Trump Administration Weighs 30 Million-Barrel California Oil Reserve as Hormuz Closure Drains 172 Million
Updated
Updated · POLITICO · Jun 5
Trump Administration Weighs 30 Million-Barrel California Oil Reserve as Hormuz Closure Drains 172 Million
1 articles · Updated · POLITICO · Jun 5
Summary
A proposed California strategic petroleum reserve is under active discussion, with planning documents outlining an initial 370,000-barrel site that could expand to 30 million barrels.
Energy Secretary Chris Wright framed the idea as a national-security move for an energy-isolated West Coast, where limited pipeline links and high fuel prices leave military bases and refineries more exposed to disruptions.
The push comes as the administration is releasing 172 million barrels from the existing federal reserve in Texas and Louisiana to cushion price shocks after the Strait of Hormuz closed.
Sable, whose Santa Barbara oil operations the administration backed over California's objections, has emerged as a key ally in the effort, while Governor Gavin Newsom has criticized the company's ties to Washington.
Analysts say a California reserve may offer less benefit than advertised because the state has lost significant refining capacity, limiting how much stored crude can be turned into gasoline, diesel and jet fuel.