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US to sell off oil stockpile

President Donald Trump's proposal to sell nearly half the U.S. emergency oil stockpile is sparking renewed debate about whether the Strategic Petroleum Reserve is still needed amid an ongoing oil production boom that has seen U.S. imports drop sharply in the past decade.

Trump's budget, unveiled on Tuesday, calls for selling an additional 270 million barrels of oil over the next decade, raising an estimated $16.6 billion. The proposal, on top of planned auctions expected over the next few years, could push the reserve below 300 million barrels by 2025. It now is at 688 million barrels.

The petroleum reserve, created in the wake of the 1970s Arab oil embargo, stores oil at four underground sites in Texas and Louisiana. The reserve guards against disruptions in the flow of oil from the Middle East and other countries, and lawmakers from both parties have long warned against using it to raise money.

But some Republicans say North Dakota's oil-rich Bakken region offers a de facto reserve that can be tapped if needed.

"You know the world's changed a lot in the last decade," said Rep. John Shimkus, R-Ill., a senior member of the House energy committee. "We're one of the largest oil producers in the world."

Asked if he was worried that Trump's proposal could deplete the reserve, Shimkus laughed. "Not when you have North Dakota and the Dakota (Access) Pipeline," he said.



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