Biden Administration Claims Energy Stockpiles Replenished After Buying 40 Million Barrels
The Biden administration announced Monday that it has successfully replenished the Strategic Petroleum Reserve (SPR) that it had recklessly depleted by purchasing 40 million barrels of oil. The Department of Energy stated this move is part of their broader strategy to stabilize the nation’s energy reserves and ensure security.
Energy Secretary Jennifer Granholm celebrated this achievement, saying, “This milestone is a proof point that when the Biden-Harris Administration makes and implements a plan, we deliver for the American people.” Granholm emphasized that the administration’s actions demonstrate their commitment to maintaining energy stability and national security.
The recent purchase of 4.65 million barrels is part of a larger strategy that included the cancellation of 140 million barrels in planned sales. According to the administration, this brings the total refill to 180 million barrels, which had been depleted in response to the 2022 Russian invasion of Ukraine. Granholm noted that the oil was sold at an average of $95 per barrel and repurchased at $77 per barrel, showcasing a strategic financial decision.
However, some skepticism remains. In March, Granholm projected that the SPR would be fully replenished by the end of 2024. At that time, the reserve stood at just over 638 million barrels when President Biden took office but had dropped to 374 million barrels by July 19. Critics pointed out that the administration’s statement appears to focus solely on the 180 million barrels drained due to the Ukraine conflict, not the overall reserve levels.
Amos Hochstein, energy adviser to President Joe Biden, recently addressed concerns over gasoline prices, suggesting that the SPR remains a crucial tool for managing fuel costs. In an interview with the Financial Times, Hochstein acknowledged that gasoline prices were still burdensome for many Americans and expressed a desire to reduce them further. He underscored that the SPR has sufficient capacity to be utilized if necessary to help control prices.
Overall, the Biden administration’s recent moves regarding the SPR reflect its broader strategy to balance immediate energy needs with long-term security considerations. As the administration navigates these challenges, the effectiveness and impact of its energy policies will remain closely watched by both supporters and critics.
