Biden Seeks Funds to Replenish Strategic Petroleum Reserve at $80 per Barrel

Jul 29, 2024, 06:15 PM

The Biden administration is seeking additional funds from Congress to purchase more oil to replenish the depleted Strategic Petroleum Reserve (SPR). The reserve reached a low after a significant drawdown following Russia’s invasion of Ukraine. Most of the cash has been remitted to Congress in exchange for canceled mandated SPR sales, necessitating Congress to recapitalize the petroleum account to restore the SPR to pre-2022 levels. The Energy Department is also asking Congress to cancel additional reserve sales it had mandated, a strategy that successfully halted some 140 million barrels in sales scheduled through fiscal year 2027. The administration's request has sparked a debate in Congress, with critics pointing out the high prices of oil purchases, around $80 per barrel, and questioning the environmental implications of supporting the oil industry.