The Sound Guy
Pursuit Driver
We Need this oil in place. (for when the electric cars fail at the least)
President Biden just canceled plans to refill America's emergency oil reserve — here's why and what it means for you
The Department of Energy (DOE) unexpectedly axed plans to refill its “oil piggy bank” in August and September due to surging oil prices.
The DOE previously announced in March that it was soliciting 3 million barrels of oil for its Bayou Choctaw site in Louisiana — one of four major storage facilities for the Strategic Petroleum Reserve (SPR).
The SPR is the world's largest supply of emergency crude oil and was established back in 1975 in case of a severe oil supply crisis or economic disruption.
"We monitor market dynamics to remain nimble and innovative in our successful replenishment approach to protect this critical national security asset," said DOE spokesperson Charisma Troiano, noting the energy department is keeping “the taxpayer’s interest at the forefront.”
The Energy Department has been gradually refilling the emergency oil supply after stockpiles hit a historic low last year.
The administration withdrew a record 180 million barrels in 2022 to counter supply issues created by Russia’s invasion of Ukraine — but Energy Secretary Jennifer Granholm said in March that the strategic oil reserve would be replenished by the end of the year.
The DOE has said it’s aiming to buy back oil for the SPR at $79 per barrel or below, less than the average of about $95 it received for the 2022 sales.
However, amid increasing prices — currently hovering at around $85 per barrel — the DOE has decided to pull back on further purchases until market conditions improve.
The SPR currently holds about 363 million barrels, according to Energy Department data — down from nearly 600 million at the beginning of 2022.
