The Nation - News from Aug. 7, 1986
President Reagan, overruling his budget advisers, has ordered accelerated buying of crude oil for the Strategic Petroleum Reserve, situated under salt domes in Texas and Louisiana. A White House statement said that building up oil reserves to 750 million barrels was “the best defense against the effects of rapid price escalation or supply interruptions.” The decision was a victory for Energy Secretary John S. Herrington, who has argued for an aggressive buying program while oil prices remain low. Because of the federal deficit, Budget Director James C. Miller III had urged halting purchases when current contracts expire. The reserve now has 503 million barrels.
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