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The Biden administration has replenished 180 million barrels of oil previously drawn from the Strategic Petroleum Reserve (SPR).
What’s the deal: According to the Department of Energy, the Strategic Petroleum Reserve has been replenished by purchasing 43.25 million barrels of oil at an average price of $77 per barrel. The department also canceled plans to sell 140 million barrels, effectively locking in a price of $74 per barrel.
Why was the SPR previously used?: Back in 2022, the Biden administration drew from the Strategic Petroleum Reserve (SPR) to address the surge in oil prices caused by Russia’s invasion of Ukraine. This invasion disrupted global oil supplies, leading to increased gasoline prices worldwide. In response, the administration released 180 million barrels from the SPR, which helped stabilize the market and reduce prices by as much as 40 cents per gallon.
What the Department of Energy is saying: US Secretary of Energy Jennifer M. Granholm said, “As promised, we have secured the 180 million barrels back to the Strategic Petroleum Reserve released in response to Putin’s war in Ukraine – and we accomplished this while getting a good deal for taxpayers and maintaining the readiness of the world’s largest Strategic Petroleum Reserve.”
Why does the US have an SPR?: The SPR, the world’s largest emergency stockpile of crude oil, was created in 1975 in response to the 1973-1974 oil embargo. The SPR is designed to address US energy needs in the face of major supply interruptions, natural disasters, conflicts, or geopolitical events that jeopardize oil availability.
