The U.S. Department of Energy recently approved seven additional exchanges of 13.4 million barrels of crude oil for release from the Strategic Petroleum Reserve (SPR).
According to the press release, through this exchange, along with five previous exchanges, DOE has now released nearly 40 million barrels of crude oil from the SPR to strengthen the nation’s fuel supply.
"As we come out of an unprecedented global economic shutdown, oil supply has not kept up with demand, forcing working families and businesses to pay the price," U.S. Secretary of Energy Jennifer M. Granholm said, according to the press release. "This action underscores the President’s commitment to using the tools available to bring down costs for working families and to continue our economic recovery."
Companies that received SPR crude oil through the exchange have agreed to return the amount of crude oil received along with additional amounts, depending on how long they hold the oil shipments. Exchange contracts were awarded to: Shell Trading US Company, Trafigura Trading LLC, Phillips 66 Company, Macquarie Commodities Trading, Chevron U.S.A. Inc, ExxonMobil Oil Corporation and BP Products North America.
These releases are part of the Biden administration's plan to release 50 million barrels of crude oil from the SPR. According to the DOE, these releases were necessary to boost the nation's supply which has been impacted by effects from the pandemic.
Stored in underground salt caverns at four storage sites in Texas and Louisiana, the federally owned SPR is the world's largest stockpile of emergency crude oil and is crucial to protecting the U.S. economy during times of economic difficulties.
