U.S. Plans $20 Billion Push to Refill Oil Reserves

U.S. Energy Secretary Chris Wright is seeking up to $20 billion to refill the nation’s depleted Strategic Petroleum Reserve per Bloomberg Economics. The plan fulfills President Donald Trump’s goal of restoring the stockpile to its maximum capacity after historic drawdowns. It signals a shift toward energy security amid global supply uncertainties.

The reserve hit a 40-year low in 2023 after the Biden administration released 180 million barrels to tame gas prices. Trump campaigned on reversing that depletion arguing it weakened America’s leverage against oil shocks. Wright’s proposal would fund purchases to bring the reserve back to its 714 million barrel peak.

Current oil prices hover around $75 per barrel making the $20 billion estimate feasible though costs could rise. The Energy Department plans to buy from domestic producers boosting U.S. energy firms. Critics warn this could strain taxpayers and divert funds from renewable energy priorities.

Wright a Trump appointee with fossil fuel ties framed the refill as vital for national defense. He cited Russia’s war in Ukraine and Middle East tensions as risks to global oil flows. Supporters say a full reserve deters adversaries and stabilizes markets during crises.

Environmentalists oppose the move arguing it doubles down on oil dependency over cleaner alternatives. They note the reserve’s emergency role doesn’t justify such a massive investment now. Democrats in Congress plan to challenge the funding calling it a giveaway to Big Oil.

The administration aims to start purchases in late 2025 pending Congressional approval of the budget. Logistical hurdles like pipeline capacity and storage maintenance could slow the process. Past refill efforts have faced delays raising doubts about the timeline.

Trump has touted the plan as a win for American workers and energy independence. He claims it will create jobs in states like Texas while countering OPEC’s influence. Opponents counter that it ignores climate goals and locks in reliance on a finite resource.

This push reflects broader tensions between short-term security and long-term sustainability in U.S. energy policy. As Wright lobbies for the funds the debate will test Trump’s economic vision. The reserve’s future could hinge on political battles in Washington over the next year.