The U.S. Department of Energy’s decision to release up to 1 million barrels of crude oil from the Strategic Petroleum Reserve to ExxonMobil is a targeted response to offshore supply disruptions affecting the Baton Rouge refinery. This temporary exchange helps stabilize transportation fuel supplies across Louisiana and the Gulf Coast during peak demand, without impacting the ongoing SPR refill or incurring additional costs to taxpayers. ExxonMobil will return the oil along with additional barrels, preserving the reserve’s operational flexibility. It’s a practical move that supports energy stability and national security. They write:
The U.S. Department of Energy (DOE) today announced the authorization of an exchange from the Strategic Petroleum Reserve (SPR) with ExxonMobil Corporation to address logistical challenges impacting crude oil deliveries to the company’s Baton Rouge refinery. U.S. Secretary of Energy Chris Wright authorized this action to help maintain stable regional supply of transportation fuels across Louisiana and the broader Gulf Coast. This action preserves the SPR’s operational flexibility and will not impact or delay the Department’s ongoing efforts to refill the reserve.
Under the exchange agreement, DOE will provide up to 1 million barrels of crude oil from the SPR. The exchange will support ExxonMobil’s restoration of refinery operations that were reduced due to an offshore supply disruption. ExxonMobil will return the borrowed crude along with additional barrels of crude oil for the SPR at no cost to the taxpayer.
The Department remains in close coordination with industry partners to ensure stability in the fuel supply chain during the peak demand season. DOE continues to encourage refiners to prioritize efficient production and delivery of refined fuels, stands ready to support the nation’s energy security through the responsible use of strategic resources, and will continue to deliver on President Trump’s commitment to protect American energy security by refilling the SPR.
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