The U.S. Department of Energy (DoE) is looking to buy 3 million barrels of crude oil for the Strategic Petroleum Reserve (SPR). This purchase is part of ongoing efforts to refill emergency reserves after a historic release of 180 million barrels in 2022.
Since then, the DoE has repurchased over 56 million barrels at an average cost of about $76 per barrel. This price is significantly lower than the previous sale price of $95 per barrel.
The DoE also collaborated with Congress to cancel a planned sale of 140 million barrels from the reserve, which will help replenish the stockpile. However, this may be one of the last major purchases by the Biden administration, or even the next administration, as funds allocated by Congress are nearly exhausted.
While it’s unclear exactly how much money remains for future oil purchases, a source within the department mentioned that only $150 million is left. This amount would be enough to buy just over 2 million barrels at current prices.
As of October 18, the SPR held approximately 384.6 million barrels of crude oil. Although this is the highest level since the end of 2022, it is still well below the typical range of 600 to 700 million barrels that the reserve held when the country relied more on oil imports.
The DoE has reassured stakeholders that it will continue its purchasing efforts. “The DOE will keep buying crude at a good price for taxpayers using available emergency revenues,” said a department spokesperson on Monday.
However, some experts are concerned about future challenges. Kevin Book, a policy analyst at ClearView Energy Partners, noted, “The imminent depletion of the SPR petroleum account puts pressure on Capitol Hill for further replenishment. The politicization of the SPR could make it difficult for lawmakers to reach an agreement.” He added that while there might still be some funds available if the current purchase goes through, it would not be a significant amount.
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