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U.S. to Purchase One Million Barrels for the Strategic Petroleum Reserve
Posted on 10/21/25 at 2:34 pm
Posted on 10/21/25 at 2:34 pm
quote:
The Trump administration is dipping its toe—barely—into refilling the U.S. Strategic Petroleum Reserve (SPR), announcing plans to purchase one million barrels of crude for delivery in December and January.
quote:
The Department of Energy will use $171 million from President Trump’s new tax and spending law to fund the purchase, issuing a solicitation for crude to be delivered to the Bayou Choctaw site in Louisiana. Bids are due by October 28, with contracts tied to spot market prices.
At around $58 per barrel, the timing is opportunistic. WTI has fallen roughly 30% since January amid swelling inventories, record U.S. production of 13.6 million bpd, and a global supply glut that has traders talking about $50 crude again.
The SPR—America’s emergency oil cushion—was gutted during the Biden years, when 180 million barrels were released to tame gasoline prices. That drawdown left the reserve at its lowest level in four decades, around 395 million barrels.
Refilling it won’t be cheap or quick. Energy Secretary Chris Wright has said it could take years and as much as $20 billion to rebuild the stockpile. Congress has since pushed through $1.3 billion in funding for refills and maintenance while repealing the mandatory drawdowns that raided the reserve in prior years.
Still, a one-million-barrel purchase is more political gesture than energy strategy. With maintenance delays pushing other scheduled deliveries into late 2025, and each government buy signaling to traders that prices could rise, Washington is walking a fine line between refilling reserves and fueling another rally.
LINK
We refilling, baws!
13
Posted on 10/21/25 at 2:37 pm to ragincajun03
Wright > Granholm
Posted on 10/21/25 at 2:41 pm to ragincajun03
Yeah we def going in recession
Posted on 10/21/25 at 2:45 pm to ragincajun03
The US consumes 20 million a day. Shouldn't it be a billion barrels?
Posted on 10/21/25 at 2:46 pm to ragincajun03
are they literally moving a million barrels out of a warehouse? 
Posted on 10/21/25 at 2:47 pm to ragincajun03
quote:
The SPR—America’s emergency oil cushion—was gutted during the Biden years, when 180 million barrels were released to tame gasoline prices. That drawdown left the reserve at its lowest level in four decades, around 395 million barrels.
All for political posturing before mid terms in 2022
Posted on 10/21/25 at 2:48 pm to ragincajun03
quote:
Energy Secretary Chris Wright has said it could take years and as much as $20 billion to rebuild the stockpile
At $111/bbl? Why would we be refilling at $111/bbl when we drew down at ~$95/bbl?
And why do we need new tax revenue to refill at ~$60/bbl when we drew down at $95/bbl? (This one is probably easier to answer - those proceeds were presumably spent elsewhere.)
The way we run the SPR is so.. silly.
Posted on 10/21/25 at 3:00 pm to sqerty
quote:
The US consumes 20 million a day. Shouldn't it be a billion barrels?
Ok, Sir Buzz Killington.
Posted on 10/21/25 at 3:07 pm to Chad504boy
quote:
are they literally moving a million barrels out of a warehouse?
You got a Bragg trailer we can borrow?
Posted on 10/21/25 at 3:09 pm to sqerty
quote:
The US consumes 20 million a day. Shouldn't it be a billion barrels?
There is a fine line between strategic reserves and the pot everyone drinks from.
1 million is a drop, but maybe it's a DCA strategy because they see even lower prices on the horizon.
Posted on 10/21/25 at 3:29 pm to Chad504boy
quote:
are they literally moving a million barrels out of a warehouse?
Sort of, yes. The SPR is physical oil, not a paper asset. It's pumped into one of a handful of underground salt caverns in LA and TX.
Posted on 10/21/25 at 4:23 pm to ragincajun03
its actually an investment if they can stock in cheap and sell during a crisis (when it should be high)
will pay for itself
will pay for itself
Posted on 10/21/25 at 5:44 pm to tigeraddict
quote:
its actually an investment if they can stock in cheap and sell during a crisis (when it should be high)
will pay for itself
Letting it refill from loans and "interest" is how it should be refilled.
Everyone excited about this doesn't realize it is just your tax dollars being used to buy commodities and then spent to pay for pet projects without "raising taxes"
The last SPR sell-off barrels were mandated by congress to cover bills we owed. You can say "buy low and sell high" but that isn't what we are doing.
We are just extracting stored value because the oil in the SPR was initially filled for a crazy low price that will never be realized again.
This post was edited on 10/21/25 at 5:48 pm
Posted on 10/21/25 at 5:50 pm to fightin tigers
A million barrels should cost 58 million…why does it say 171 million?
Posted on 10/21/25 at 5:55 pm to ragincajun03
Does this mean more F-250’s on 80-month financing out there.
Posted on 10/21/25 at 5:57 pm to StonewallJack
quote:
A million barrels should cost 58 million…why does it say 171 million?
Have to pay someone to buy the crude and maintain the facilities.
Have to get it to the SPR.
This post was edited on 10/21/25 at 5:58 pm
Posted on 10/21/25 at 6:03 pm to ragincajun03
The presidential ballroom must have come in under budget!
Posted on 10/21/25 at 6:14 pm to fightin tigers
That makes sense. I’m sure they have a pipeline tied into it that cost money!
Posted on 10/21/25 at 6:44 pm to oreeg
quote:
Does this mean more F-250’s on 80-month financing out there.
I wouldn’t advise it right now, baw.
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