US Energy Secretary Chris Wright announced plans to seek up to US$20 billion in funding to restore the nation’s Strategic Petroleum Reserve (SPR) to its full capacity, echoing President Donald Trump’s commitment to bolstering domestic energy resources.
The SPR, established in response to the 1970s Arab oil embargo, can hold up to 700 million barrels (mbbl) of crude oil, serving as a critical safeguard against supply disruptions.
Wright, speaking in an interview in Louisiana, stated that the aim is to bring the reserve holdings “just close to the top” for optimal operation.
Following the announcement, US crude futures experienced a momentary surge, peaking at US$67.68 a barrel in New York.
The SPR’s stockpile was significantly reduced under the previous administration of President Joe Biden in response to soaring gasoline prices following Russia’s invasion of Ukraine.
Current levels stand at 395mbbl, according to Energy Department data.
During Biden’s term, approximately 290mbbl were sold from the reserve, including emergency drawdowns and sales mandated by Congress for unrelated expenditures such as infrastructure repairs.
Wright indicated that these rapid drawdowns might have caused infrastructure issues due to the reserve’s age.
“Was there some damage from the rapid drawdowns? It appears that there was. So certainly some of the money we are going to spend is going to be maintenance,” Wright stated.
The replenishment plan hinges on Congressional approval of the necessary funding, which remains uncertain.
The Energy Department’s budget for purchases was exhausted after the Biden administration acquired approximately 60mbbl.
Wright disclosed that a specific funding request to Congress has not yet been made.
President Trump has consistently emphasised reinforcing conventional energy sources since his inaugural address in January, which includes enhancing domestic oil production and easing regulations.
Wright emphasised the importance of the SPR in ensuring energy security for the American people.
“Ultimately, that is what it was built for — to have the maximum security for the American people,” Wright stated.
In related news, the US Department of Energy approved a loan guarantee in February to expand Calumet’s sustainable aviation fuel refinery in Montana, enabling production to rise from 140 million to 315 million gallons annually, demonstrating a commitment to both traditional energy security and sustainable energy solutions.
