The Biden administration recently made a significant oil purchase to replenish the Strategic Petroleum Reserve (SPR), a move that has drawn criticism from Republicans. The Department of Energy (DOE) announced the purchase of 4.65 million barrels of oil for the SPR, but the response was relatively muted, with many lawmakers unaware of the transaction.
Comparisons have been drawn to a similar proposal made by the Trump administration in 2020, which was met with opposition from Senate Democrats who viewed it as a 'bailout' for Big Oil. The Biden administration's purchase of 43.25 million barrels of oil at an average price of $77 per barrel has raised eyebrows, especially considering the higher price compared to previous years.
Senate Democrats have been less vocal about the Biden administration's oil purchase, with some pointing to the potential financial gains from buying oil at a lower price and selling it at a higher price in the future. However, concerns have been raised about the use of the SPR for political purposes rather than emergencies.
Senate Committee on Energy and Natural Resources Chairman Joe Manchin emphasized the importance of maintaining a strategic petroleum reserve and criticized both sides for what he sees as hypocritical actions. The current SPR inventory stands at 375.1 million barrels, well below its authorized storage capacity of 727 million barrels.
President Biden's decision to sell off a significant portion of the SPR since taking office has left the reserve at its lowest levels in decades. The debate over the use of the SPR and the implications of oil purchases for political and strategic reasons continues to be a point of contention among lawmakers.
