SPR gets drained hard for price control but the old caverns crack and leak from it. Power costs climb to 17-year highs as data centers suck up electricity. Gas, solar, and wind all get more expensive at once. The whole energy backup and supply system looks ready to crack under current pressure.
- US pulled 352 million barrels from Strategic Petroleum Reserve in past four years to control prices.
- Draws damage Gulf Coast salt caverns with fracturing wells, leaky pumps, and wear-and-tear.
- Old SPR system now pushed to breaking point from repeated use.
- Lazard says cost of gas power reached highest level since 2009 at $90 per megawatt-hour.
- Solar and onshore wind costs also jumped over 10 percent year-over-year.
- Data center demand drives power costs higher across the board.
WSJ article on frequent SPR oil draws pushing system to breaking point: https://www.wsj.com/business/energy-oil/frequent-oil-draws-from-u-s-strategic-reserve-push-old-system-to-breaking-point-7fb8c421
Yahoo Finance on US gas power cost at 17-year high: https://finance.yahoo.com/energy/articles/us-cost-gas-power-17-110000139.html