Saturday, August 15, 2026

GAO said in 2022 the SPR was in very good condition, Trump's Energy Department came into office saying it wasn't, recent drawdowns only compound the problems in the 60 salt caverns

The damn thing will probably collapse before they're done.

Maybe instead of a ballroom next to the White House they can build some new tanks instead. 

SPR depletion raises questions about integrity of caverns that store oil

... The Government Accountability Office said in a May report that “repeated partial drawdowns followed by refill can leach a single part of a cavern repeatedly, leading to undesirable shapes.” 

The majority of the SPR’s caverns were found to be in “very good condition” after the 2022 drawdown, according to the GAO.

“However, every drawdown cycle expands cavern volume and reduces the spacing between caverns within the salt dome, which ultimately reduces their long-term viability,” it said.

To release oil from the SPR, water is pumped into the bottom of the caverns to displace the crude to the surface and pump it through wells into pipelines.

Seventy million barrels is the strict physical minimum needed at the top of the caverns to keep the extraction pipes safely submerged in oil rather than water, said Siddharth Misra, a petroleum engineering professor at Texas A&M University.

But “the practical operational floor for the crude inventory is between 250 million and 300 million barrels,” Misra said in an email to CNBC. At current inventory levels, “cavern integrity and overall operational capability are at an elevated risk,” he said.

When the inventory drops below 300 million barrels, the SPR loses its ability to pump oil at rapid speeds to address emergencies, Misra said. The system’s pipes and pumps could also get damaged as the oil layer thins at the top and sludge rises toward the extraction intake at the cavern ceiling, he said.

Fresh water is often pumped into the caverns during rapid drawdowns which dissolves the salt walls, Misra said. This “creates flatter, less stable roof and severely thins the critical salt pillars that separate adjacent caverns, greatly increasing the geological risk of a structural cave-in,” he said.

The SPR was originally designed for five full drawdowns. Instead, it has executed dozens of large and small releases over the past 40 years, Misra said.

“Because the system was not designed for this many cycles, the repeated injection of water and extraction of oil have caused severe cavern deformation, accelerated the rate of massive salt falls from the ceilings, and significantly weakened the overall structural integrity of the aging reserve,” he said.

Energy Department officials told the GAO that they are “holding the SPR infrastructure together with ‘Band-Aids,’ and that it is uncertain how long they will hold.” More than a quarter of the SPR inventory was “not available for drawdown due to a combination of construction outages and cavern outages” as of December 2025, the GAO found. ...

The strapped Chicoms come for the people's cash lol

 Beijing is said to move to clarify tax rules stoking confusion among China’s ultra-wealthy

... Beijing last month imposed a 20% tax on offshore trusts – a structure long used by China’s wealthy families to hold hundreds of billions of dollars outside the country. The move set off a panic rush for tax and legal advice, and a scramble for cash to meet the bill.  

The levy applies at nearly every stage of a trust’s life, from establishment to profit distribution and wind-up. Individuals must also declare and settle outstanding taxes on assets already transferred into such structures within 90 days of the rules’ release – by Oct. 21 – or face surcharges for late filing or non-payment.

While the rules ended decades of regulatory ambiguity about the vehicles, they have also created fresh confusion over implementation.

Trusts established after 2023 face the 20% charge at inception, but it remains unclear how many years back owners of older structures, which are subject to an annual recurring tax, must declare, said Yuan Cao, Beijing-based partner of law firm Yingke.

Advisors also warn that many trust assets could fall afoul of foreign-investment reporting rules issued in July, potentially inviting scrutiny from foreign-exchange authorities over how the money left China in the first place.

... The tax push comes as Beijing hunts for new sources of fiscal revenue. Land sales, long a mainstay of local government finances, have collapsed amid the property downturn. 

... “These measures can easily create a sense that a storm is gathering,” said Neo Wang, chief China strategist at Evercore ISI, who added that these concerns may be overdone. ... 

Historian Gordon S. Wood on America: a unique nation dominated by ordinary, Bible-toting people, violent and obsessed with consuming alcohol and making money, vulgar and vibrant, barbarous and boisterous ...

... one that awed and frightened some of its own citizens and many Europeans. It seemed to represent the future for all of humanity.

Here

Michigan, Texas, and New Mexico in the news feed tonight: