Summary: GAO discussed the Nation's preparedness for dealing with energy supply disruptions. Currently, the Strategic Petroleum Reserve (SPR) is the only real option available to cope with a major supply disruption. Over the past 2 years, the administration has made progress in filling and expanding the SPR. About 185 million barrels a day (MBD) of crude oil were added to the SPR over fiscal years (FY's) 1981 and 1982. In 1983 the administration expects to fill the SPR at the rate of 220 MBD. The proposed fill rates for FY 1984 through 1986 are considered below 220 MBD and delay by 2 years the achievement of a 500 million barrel reserve. The administration's budget proposal would also delay construction of permanent storage for the final 150 million barrels of the planned 750 million barrel reserve. While SPR use planning is clearly advantageous, GAO pointed out in past reports and testimony that the administration has not adequately addressed many crucial policy questions of when and how the SPR would be used. The administration's recently issued SPR Drawdown Plan and SPR Distribution Report provides little specific information about SPR use in an emergency, including the amount, rate, and timing of its use, and a Department of Justice memorandum discussed the statutes available to the President in various oil emergencies. GAO stated that these statutes leave gaps in the authorities available to the President to cope with oil crises. The comprehensive procedures report does not adequately deal with the emergency responses available to the President or the procedures to implement them. The options are inadequately detailed and some face implementation problems. Also, the procedures lack necessary detail and many of them are not fully developed.
