How does government control of oil reserves affect the major oil companies?

It doesn't. The federal oil reserve is our government's reserve in case of emergency. It has occasionally be tapped to increase the current flow of oil to consumers, but it doesn't increase oil to companies.





As a side note, opening coastal drilling is not going to increase the government's oil reserve. It will only increase leasing of coastal waters for drilling by oil companies. Any oil recovered would potentially go into the global market, resulting in a nominal reduction in oil prices nationally.How does government control of oil reserves affect the major oil companies?
They must continue to import Oil if the reserves are not tapped to achieve a Market Equilibrium for oil. If the government decided to restrict and bar domestic drilling, then the Major Oil Firms must find a way to supply the market. If the Government decides to allow for Domestic Drilling, then the Oil Firm is able to pay an Autarky Price, which may be higher or lower, depending on the Oil Supply available, as well as the number of competitors in the market, and how much the Domestic Price declines in relation to the World Price in Trading.