U.S. Energy Department Replenishes Strategic Petroleum Reserve Amid High Gas Prices

July 29 (UPI) — The U.S. Energy Department has successfully replenished the 180 million barrels of oil withdrawn from the Strategic Petroleum Reserve (SPR) in response to soaring gas prices following Russia's invasion of Ukraine two years ago. The department capitalized on favorable market conditions, purchasing 43.25 million barrels at an average price of $77, significantly lower than the 2022 average of $95 per barrel. This strategic move aligns with the administration's commitment to securing a favorable deal for taxpayers. In addition to the recent purchases, the Energy Department expedited the exchange of nearly 5.5 million barrels, originally scheduled for summer 2024, to enhance the refill process. On Monday, the department announced contracts awarded to two companies for 4.65 million barrels of domestically produced crude oil, further bolstering the reserve. Officials emphasized that this achievement demonstrates the Biden-Harris administration's effectiveness in executing plans that benefit the American public. The SPR, the largest of its kind globally, has a total storage capacity of 714 million barrels, enough to accommodate over 1.3 billion large sedans. The reserve consists of four underground storage sites, including Bayou Choctaw in Louisiana, which can hold 76 million barrels, along with facilities in Texas. Oil from the SPR is distributed to nearly half of the U.S. oil refineries through a network of interstate pipelines and barges, ensuring a steady supply to meet national energy needs.