Energy Department authorizes emergency oil exchange of up to 4 million barrels
The department authorized exchanges of up to 2 million barrels each for ExxonMobil and BP America, which will return the oil with extra barrels in 2027.
AI illustrationThe U.S. Department of Energy has authorized an emergency exchange of up to 4 million barrels of crude oil from the Strategic Petroleum Reserve (SPR). The department said the step is meant to address supply disruptions caused by inclement weather in the Gulf of America.
Two companies are covered. The department authorized exchanges of up to 2 million barrels each for ExxonMobil and BP America. It said ExxonMobil's exchange will speed up deliveries of SPR crude oil that had been awarded earlier, to meet immediate supply needs.
Under the terms of the exchanges, the participating companies will return the borrowed crude oil in 2027, together with additional premium barrels. The department said this will help replenish and strengthen the reserve at no additional cost to taxpayers.
U.S. Secretary of Energy Chris Wright said the exchange shows the department acting swiftly to help keep refineries running, limit fuel supply disruptions and keep energy affordable, reliable and secure for American families and businesses. He added that the two companies will hand back more oil than they are now taking out, which he said would save taxpayers millions of dollars.
Wright also said the Trump Administration is committed to strengthening the country's energy security wherever it can.
The department said it will continue working with industry partners to support reliable fuel supplies and respond to hurricane-related disruptions.