The breakdown so far of DOE oil purchases to refill the SPR

The Department of Energy announced Tuesday that it has awarded contracts for its December purchase of 3 million barrels of crude oil for the Strategic Petroleum Reserve, the United States’s emergency supply of petroleum. This brings the total amount of oil purchased in 2023 to 13.8 million barrels — a drop in the bucket as the Biden administration attempts to refill the reserve after selling off more than 40% of its stockpile.

The December contracts would purchase the crude oil at an average price of $77.31 a barrel — hovering slightly above the average price of crude purchased throughout the year by the DOE, which was $75.63. The purchase, which was announced earlier this month, is scheduled to be delivered in March 2024.

TWELVE DAYS OF WEX-MAS: DEMOCRATS REBRANDING CANDIDATES AS TOUGH ON CRIME AHEAD OF 2024 RACE

As of Dec. 15, crude oil reserves were sitting at approximately 352.5 million barrels, according to the U.S. Energy Information Administration — levels that are roughly similar to those in the 1980s. The SPR’s oil stocks had peaked in 2011, holding more than 726 million barrels. But since then, stockpiles have declined, with the U.S. withdrawing oil more frequently in recent years. Last year, the Biden administration authorized the release of roughly 180 million barrels from the SPR — the largest sale in the country’s history. That was an effort to curb oil prices, which skyrocketed following market disruptions caused by the pandemic and the Russian invasion of Ukraine.

The DOE has made five crude oil purchases this year in attempts to refill the reserve and is expected to continue to solicit bids for oil purchases monthly until at least May 2024. So far, it has repurchased oil at an average of nearly $76 a barrel, versus an average $95 price for the barrels it sold following the invasion of Ukraine. For those 13.8 million barrels it has repurchased so far, the administration has reaped a windfall of approximately $260 million.

Earlier this month, the department finalized contracts for the purchase of 2.1 million barrels, totaling $155.8 million worth of oil. The contracts were allocated to three companies and will be distributed to the reserves in February 2024.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

In November, the DOE made two notable purchases — one for 1.2 million barrels at $93 million and another for 2.73 million barrels at $215.9 million. A total of four companies were awarded contracts, with the stocks expected to be distributed throughout January 2024.

In early June, the Energy Department finalized contracts for the purchase of 3.1 million barrels — a purchase that amounted to $227.5 million, with the average price of a barrel being roughly $73. The contracts were awarded to five companies and were delivered throughout August. Later that month, the Department announced another purchase of contracts for 3.2 million barrels — a $230.3 million purchase. The barrels were delivered to the SPR storage site in September.