The U.S. Department of Energy has authorized an emergency exchange of up to 4 million barrels of crude oil from the Strategic Petroleum Reserve (SPR). The department said the move addresses supply disruptions caused by inclement weather in the Gulf of America.
Who gets the barrels
The department authorized exchanges of up to 2 million barrels each for ExxonMobil and BP America. ExxonMobil's exchange will speed up deliveries of SPR crude that was awarded earlier, to meet immediate supply needs.
Repayment in 2027
Under the terms, the participating companies will return the borrowed crude with additional premium barrels in 2027. DOE said this helps replenish and strengthen the reserve at no additional cost to taxpayers.
Secretary of Energy Chris Wright said the exchanges require Exxon and BP to return more barrels than are being withdrawn now, which he said will save taxpayers millions of dollars.
Stated purpose
Wright said the department is acting to help maintain refinery operations and limit disruptions to fuel supplies. He said the goal is for American families and businesses to keep access to affordable, reliable and secure energy.
DOE said it will keep working with industry partners to support fuel supplies and respond to hurricane-related disruptions. This is an exchange rather than a sale: the crude is lent out and comes back with extra barrels attached.
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