The US Department of Energy (DOE) concluded the latest phase of its buyback initiative for the Strategic Petroleum Reserve (SPR).
In this phase, they revealed the purchase of 200 million barrels of crude oil at an average cost of $74.75 per barrel.
This achievement comes after the department’s recent bid to acquire an additional 2.4 million barrels.
The bid adds 20 million barrels of oil since 2022, surpassing the emergency release related to the Ukraine crisis.
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Securing a Low-Cost Oil Reserve for US Taxpayers
So far, the DOE has directly purchased 59 million barrels for the SPR, averaging below $76 per barrel.
These purchases were made at approximately $20 per barrel less than the 2022 sale price of $95.
The DOE and Congress cancelled mandated sales from 2024 to 2026, allowing the retention of 140 million barrels at about $74 per barrel.
Jennifer M. Granholm, the US Secretary of Energy said, “With the awarding of these contracts, DOE has fully utilized all funding allocated for crude oil purchases following the sale of 180 million barrels in response to the Russian invasion of Ukraine and secured 20 million more barrels at a good price for taxpayers.”
She added, “This milestone cements President Biden and Vice President Harris’ commitment of putting the economic and energy security of the American people first with actions that steadied prices at the pump, provided certainty to industry, and maintained the SPR as the world’s largest supply of emergency crude oil.”
The administration’s strategy for replenishing the SPR is grounded in a three-tiered plan introduced in early 2023.
This approach includes emergency sale purchases, oil premium exchange returns, and laws against non-emergency sales.
This strategy enables the DOE to keep the SPR ready for future emergencies.
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The DOE awarded contracts for 2.4 million barrels to the Bryan Mound facility for April-May 2025.
The best bids were chosen from 18 submissions in response to its late October request, focusing on quality and specifications.
The DOE commits to maintaining the operational integrity of the SPR through its Life Extension 2 initiative.
The 200 million barrel stockpile in Texas and Louisiana strengthens US energy security and stabilizes supply during global disruptions.
The US Treasury found that the 2022 SPR release reduced domestic gas prices by up to 40 cents per gallon.