US Energy Secretary Jennifer Granholm stated in Congress on Thursday that replenishing the Strategic Petroleum Reserve may take years, as the inventory has reached its lowest level since 1983 due to sales authorized by President Joe Biden last year. Granholm told state lawmakers during a congressional hearing, "This year it will be difficult for us to take advantage of this low price... but we will continue to seek it in the future because we intend to provide taxpayer dollars."
Officials from the Biden administration have expressed their desire to refill the reserve after selling approximately 180 million barrels last year in a record drawdown, aiming to do so when oil prices stabilize around $70 per barrel and after selling oil from the reserve at about $94 per barrel. The price of West Texas Intermediate crude futures fell to around $70 per barrel this week amid economic concerns related to crises in several banks. Granholm mentioned during the session that the administration is looking to repurchase oil for less than $72 per barrel.
Last year, the Department of Energy succeeded in convincing Congress to cancel previously approved sales of 140 million barrels, which were scheduled to take place from fiscal year 2024 to fiscal year 2027.
