The effort to refill America’s Strategic Petroleum Reserve, depleted under President Biden in 2022, is progressing slowly under the Trump administration, Energy Secretary Chris Wright said in a CNBC interview this week.
"We are refilling the reserve now, and we will continue to refill the reserve the whole time I'm in office," Wright stated, warning it could take years. He criticized Biden’s decision to release oil from the SPR as "such an irresponsible action to drain that reserve so quickly for electoral reasons."
The Biden administration authorized a historic sale of 180 million barrels over six months to fight surging gasoline prices and inflation, and in response to Russia’s invasion of Ukraine, according to Newsmax.
Wright added that the rapid drawdown damaged infrastructure: "It was drained so fast, it did some damage to the facilities. And so, right now, we only can fill two of the four major salt caverns we have, so we are doing repair work on the other two." He said he’s pushing for more funding to speed up the repairs and refill effort.
Recall back in March we noted that Wright told Bloomberg in an interview that the Energy Department was preparing to purchase $20 billion worth of crude oil as the first step in refilling the nation's depleted SPR to a sufficient level.
At the time, he said the initiative, which may take years, would restore holdings "just close to the top."
The initiative, which may take years, would restore holdings "just close to the top" to maintain efficient operating status, Wright said in an interview on Thursday in Louisiana after touring a natural-gas export plant. Trump said he planned replenish the Strategic Petroleum Reserve during his inaugural address in January, part of a broad embrace of conventional energy that's also included pledges to boost domestic oil production and roll back regulation. The storage facility — the largest of its kind — is meant to provide a cushion to guard against crude supply disruptions. "Ultimately, that's what it was built for — to have the maximum security for the American people," Wright said. -BBG
Currently trading at approximately $61 per barrel, WTI has decreased by about 13.76% since the beginning of the year and the re-escalation of trade disputes, particularly between the U.S. and China, has dampened global economic outlooks, leading to reduced demand projections for oil
Recall, under Biden's first term, the reckless administration dangerously drained the SPR from around 650 million barrels to about 395 million.
Bloomberg noted back in March: "Congress will need to approve funding to refill the system, which isn't guaranteed. Energy Department funds for purchases ran out after the Biden administration bought about 60 million barrels."
