facebook
twitter
rss
account
search
search
 

Storing oil worth it, IEA says

Global benefit valued at around $3.5 trillion.
By Daniel J. Graeber   |   June 25, 2014 at 10:39 AM   |   Comments

| License Photo
PARIS, June 25 (UPI) -- A study from the International Energy Agency in Paris finds that storing oil in emergency stockpiles does more than support energy security.

The 29 members of the IEA are mandated to hold enough oil in emergency stockpiles to meet 90 days worth of imports. A report published Wednesday finds those stocks not only help support energy security for member states but also save them money.

The review "valued the stockpiles' global benefits over 30 years at about $3.5 trillion."

At the end of March, IEA said member states had about 4.1 billion barrels of oil stored in emergency stockpiles. That represents about 44 days of the total global demand for oil, which IEA said provides a safety valve in the event of a major supply disruption.

IEA found the benefits of storing emergency reserves offset the expense. Member states spend on average $8.5 per barrel of oil stored.

Each barrel of oil stored translates to a net global benefit of $41 per year, after storage costs.

IEA said its estimates were conservative.

Follow @dan_graeber and @UPI on Twitter.
Contact the Author
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Russia completes helicopter deliveries to Afghanistan Russia completes helicopter deliveries to Afghanistan
2
Oryx Petroleum: Security improves in Kurdish north Oryx Petroleum: Security improves in Kurdish north
3
Gas capacity added to North Dakota shale Gas capacity added to North Dakota shale
4
Advocates blast TransCanada pipeline proposal Advocates blast TransCanada pipeline proposal
5
More solar power added to British grid More solar power added to British grid
Trending News
Around the Web
x
Feedback