Bush 2008 Budget: $168 Million To Begin SPR Expansion To 1.5B Bbl

WASHINGTON (Dow Jones)–U.S. President George W. Bush on Monday proposed to spend $168 million in his 2008 budget to begin expanding the nation’s Strategic Petroleum Reserve from its current capacity of 727 million barrels to 1.5 billion barrels by 2027.

As previously announced, the president also proposed to authorize the filling up current capacity, from its current 691 million barrel level, through 2007 and 2008 using federal royalty oil.

The expansion and fill is part of the administration’s plan to reduce the vulnerability of the U.S. to energy supply disruptions.

By Ian Talley, Dow Jones Newswires