The US Procures 2.8 Million Barrels of Oil for Its Strategic Reserve

The United States has secured 2.8 million barrels of crude oil for its national emergency oil reserve, aiming to replenish dwindling supplies. The Energy Department has been gradually refilling the Strategic Petroleum Reserve, which had reached a 40-year low.

In response to soaring retail gasoline prices in 2022, the Biden administration authorized the release of a record 180 million barrels from the emergency oil supply. Despite the recent increase in pump prices, the Department of Energy remains committed to refilling the reserve, with storage caverns still at approximately half capacity.

On March 28th, the announcement signifies that the United States has procured a total of 32.3 million barrels of oil for its inventories since last year. This recent acquisition involves crude oil delivery to the reserve’s Big Hill storage site in Texas, facilitated by Atlantic Trading & Marketing Inc., a U.S. division of Macquarie, and Sunoco Partners Marketing & Terminals LP, as stated by the Energy Department.

The deliveries are scheduled to take place from September 1st to September 30th. Alongside the repurchasing of oil, the department’s strategy for refilling the system has entailed expediting the return of loaned oil to the reserve and revoking approximately 140 million barrels of reserve sales previously mandated by Congress.

The Energy Department is also pursuing approximately 3 million barrels for a Strategic Petroleum Reserve site that underwent maintenance—the Bayou Choctaw site in Louisiana.

This effort will commence with the delivery of 1.5 million barrels in August, followed by an additional 1.5 million barrels in September. “Pending competitive bids and market dynamics, DOE will aim to solicit and fully subscribe available capacity as it is available,” the department stated in a March 28 announcement.

According to Energy Department data, the current inventory of the Strategic Petroleum Reserve stands at approximately 363 million barrels. This represents a significant decrease from nearly 600 million barrels at the beginning of 2022.

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