The role of strategic petroleum reserves:
- Guarantee the supply. That is, to ensure the supply of oil for a period of time, for emergency needs, so that all important sectors of the national economy, especially the army, can operate normally;
- Stabilizing oil prices . The huge SPR itself acts as a market check and balance, and such huge reserves can be sold to the international market at any time to defend against rising oil prices. Resisting the rise in oil prices is the real role of the strategic oil reserve;
- Deterrent effect. In an emergency, countries can use special strategic resources in a timely manner to reduce and limit the impact of “oil weapons” or oil crises , thereby gaining time for a series of problems such as the crisis. It could also convince potential opponents that the reserves could protect oil supplies in the long run. In deciding to use an “oil weapon” we must take into account the unbearable loss of our oil revenues;
- Increase income. When necessary, oil reserves can also be a source of government financial funds. When the national oil market and political and economic environment are relatively stable, increasing government revenue and solving financial difficulties have become new trends in the role and management of oil reserves.