This is the week the Energy Department will release nearly 5 million barrels of oil from the nation’s Strategic Petroleum Reserve as part of the Biden administration’s plan to lower the cost of gasoline at the pump.
The plan continues to be opposed by Oklahoma U.S. Sen. James Lankford who last week joined others to introduce the Strategic Production Response (SPR) Act to prioritize American energy production and prohibit the Secretary of Energy from tapping the Strategic Petroleum Reserve for reasons other than a severe energy supply interruption until the Secretary of the Interior issues a plan to increase oil and gas production on federal lands and waters.
The Department announced Friday it will release 4.8 million barrels, part of its total effort to eventually release 50 million barrels of crude oil. President Biden announced last month his intention to use the Strategic Petroleum Reserve in lowering the cost of gasoline, a plan that drew immediate criticism from Oklahoma energy groups and its congressional delegation.
DOE will continue to accept bids from interested parties for the additional barrels authorized for exchange. As the global economy recovers from the pandemic, oil supply has failed to increase at a pace necessary to meet demand.
“Exchanges and sales from the Strategic Petroleum Reserve are important tools we are using to address oil supply disruptions as the world recovers from a once-in-a-century pandemic,” said Secretary Jennifer M. Granholm in making Friday’s announcement. “The President rightly believes Americans deserve relief now and has authorized the use of the SPR to respond to market imbalances and reduce costs for consumers.”
DOE will issue the Notice of Sale for 18 million barrels from the SPR on December 17. DOE reviewed and approved the first exchange of 4.8 million barrels for release to ExxonMobil. Delivery will be conducted from the Bryan Mound, West Hackberry, and Bayou Choctaw SPR storage sites.
The combined exchange-and-sale approach allows for up to 32 million barrels to be released through exchanges. As DOE moves forward with the sale, exchange requests will continue to be accepted from interested parties and approved as appropriate to address supply disruptions.