"Maximum Security For US": DoE Head Plans $20 Billion Refill Of Depleted SPR After Biden Drain
West Texas Intermediate (WTI) prices have fallen to levels where the Trump administration sees a massive opportunity to begin refilling the nation's depleted Strategic Petroleum Reserve (SPR). The move comes as WTI prices slide on President Trump's 'Drill Baby Drill' energy policies, mounting US growth fears, trade wars, easing tensions in the Middle East, and confirmation that OPEC+ will proceed with an output hike.
US Energy Secretary Chris Wright told Bloomberg in an interview that the Energy Department is preparing to purchase $20 billion worth of crude oil as the first step in refilling the nation's depleted SPR to a sufficient level. He said the initiative, which may take years, would restore holdings "just close to the top."
The initiative, which may take years, would restore holdings "just close to the top" to maintain efficient operating status, Wright said in an interview on Thursday in Louisiana after touring a natural-gas export plant. Trump said he planned replenish the Strategic Petroleum Reserve during his inaugural address in January, part of a broad embrace of conventional energy that's also included pledges to boost domestic oil production and roll back regulation. The storage facility — the largest of its kind — is meant to provide a cushion to guard against crude supply disruptions. "Ultimately, that's what it was built for — to have the maximum security for the American people," Wright said. -BBG
Wright's plan to refill the SPR and fulfill Trump's energy security mandate comes as crude prices fall to the lowest in almost six months as traders wrestle with conflicting signals on the longevity and effects of US tariffs.
For the third week in a row, the Trump administration did not add to the SPR…
Under Biden's first term, the reckless administration dangerously drained the SPR from around 650 million barrels to about 395 million.
Bloomberg noted, "Congress will need to approve funding to refill the system, which isn't guaranteed. Energy Department funds for purchases ran out after the Biden administration bought about 60 million barrels."
Tyler Durden
Fri, 03/07/2025 – 10:25