In the press briefing, the White House announced several actions Biden has directed his Administration to take “to strengthen energy security, address the supply crunch, and lower costs”.
Which includes selling off 15 million more barrels from the Strategic Petroleum Reserve (SPR) as part of Biden’s plan to withdraw more than 180 million barrels from the SPR.
The White House also says that Biden is “calling on DOE to be ready to move forward with additional significant SPR sales this winter if needed due to Russian or other actions disrupting global markets.
As of September 2022, according to data from the U.S. Department of Energy, crude inventories in the U.S. Strategic Petroleum Reserve (SPR) had hit the lowest level since November 1984.
As of September 2, 2022, the U.S. crude inventories in the Strategic Petroleum Reserve (SPR) were at their lowest level since November 1984.
The Strategic Petroleum Reserve (SPR) is also expected to shrink to a 40-year low by the end of October.
However, in the announcement from the White House, they state they intend to begin repurchasing for the SPR but only when “prices are at or below about $67-$72 per barrel,”.
“The President is prepared to authorize significant additional sales in coming months if conditions require. DOE will be prepared to act quickly to inject additional supply into the market if needed, and the Administration will not hesitate to use this tool, or the others at its disposal, to shore up the global supply of energy, support domestic inventory levels, and bring prices down for Americans.”