U.S. Energy Secretary Chris Wright has estimated that refilling the Strategic Petroleum Reserve (SPR) to its maximum capacity would require approximately $20 billion and take several years. This comes in response to President Donald Trump’s goal of restoring the reserve to full capacity as part of a broader policy to bolster the country’s oil and gas sector.
Trump has been vocal about his commitment to replenishing the SPR since taking office, emphasizing the importance of maintaining a strong oil reserve for national security and economic stability. However, the Energy Department clarified that no formal budget request has been submitted to Congress at this time.
Impact of Past SPR Sales
The SPR, initially established in 1975 following the 1973 Arab oil embargo, serves as the world’s largest emergency crude oil stockpile. It has a storage capacity of around 727 million barrels but currently holds about 395 million barrels due to significant withdrawals by the previous administration.
During Joe Biden’s presidency, nearly 300 million barrels were sold from the reserve, including a substantial 180-million-barrel release in 2022 following Russia’s invasion of Ukraine. These sales led to the SPR reaching its lowest level in 40 years, a move criticized by Trump, who argued that the reserve should have been preserved rather than used to curb fuel prices.
Budgetary and Logistical Considerations
While the estimated $20 billion investment could secure around 301 million barrels at current crude prices, this would still leave the reserve slightly below full capacity. Wright acknowledged that restoring the SPR to near-maximum levels would be a complex and lengthy process, requiring careful budgeting and strategic planning.
The Energy Department has indicated that securing congressional approval for such a large budget allocation would not be an immediate priority, given competing financial demands, including national security and infrastructure projects. Furthermore, the department would need to manage the physical constraints of the underground salt caverns along the Texas and Louisiana coasts, where the oil is stored. Frequent transfers of oil in and out of these caverns can cause wear and tear, leading to potential long-term storage challenges.
Potential Policy Adjustments
One potential strategy to maintain the SPR’s integrity while working toward a refill could involve canceling remaining congressionally mandated oil sales. By halting these scheduled withdrawals, the administration would prevent unnecessary strain on the storage facilities and allow for a more gradual and controlled replenishment process.
Energy analysts suggest that such an approach would help minimize damage to the reserve’s infrastructure while aligning with broader energy security goals. As discussions continue, the Energy Department will likely explore various funding and logistical options to restore the SPR efficiently while balancing budgetary constraints.