Jennifer M. Granholm Secretary, U.S. Department of Energy | Official Website
The Biden-Harris Administration has announced the purchase of 4.65 million barrels of crude oil for the Strategic Petroleum Reserve (SPR), bringing the total purchased since 2022 to over 40 million barrels. This move is part of a broader effort to replenish the SPR, maintain its operational readiness, and protect national energy security.
According to the U.S. Department of Energy (DOE), more than 40 million barrels have been purchased and delivered or secured for delivery by December 2024. Combined with the cancellation of previously mandated sales, this brings the total amount purchased or retained in the SPR since 2022 to 180 million barrels—the same amount released following Russia's invasion of Ukraine.
By improving procurement practices and providing consistency in repurchasing processes, DOE has capitalized on market stability to directly purchase a total of 43.25 million barrels at an average price of $77 per barrel. This price is nearly $20 lower than the $95 average sales price during the emergency sales in 2022, fulfilling the administration’s commitment to secure favorable deals for taxpayers.
U.S. Secretary of Energy Jennifer M. Granholm stated, “From the beginning, this administration has put the economic and energy security of the American people first. This milestone is a proof point that when the Biden-Harris Administration makes and implements a plan, we deliver for the American people.” She added that they have successfully replenished the SPR while securing good deals for taxpayers and maintaining its readiness.
The DOE’s Office of Petroleum Reserves also announced contracts for acquiring an additional 4.65 million barrels from U.S.-produced crude oil following a Request for Proposal (RFP) issued on July 10, 2024. Five companies responded with 42 proposals, and contracts were awarded to two companies meeting quality specifications and competitive bids. The crude oil will be delivered to Bayou Choctaw SPR storage site between October 1, 2024, and December 31, 2024.
The administration's three-part strategy includes direct purchases using revenues from emergency sales, exchange returns with premium oil volumes above what was initially delivered, and legislative solutions avoiding unnecessary sales unrelated to supply disruptions. DOE has already secured cancellations for congressionally mandated sales totaling 140 million barrels scheduled between Fiscal Years 2024 through 2027.
The SPR remains the world’s largest emergency crude oil supply stored in underground salt caverns across Texas and Louisiana. Through scheduled maintenance periods and ongoing programs like Life Extension 2, DOE prioritizes maintaining SPR's operational integrity as a critical energy security asset.
For further information on SPR operations, visit Infographic: Strategic Petroleum Reserve and Fact Sheet: Strategic Petroleum Reserve.
