With oil prices at the lowest prices in decades, the President has directed the U.S. government to fill its oil reserves to the brim with American crude oil.
Oil prices were in the $20 range yesterday, and the U.S. Energy Secretary Dan Brouillete said the Department of Energy is seeking to protect American oil producers from these losses. To this end, the DOE will fill the Strategic Petroleum Reserves to its maximum capacity. This comes at the direction of President Donald Trump, Thursday, March 19.
“DOE is moving quickly to support U.S. oil producers facing potentially catastrophic losses from the impacts of Covid-19 and the intentional disruption to world oil markets by foreign actors,” said Brouilete.
The DOE announced the solicitation for the purchase of 30 million barrels to begin filling the SPR today, and U.S. Congressman Garret Graves, R, 6th District of Louisiana, gave praise to this move after last week having called for the President to do so – rather than the President’s original plan to sell off oil from the SPR.
“I commend President Trump and Secretary Brouillette for taking this positive and crucial step toward stabilizing our domestic energy production and America’s energy independence. U.S. oil producers are facing severe losses from the impacts of the coronavirus, compounded by disrupting impacts of the economic warfare being carried out by Russia and OPEC, who are intentionally using the crisis to inflict further hardship on our country. Now is the right time for the president to make this move: For the first time in decades, we are seeing a decrease in global energy demand,”