(SEATTLE) In the second week of the Iran war – with the Strait of Hormuz effectively closed, cutting off shipping of 20% of the world’s oil supply – the International Energy Agency announced the largest release of strategic oil reserves in history. Thirty-two countries will sell a combined 412 million barrels from their reserves into the global market over four months, beginning in late March 2026.
Energy researchers 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 as a fuel for ships. Starting in 1912, Congress set aside several petroleum-rich areas in the U.S., including Elk Hills in California and Teapot Dome in Wyoming. In times of need, oil wells could be drilled in those regions to produce fuel for the Navy.
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