U.S. President Donald Trump has announced his administration’s plan to “fill the U.S. Strategic Oil Reserve (SPR) right to the top.” During his inaugural address at Capitol Hill on Monday, Trump pledged to “lower prices, refill our strategic reserves to full capacity, and export American energy worldwide.” This comes after the SPR saw significant depletion during President Joe Biden’s term.
A look back at history highlights how energy security has always been a cornerstone of national economic stability. The 1973 oil crisis prompted the U.S. to establish the SPR as a safeguard against supply chain disruptions. To this day, the U.S. remains one of the world’s largest strategic oil reserve holders, with its reserves historically maintained at approximately 700 million barrels, accounting for 15% of global reserves.
However, following the outbreak of the Russia-Ukraine war in 2022, the Biden administration sold 180 million barrels of crude oil onto the global market in an attempt to bring down gasoline prices. After this record-breaking selloff, the SPR has dropped to 394.4 million barrels—its lowest level since the 1980s. To return the reserve to levels seen during Trump’s previous term, the U.S. would need to purchase close to 300 million barrels of crude oil.
While the Biden administration had initiated the gradual replenishment of the SPR, their efforts halted after purchasing approximately 60 million barrels due to exhausted funds. To continue buying crude oil, Congress would need to pass an appropriations bill to allocate more funds to the Energy Department’s petroleum account.
It’s worth noting that Trump also announced plans to declare a national energy emergency, reiterating his campaign promise to expand oil and gas extraction. A White House official stated that the energy emergency declaration would “unlock a variety of powers” to increase resource production but did not disclose specific details about the powers Trump plans to utilize.
