US Oil Reserve to Remain Unfilled for Years: Senior Official

The White House Won’t Refill Strategic Petroleum Reserve in Near Future, Says Energy Secretary

In a recent interview, U.S. Secretary of Energy Jennifer Granholm revealed that the White House has no plans to refill the Strategic Petroleum Reserve anytime soon. Last year, millions of barrels were drawn from the reserve, leaving it depleted.

Last October, the Biden administration announced its intention to replenish the reserve by repurchasing crude oil when prices reach between $67 and $72 per barrel. This would typically be a time when oil prices are relatively low. However, the Department of Energy recently confirmed that the purchase of about 12 million barrels of crude for the reserve will not happen until August 2023.

“The bottom line is we are going to replenish,” Mrs. Granholm told CNN. However, she acknowledged that a full refill may not be completed by the end of President Joe Biden’s term in early 2025. “The plan is this term and the next term to be able to do that,” she added.

As of Thursday afternoon, oil prices stood at around $77 per barrel, reaching a nearly three-month high. Despite this, data from Wednesday showed that U.S. consumer prices rose modestly in June, with the smallest annual increase in over two years.

Positive Outlook for Oil Demand

A report by the International Energy Agency (IEA) predicted that oil demand would reach a record high this year, although the increase would be slightly less than previously anticipated due to economic headwinds and interest rate hikes. Similarly, an OPEC report maintained an upbeat outlook for world oil demand, despite economic weakness.

The report also highlighted China and India as key drivers of fuel use expansion. However, China’s post-pandemic recovery momentum slowed, with exports contracting at their fastest pace since the onset of the pandemic three years ago, according to the country’s Customs Bureau.

So far, the U.S. Department of Energy has purchased 6.3 million barrels of oil to replenish the Strategic Petroleum Reserve. Federal data shows that as of July 7, the reserve contained 346.8 million barrels, the lowest figure since 1983.

The Strategic Petroleum Reserve, which has served as an emergency supply of crude oil since the 1970s energy crisis, is located in underground salt caverns at four sites in Louisiana and Texas.

“We’re going to go as responsibly as possible and make sure we get a good value for taxpayers,” Mrs. Granholm emphasized. She also reassured that the United States still has the largest strategic petroleum reserve in the world, providing enough supply to handle any emergencies in the next couple of years.

Furthermore, Mrs. Granholm addressed recent moves by Saudi Arabia and Russia, two major oil producers, to raise oil prices by restraining the oil supply.

When asked about the actions taken by Saudi Arabia and Russia, Mrs. Granholm and U