The Energy Department has just $841 million to buy crude oil for the Strategic Petroleum Reserve (SPR), the equivalent of approximately 12 million barrels, according to energy consulting firm ClearView Energy Partners.
Despite having a capacity of 700 million barrels the SPR is only half full after extensive drawdowns to lower domestic gasoline prices in 2022 and 2023.
Gasoline prices in 2022 were 40 cents per gallon lower in 2022 due to these drawdowns according to the Department of Treasury.
The Biden administration has promised it would start refilling the reserve when prices were below $79 per barrel. Prices currently are at $70 per barrel.
The SPR is kept in underground salt caverns in Texas and Louisiana and was implemented after the 70s oil embargo to protect Americans against fluctuations in oil prices.
By Staff
