Washington, (TDI): The United States has announced the acquisition of six million barrels of crude oil for its Strategic Petroleum Reserve (SPR), with deliveries scheduled through May 2025, according to the Department of Energy.
The move comes as part of a broader strategy to replenish the SPR following President Joe Biden’s directive last year for a record release of 180 million barrels to stabilize fuel prices in the wake of Russia’s invasion of Ukraine, reported international media outlets.
The latest purchase includes 3.5 million barrels from Exxon Mobil, 2 million from Shell Trading Company, and 500,000 from Macquarie Commodities Trading US, with a combined value exceeding $411 million.
The crude oil, of the sour variety, will be delivered at a rate of 1.5 million barrels per month from February to May next year at the Bayou Choctaw site in Louisiana.
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The SPR, a critical safeguard against disruptions in oil supply, was drawn down significantly during 2022 to counter the surge in global energy prices.
With the recent purchase, the Department of Energy has utilized most of its remaining funds for SPR replenishment and can only acquire an additional 2 million barrels at the current market price of around $75 per barrel.
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To continue rebuilding the reserve, the Department of Energy will need to seek additional funding from Congress or urge the cancellation of forthcoming congressionally-mandated sales.
Cancellation in Mandated Sales
In a previous move nearly two years ago, the Department of Energy collaborated with Congress to cancel 140 million barrels in mandated sales slated through 2027, aimed at preserving the nation’s strategic energy reserves.
The SPR, housed in underground salt caverns in Texas and Louisiana, is the world’s largest emergency crude stockpile, providing the US with a critical buffer in times of severe supply disruptions.
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