The US government will continue to replenish America’s strategic oil reserves. Those stocks have fallen to a 40-year low since President Joe Biden released 180 million barrels from those reserves last year because of the war in Ukraine.
According to the U.S. Department of Energy, the U.S. will buy another 6 million barrels (159 liters) in the fall. That means a total of around 12 million barrels will be bought this year. For example, if oil production is affected by a typhoon, the country uses those stocks in emergencies. Those reserves are now said to hold nearly 350 million barrels, while storage capacity is over 700 million barrels.
Also Read | The US government will continue to replenish America’s strategic oil reserves.
The ministry has indicated that more oil will be procured depending on market conditions. After the oil crisis of the 1970s, the United States built up national strategic reserves that arose after Arab oil boycotts. These are the world’s largest emergency oil reserves held in underground reservoirs in the states of Texas and Louisiana.
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