America’s oil stockpile is shrinking fast.
According to the
U.S. Energy Information Administration (EIA), the Strategic Petroleum Reserve (SPR) is currently at about 311.4 million barrels, a level it hasn’t seen since 1983. That’s an over 100 million barrel decline from March when the EIA recorded roughly 415 million barrels.
The most immediate reason for this drop was President Donald Trump’s decision to release
172 million barrels to stabilize energy prices as the Iran war continues.
But some argue Congress is more to blame for putting the SPR in such a weakened state.
In the not-too-distant past, there was a moment when Congress could have bought millions of barrels at bargain prices — and President Trump wanted to do just that.
At the start of the COVID-19 pandemic, President Trump ordered the Department of Energy (DOE) to capitalize on low oil prices and shore up the SPR with
77 million barrels. At that time, the price of oil was trading between
$20 and $30 a barrel, which makes the proposed
$3 billion purchase a steal compared with today’s prices in the $90-$100 range.
In hindsight, this decision looks like a no-brainer. But not all lawmakers — particularly Democrats — saw it that way. For instance, Democratic Senate Minority Leader Chuck Schumer was openly opposed to the $3 billion purchase, calling it a “bailout for big oil,” according to
CNBC.
Without enough bipartisan support for the $3 billion purchase, the DOE didn’t follow through on Trump’s directive when the
COVID-19 relief package passed. If they did, America would have closer to 388 million barrels at this time.