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It could take years for the US to refill its emergency oil reserves after last year's record sales

Mar 24, 2023, 20:31 IST
Business Insider
Oil barrels.Getty Images
  • It could take years to stock up the US emergency oil reserves after 2022's historic sales, per Reuters.
  • Last year, President Joe Biden ordered the release of 180 million barrels from crude reserves in a bid to lower gas prices.
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It could take years for the United States to replenish its emergency oil reserves after last year's record sales aimed at easing gas prices, according to energy secretary Jennifer Granholm.

"This year, it will be difficult for us to take advantage of this low price," Granholm said Thursday during a congressional hearing, per Reuters. "But we will continue to look for that low price into the future because we intend to be able to save the taxpayer dollars," she added.

The US strategic petroleum reserve is kept in huge underground salt caverns at four major facilities in Texas and Louisiana. According to Granholm, maintenance costs at two of the reserve's four sites as well as 2022's historic sale will make it difficult to buy back oil this year.

Last year, President Joe Biden marked history after ordering the release of 180 million barrels of crude oil from the the Strategic Petroleum Reserve (SPR) – the world's largest supply of emergency crude oil – in a bid to tame soaring prices at the pump for Americans and tamp down inflation, partly fueled by Russia's war with Ukraine.

Now, the SPR holds about 372 million barrels, the lowest level since January 1985.

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Gas prices soared above $5 a gallon last summer, but have since cooled to around $3 a gallon, per AAA. The spike in price tracked surging oil prices, which shot past $120 a barrel last March.

Brent crude oil has lost around 40% from March highs, while WTI crude, the US benchmark price, has dropped around 43%.

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