United States Shares Proposal to Buy Back 60 Million Oil Barrels For Emergency Stockpile

oil reserves

Following a record-breaking release of crude oil this spring, the United States plans to buy back 60 million barrels for its Strategic Petroleum Reserve (SPR) in the fall, as announced by the Department of Energy.

For the first time since Russia’s invasion of Ukraine, President Biden’s administration announced on March 31 the release of a record 180 million barrels of crude oil from its stockpile in an effort to control the soaring energy costs.

In a press release, U.S. Secretary of Energy Jennifer Granholm said “As we are thoughtful and methodical in the decision to drawdown from our emergency reserve, we must be similarly strategic in replenishing the supply so that it stands ready to deliver on its mission to provide relief when needed most.”

According to the press release, the initial 60 million barrels “will take place in the fall of 2022 to secure delivery in future years when prices are anticipated to be significantly lower than they are today.”

Since the pandemic and Russia’s conflict in Ukraine have increased demand for oil, the Biden administration released a record-sized amount of it from the SPR to control de inflation, which with elections coming up, inflation could be a potential threat to his party.

Original source material for this article taken from here

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Written by Olivia Woods

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