its full capacity.

“In fact, it took close to 30 years to fill 2005 and then it stayed full around 600 to 700 million barrels, all the way to Joe Biden,” he said.

He argued that the reserve was then used to address rising fuel costs ahead of the 2022 midterm elections.

“Who found the perfect emergency for the reserve the 2022 midterm elections, when federal spending launched double digit inflation that risked an election Wipeout for Democrats in just six months,” St. Onge said.

He continued, “Biden dumped 200 million barrels to manipulate gas prices.”

St. Onge also noted that the timeline of the drawdown coincided with Election Day.

“Fun fact, the dump literally ended on Election Day, which is cynical even for Washington,” he said.

According to St. Onge, the rapid drawdown created additional limitations on how quickly the reserve could be restored.

“The dump was so fast it permanently damaged the pipe. So filling it is not seven times slower. Now it is 40 times slower,” he said.

Despite those concerns, St. Onge said the United States currently remains in a relatively strong position due to increased domestic oil production.

“Despite all that, we're actually in surprisingly good shape, because we're drilling a lot more oil than in 1977,” St. Onge said.

He added that even with the reduced reserve levels, the country maintains significant energy security buffers.

“So even after Biden had his way with the reserve, we've got close to 200 days of net imports and close to four years of Middle East oil,” he said.

St. Onge also pointed to the broader purpose of the reserve beyond preventing shortages.

“We won't see gas lines, but the reserve is not just about shortages,” he said.

“It's about being able to smooth out oil prices when they go crazy.”

He referenced recent market volatility as an example of when additional reserves could help stabilize energy markets.

“Like, say, last weekend, when oil moved 25% in a matter of hours,” St. Onge said.

In those situations, he argued, additional stockpiles could play a stabilizing role.

“It's there that a couple 100 extra barrels would be nice to have,” he said.

St. Onge concluded by criticizing political responses to the issue.

“No thanks to Democrats who are now crying the loudest,” he said.

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