The U.S. Department of Energy announced Tuesday that it will purchase 1 million barrels of crude oil to begin refilling the Strategic Petroleum Reserve (SPR). The Trump administration says the move is aimed at restoring the emergency stockpile after years of depletion.
The decision comes as oil prices have fallen to their lowest level since early May. The U.S. benchmark WTI closed at $57.82 a barrel on Tuesday. Lower prices have created an opening to rebuild the reserve at a reduced cost.
The SPR can store up to 700 million barrels and currently holds around 409 million barrels. The Biden administration previously conducted a record 180-million-barrel sale following Russia’s invasion of Ukraine in 2022. That sale drained the stockpile to its lowest level since 1983. Critics say those actions left the U.S. more vulnerable to geopolitical shocks.
Energy Secretary Christopher Wright said the Trump administration is determined to reverse that trend. “While this process won’t be complete overnight, these actions are an important step in strengthening our energy security and reversing the costly and irresponsible energy policies of the last administration,” Wright said.
Officials plan to use funds allocated under the Working Families Tax Cut to secure December and January deliveries. The administration’s long-term goal is to move closer to the 638 million barrels held at the end of 2020. Bids for the 1 million barrels will close on October 28.
Experts have criticized the Biden administration for failing to replenish the SPR when oil prices were still below its stated target of $79 per barrel in April 2024. Tom Pyle, president of the American Energy Alliance, previously called Biden’s 2022 drawdown ahead of the midterm elections a “colossal mistake.” He said it weakened the nation’s ability to respond to global instability.
Infrastructure challenges remain. Pumps, pipes, and other above-ground equipment at the SPR sites in Texas and Louisiana face constant exposure to corrosive coastal air. Congress previously approved $171 million in funding for purchases and maintenance. That amount was far less than the $1.3 billion originally proposed. Larger restocking efforts may require new legislation.
Trump has long argued that a strong petroleum reserve is vital to national security. Senate Democrats blocked his earlier efforts to fill the reserve during his first term. The administration now says it is determined to restore America’s energy buffer.
The move comes as U.S. oil production has hit record levels. That has further eased market pressures. The Organization of the Petroleum Exporting Countries and its allies have also signaled supply increases. This has raised expectations of an oversupplied market in the coming months.