The Biden administration has suddenly put a stop to replenishing the country’s Strategic Petroleum Reserve (SPR), citing a focus on protecting taxpayers’ interests, according to the Department of Energy.
This move comes amidst surging crude oil prices driven by geopolitical tensions and a tightening global market.
The Energy Department’s Office of Petroleum Reserves recently revealed plans to acquire around three million barrels of crude oil for delivery to its Bayou Choctaw facility in Louisiana during August and September. Bayou Choctaw is among the four main storage sites managed by the government for the Strategic Petroleum Reserve.
Nevertheless, the U.S. government swiftly overturned the decision and “will not award the current solicitations for the Bayou Choctaw SPR site and will solicit available capacity as market conditions allow. We will continue to monitor market dynamics.”
It’s still uncertain whether the Department of Energy will pursue contracts for oil deliveries in October.
When questioned about the administration’s decision not to refill the SPR despite previous assurances, White House press secretary Karine Jean-Pierre shifted responsibility to the Department of Energy.
“I believe the Department of Energy is responsible for that particular component. So, I would refer you to Department of Energy. I know there were certain components to that and how they were going to move forward in refilling it. They would have more specifics on that for you,” Ms. Jean-Pierre told reporters on April 3.
Since February 2021, the White House has drained the country’s emergency oil reserves by 43 percent.
Currently, it maintains just over 363 million barrels of oil, a significant drop from the 638 million barrels recorded when President Joe Biden assumed office, as reported by the Energy Information Administration (EIA).
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