A statement from the US Department of Energy said it will make 30 million barrels of emergency oil storage available “for producers struggling to sell on fuel due to the glut in the market.” Furthermore, it has said it plans to free up a further 47 million barrels of storage “if it is needed”.
Dan Brouillette, US Secretary of Energy, said Congress was “working on ways to free up funding” to buy American oil, but in the meantime the emergency storage “will come as great relief to local producers that are currently struggling”.
He added: “Filling the SPR with crude oil, produced by American companies that are facing catastrophic losses and increased financial hardship, is a logical action for the federal government to take as we work to overcome the economic disruptions caused by COVID-19 and intentional, global oil market disruptions.”
The first crude shipments will begin to arrive at the end of the month, with plans for the SPR to receive 685,000 barrels per day, the DoE said in the same statement.
For more information visit www.energy.gov