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Energy researchers<\/a> like me know that the concept of a strategic oil stock goes back to the early 20th century, when the U.S. Navy first substituted oil for coal<\/a> as a fuel for ships. Starting in 1912, Congress set aside several petroleum-rich areas in the U.S.<\/a>, including Elk Hills in California and Teapot Dome in Wyoming<\/a>. In times of need, oil wells could be drilled in those regions to produce fuel for the Navy.<\/p>\n The current system involves oil that has already been produced and is stored so it can enter the market quickly. That approach was created by the International Energy Agency soon after its founding in the wake of the 1973-74 oil crisis. At that time, Arab nations in the Organization of the Petroleum Exporting Countries cut exports by as much as 25%<\/a> to protest U.S. and other countries\u2019 support for Israel<\/a> in the Yom Kippur War. Global oil prices soared by over 350%<\/a>, the equivalent today of US$70\u2014the price before Israel and the U.S. attacked Iran<\/a> on Feb. 28, 2026\u2014jumping to $245.<\/p>\n Now, strategic reserves are a system of national oil stocks<\/a> intended to replace at least 90 days of each country\u2019s imports. In some cases, such as Japan<\/a>, the reserve covers over 200 days. The 415 million barrels<\/a> in the U.S. reserve as of March 13, 2026, covers only about 64 days.<\/p>\n<\/div>\n These reserves have a twofold purpose: to replace a portion of the disrupted supply and to moderate the resulting increase in prices.<\/p>\n In cases of a major loss to world supply, the International Energy Agency will propose a coordinated release from member countries. There have been five such releases, most recently in 2022<\/a>, when Russia\u2019s invasion of Ukraine caused oil prices to go above $120.<\/p>\n Together, members hold<\/a> government stockpiles of about 1.2 billion barrels, with another 600 million barrels stored by private industry<\/a>. The United States\u2019 expected contribution of 172 million barrels<\/a> is nearly half of the upcoming release.<\/p>\n<\/div>\nWhat is the purpose of strategic oil reserves?<\/h2>\n