The U.S. Department of Energy has announced the completion of a significant acquisition for the Strategic Petroleum Reserve (SPR), securing 200 million barrels of crude oil at an average price of $74.75 per barrel. This follows the closure of a recent solicitation aimed at acquiring 2.4 million barrels for the SPR.
This purchase surpasses by 20 million barrels the 180 million barrels sold under President Biden's emergency declaration in response to Russia's invasion of Ukraine in 2022. To date, the Department has directly acquired 59 million barrels at an average cost below $76 per barrel, significantly lower than the $95 average sales price during the emergency sales in 2022.
In collaboration with Congress, an additional 140 million barrels were secured by canceling mandated sales between fiscal years 2024 and 2026, at approximately $74 per barrel. This brings nearly 200 million barrels purchased or retained since 2022.
“With the awarding of these contracts, DOE has fully utilized all funding allocated for crude oil purchases following the sale of 180 million barrels in response to the Russian invasion of Ukraine and secured 20 million more barrels at a good price for taxpayers,” stated U.S. Secretary of Energy Jennifer M. Granholm. She emphasized that this milestone reflects President Biden and Vice President Harris' commitment to economic and energy security.
All revenue from the emergency sale, totaling $16.95 billion except for $2.05 billion rescinded by Congress, was used to secure these acquisitions. Additionally, approximately five million barrels were accelerated through exchange returns to support SPR refilling efforts.
The replenishment strategy follows a historic release from SPR intended to mitigate global supply disruptions caused by geopolitical tensions involving Ukraine and Russia. The Department of Treasury analysis indicates that such releases helped reduce gasoline prices by up to forty cents per gallon in coordination with international partners.
Contracts awarded on November 7 are set for deliveries totaling 2.4 million barrels between April and May 2025 at Bryan Mound site after receiving eighteen proposals meeting quality standards.
The administration's three-part strategy includes direct purchases funded by emergency sales revenues, exchange returns with premium oil volumes above delivered amounts, and legislative measures avoiding unnecessary non-disruption-related sales.
The SPR remains as one of the largest known supplies globally stored underground across Texas and Louisiana sites ensuring operational integrity through maintenance programs like Life Extension II.
For further details on SPR operations please refer to Infographic: Strategic Petroleum Reserve and Fact Sheet: Strategic Petroleum Reserve.
