The Arab Oil Embargo of 1973 initiated efforts among oil
import-dependent nations to build government-controlled stocks of oil –- known
as strategic stocks -- as a buffer against severe supply interruptions.
These strategic stockpiles, the largest of which is the U,S, Strategic Petroleum
Reserves, now account for a significant fraction of the world’s inventories.
There has been only one strictly emergency use of strategic stocks, and it was
small: during the 1991 Gulf Conflict, the
The International Energy Agency's oil-sharing rules, designed to share
the burden of an oil supply shortage, require that each participating nation
hold stocks equal to 90 days of imports. Most of the participants meet the
requirement with industry-owned stocks that can be commandeered in an emergency.
Only the