The Department of Energy has recently taken steps to replenish the Strategic Petroleum Reserve (SPR) after essentially lending some to oil corporations. As of early December, the department announced it had initiated an arrangement to facilitate the return of borrowed oil, which marks an important phase in its aim to restore the SPR to its original capacity.
1. The Department of Energy has initiated a plan to replenish the Strategic Petroleum Reserve (SPR) after lending oil to oil corporations.
2. This action represents an important step towards restoring the SPR to its original capacity.
3. The department has made an agreement with Gulf Coast refiners to return approximately 2.2 million barrels of oil to the reserve in spring 2021.
4. The lending of oil to companies occurred during the 2020 demand slump caused by the Covid-19 pandemic as a strategic measure to stabilize the oil market.
5. As part of the agreement, those companies who borrowed oil will now replenish the SPR by returning the borrowed quantity.
As of August 2021, the Strategic Petroleum Reserve held approximately 621.3 million barrels of oil.
Agreement with Gulf Coast refiners to return about 2.2 million barrels to the stockpile in spring 2021. This move comes after the department essentially lent some oil to companies during the 2020 demand slump caused by the Covid-19 pandemic. The goal of this strategic measure was to help stabilize the oil market during unprecedented times. Now as part of the agreement, those companies will replenish the Strategic Petroleum Reserve (SPR) by returning the borrowed oil.