The US Department of Energy (DOE) has finalised the purchase of 200 million barrels of crude oil to replenish the Strategic Petroleum Reserve (SPR), securing the oil at an average price of $74.75 per barrel.
This acquisition concludes a series of purchases aimed at restoring the reserve following an emergency release of 180 million barrels authorised in 2022 due to market disruptions linked to the Russian invasion of Ukraine.
As part of the most recent solicitation under Solicitation No. 89243525RCR000031, which closed on 8 November 2024, the DOE awarded contracts for the purchase of an additional 2.4 million barrels of crude oil, valued at $178.65m.
The contracts were awarded to Energy Transfer Crude Marketing for 600,000 barrels and to Macquarie Commodities Trading US for 1.8 million barrels. These deliveries are scheduled for April to May 2025 at the SPR’s Bryan Mound site in Texas.
The DOE’s broader buyback strategy has now resulted in the acquisition of 59 million barrels for the SPR at an average price below $76 per barrel, which is lower than the $95 average sales price during the emergency sale in 2022.
The department also arranged for the retention of 140 million barrels by working with Congress to cancel scheduled sales between fiscal years 2024 and 2026, securing these at approximately $74 per barrel. Together, these measures have restored nearly 200 million barrels to the SPR, said the department.
US Secretary of Energy Jennifer Granholm said: “With the awarding of these contracts, DOE has fully utilised 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.
“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.”
According to the DOE, revenue from the 2022 sale, totalling $16.95bn, was used for these purchases, excluding $2.05bn that Congress redirected for deficit reduction.
Additionally, the DOE accelerated the return of approximately five million barrels through exchange agreements, ensuring optimal opportunities to replenish the SPR for potential future emergency needs.
This replenishment follows a historic release from the SPR to address significant global supply disruptions. According to the US Department of the Treasury, the 2022 SPR releases, alongside coordinated international efforts, helped lower US gasoline prices by up to 40 cents per gallon.
The Biden-Harris Administration’s approach to restoring the SPR prioritised taxpayer value, using a three-part strategy. This includes direct purchases funded by emergency sale revenues, exchange returns with added oil premiums, and legislative measures to prevent sales not related to supply disruptions.
The SPR, with storage facilities across four sites in Texas and Louisiana, remains the largest emergency crude oil reserve in the world.
