The US House Energy and Commerce Committee has proposed a budget that allocates $2bn to replenish and maintain the Strategic Petroleum Reserve (SPR), considered to be the world's largest emergency oil stockpile.
The proposal, unveiled late Sunday, includes $1.32bn for oil purchases to refill the SPR and $218m for maintenance, with the remaining funding allocated for the buyback of previously mandated sales from the SPR.
This move comes after the reserve's stocks were significantly depleted in 2022, with sales reaching an historic high due to geopolitical tensions.
The Department of Energy (DOE) had bought 4.65 million barrels (mbbl) of crude for the SPR in July 2024, with total acquisitions since 2022 surpassing 40mbbl.
These purchases followed former President Joe Biden's announcement in March 2022 to sell 180mbbl from the SPR over six months to address surging energy prices, a result of Russia's invasion of Ukraine.
US Energy Secretary Chris Wright had previously estimated that refilling the SPR to its full capacity of approximately 727mbbl would require $20bn and several years, reported Reuters.
Currently, the SPR holds around 399mbbl.
The committee's initiative aligns with President Donald Trump's objective to support domestic energy producers amid relatively low oil prices.
The committee, led by Trump's Republican allies, is also looking to revise funding in areas such as grants and loan financing from the Inflation Reduction Act, a key piece of climate legislation from Biden's presidency, the report said.
The House's proposal, which is set for a committee vote on Tuesday, also seeks to repeal the mandated sale of 7mbbl from the SPR through fiscal year 2027 (FY27).
The Biden administration had previously worked with Congress to cancel such mandated sales to prevent further reductions in the SPR's levels.
In a related development, the DOE has issued a proposal that would allow the government to buy oil for the SPR at an indexed price, which could fluctuate with the market.
This contrasts with the fixed-price rule adopted by the Biden administration, which was intended to facilitate rapid purchases for the reserve.
The DOE has stated that the fixed-price contracts have caused confusion in the industry.
