The U.S. Department of Energy announced it would launch a long-term replenishment effort for America's Strategic Petroleum Reserve, according to a DOE news release.
The plan will focus on ensuring the reserve continues to function as a readily available resource during local and global crude oil supply shortages.
“The U.S. Strategic Petroleum Reserve, the largest emergency supply in the world, is a valuable tool to protect the American economy and consumers from supply disruptions — whether caused by emergencies at home or petrol-dictators weaponizing access to energy resources,” U.S. Secretary of Energy Jennifer M. Granholm said in the release.
The plan will include a buyback phase that starts with the request of bids to repurchase 60 million emergency barrels of oil from the 180 million that were withdrawn from the reserve after Russia invaded Ukraine. The Strategic Petroleum Reserve will issue a call for bids during the fall of this year which will also describe the amount and type of crude oil it intends to purchase, the release reported.
“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,” Granholm continued, according to the release.
In addition, the DOE news release reported it intends to hold a rule-making proceeding to potentially authorize a competitive, fixed-price bid process in lieu of index pricing.
