The U.S. Department of Energy has announced that the completion of crude oil deliveries to the Strategic Petroleum Reserve (SPR) will be delayed until the end of the year due to maintenance issues. This recovery plan is occurring as much as seven months behind schedule.
The administration of former President Joe Biden had initially mapped out deliveries totaling 15.8 million barrels between January and May, but only 8.8 million barrels have been delivered thus far. An Energy Department spokesperson highlighted that the scheduled crude oil deliveries were adjusted as a result of maintenance activities at the site.
The crude oil secured from previous arrangements will now be delivered through December 2025. Notably, Biden’s administration undertook substantial sales from the SPR, including the unprecedented release of 180 million barrels in 2022, aimed at alleviating rising gasoline prices following Russia’s invasion of Ukraine.
Former President Donald Trump had committed to replenishing the SPR by filling it “right to the top” upon taking office, emphasizing support for the domestic oil industry. However, refilling the reserve is proving to be a lengthy process.
Energy Secretary Chris Wright has indicated that restoring the reserve to its pre-sale capacity could require approximately $20 billion and several years. The recent tax-and-spending bill introduced by Trump designates around $1.5 billion for both the acquisition of oil and maintenance of the SPR.
Wright criticized the large oil sale conducted by the Biden administration, suggesting it resulted in significant financial damages. When pressed for details, the department reported that the sale led to $2 million in emergency repair costs, $35 million associated with oil transportation, and $243 million in expenses from delayed maintenance mandated by Congress.
Nevertheless, the Biden administration has claimed a profit of about $3.5 billion from repurchasing 59 million barrels at an average cost of less than $76 per barrel, compared to the higher original sale price of $95 per barrel in 2022.