The United States announced that it will loan 53 million barrels of oil from the Strategic Petroleum Reserve (SPR) to petroleum companies in an effort to relieve elevated prices. The move is the next phase of the Department of Energy’s execution of the nation’s 172-million-barrel contribution to the International Energy Agency’s action to stabilize supplies.
“With these awards, DOE will move forward with an exchange of more than 53.3 million barrels of crude oil, while securing an approximately 28 percent return premium—representing 15.1 million barrels,” the agency explained.
“With today’s announcement of contract awards, we are advancing the President’s commitment to carrying out this historic emergency exchange,” DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office Kyle Haustveit said in a statement. “These actions continue to move oil swiftly into the market, address near-term supply needs, and ensure that the Strategic Petroleum Reserve remains strong through the return of premium barrels.”
Late last month, the DOE announced that it issued a Request for Proposal (RFP). In March, the Department of Energy explained that the 172 million oil barrels would take about 120 days to deliver. “President Trump promised to protect America’s energy security by managing the Strategic Petroleum Reserve responsibly and this action demonstrates his commitment to that promise,” Energy Secretary Chris Wright said at the time. “Unlike the previous administration, which left America’s oil reserves drained and damaged, the United States has arranged to more than replace these strategic reserves with approximately 200 million barrels within the next year—20% more barrels than will be drawn down—and at no cost to the taxpayer.”
