The United States Department of Energy (DOE) recently announced the final purchase of 2.4 million barrels of crude oil, marking the completion of the Strategic Petroleum Reserve (SPR) reloading program. initiated under the Biden administration. The purchase ends resupply efforts launched after the release of 180 million barrels in 2022, intended to counter rising energy prices following Russia's invasion of Ukraine.
Since the inception of this program, DOE has acquired a total of 59 million barrels of oil at an average price of $76 per barrel, maximizing funds allocated for these purchases and reaching a final price of $74.75 per barrel. for all transactions. In addition, mandatory sales of 140 million barrels were canceled, allowing the DOE to replenish reserves beyond the quantities initially released.
A Criticized but Effective Strategy
Despite criticism of the Biden administration, the DOE has emphasized the economic effectiveness of this strategy for American taxpayers. Indeed, the 180 million barrels sold in 2022 were sold at an average price of $95 per barrel, a level significantly higher than that of recent purchases. The American administration also mentioned that these sales had made it possible to stabilize fuel prices, avoiding an even more marked increase.
Treasury Department analyzes also support this approach, estimating that strategic sales have contributed, with the support of international partners, to a reduction in gasoline prices of up to 40 cents per gallon for American consumers.
Strategic Reserves, a Subject of Political Conflict
However, the Biden administration's handling of the SPR has sparked political tensions. Some elected Republicans have accused the White House of endangering national energy security by reducing the volume of emergency reserves for short-term political objectives. In response, Energy Secretary Jennifer Granholm said the U.S. reserve remains the largest in the world, at 387.2 million barrels as of November 1, 2023.
When President Biden took office in January 2021, the SPR contained 638 million barrels. This significant reduction in reserves remains a point of disagreement between Republicans and Democrats, fueling the debate on the energy independence of the United States.
Outlook for the Strategic Reserve after 2025
With the replenishment program officially ending, no new crude oil acquisitions for the SPR are planned until 2025. However, changes could occur with the incoming administration. President-elect Donald Trump has already expressed his desire to “immediately replenish” the reserve if he were to take a second term, criticizing the Biden administration's approach on this issue.
While energy policy remains a central subject of debate, the end of this strategy marks a key moment in the management of American energy security. The future of the SPR will depend on future political choices, in a context where prices and geopolitical tensions continue to evolve.
