“The federally-owned oil stocks are stored in huge underground salt caverns along the coastline of the Gulf of Mexico,” the agency’s website says.
It added that it has been used three previous times. The most recent time was in 2011 amid unrest in Libya that toppled longtime strongman Moammar Gadhafi.
President Obama at the time “directed a sale of 30 million barrels of crude oil,” it said.
“The Gulf of Mexico was a logical choice for oil storage sites. More than 500 salt domes, known to be an inexpensive and secure means of petroleum storage, are concentrated along the coast. Also, the Gulf Coast is the location of many U.S. refineries and distribution points for tankers, barges, and pipelines. In April 1977, the government acquired several existing salt caverns to serve as the first storage site. Construction of the first surface facilities began in June 1977,” the site says.
Saudi Arabia’s national oil company, Aramco, said it will cut oil production by about 5.7 million barrels per day, or nearly 50 percent, after drones hit the kingdom’s oil production, according tothe Wall Street Journal.
In August, the U.S. Energy Information Administration estimated that Saudi Arabia produced some 9.85 million barrels per day.
Saudi officials noware trying to restore about of third of lost oil output by Monday, Sept. 16, the WSJ also reported.
Meanwhile, Iranian officials dismissed any accusation that the regime was behind several attacks targeting oil facilities in Saudi Araba. U.S. Secretary of State Mike Pompeo said thatIranwas behind the assault.
“The Saudi-led coalition has been fueling the flames of war in the region; with recurrent acts of aggression against Yemen, and committing various war crimes for around five years, while Yemenis have proved that they stand against war and aggression,” Iranian Foreign Ministry spokesman Abbas Mousavi said, according toto the state-backed Tasnim News Agency.
Despite the denial, a general said the country is ready for a “full-fledged” war with the United States.
“Everybody should know that all American bases and their aircraft carriers in a distance of up to 2,000 kilometers around Iran are within the range of our missiles,” Amirali Hajizadeh, an Iranian commander, told Tasnim.