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The United States is looking to buy 1 million barrels of crude oil for the Strategic Petroleum Reserve.
Under Joe Biden, the United States sold hundreds of millions of barrels of oil from the reserve. The amount sold during his term was a record amount.
The reserve only holds 409 million barrels of the 700 million barrel capacity.
The U.S. Department of Energy said Tuesday it is looking to buy 1 million barrels of crude oil for delivery to the Strategic Petroleum Reserve, as it seeks to take advantage of relatively low oil prices to help replenish the stockpile.
The previous administration of former President Joe Biden sold record amounts of oil from the SPR, including a 180-million-barrel sale after Russia, one of the world’s top oil producers, invaded Ukraine in 2022. The reserve, which has about a 700-million-barrel capacity, is now holding nearly 409 million barrels.
President Donald Trump’s administration has been looking to replenish the SPR, but has been limited by a lack of funds and by ongoing maintenance at the reserve, held in a series of hollowed-out salt caverns on the Texas and Louisiana coasts.
Pumps, pipes and other above-ground SPR infrastructure are constantly exposed to corrosive, salty air. Trump’s tax and spending bill included about $171 million for the SPR oil purchases and maintenance, much less than the $1.3 billion that had originally been in the legislation. Buying more oil for the SPR will likely require the passage of new legislation.
The Trump administration is beginning to take steps to refill the strategic reserve.
This acquisition represents an initial step toward refilling the strategic reserve, which has been drawn down in recent years. The administration is strategically timing the purchase to benefit from favorable market conditions as it works to restore the nation’s emergency oil supplies.