The Energy Department on Wednesday awarded contracts to buy 1 million barrels of crude oil, the Trump administration's first major move to rebuild the Strategic Petroleum Reserve after sharp drawdowns under the previous administration.
The department announced contracts were awarded to the most competitive bids that met all quality and specification requirements, following an Oct. 21 solicitation to purchase 1 million barrels of crude oil for delivery to the reserve's Bryan Mound site in 2025 and January 2026.
Secretary Chris Wright linked the move to fulfilling the Trump administration's energy strategy.
"President [Donald] Trump promised to protect America's energy security by refilling and managing the Strategic Petroleum Reserve more responsibly," Wright said in a statement.
"Awarding these contracts marks another step in the important process of refilling this national security asset.
"While this process won't be complete overnight, these actions are an important step in strengthening our energy security and reversing the costly and irresponsible energy policies of the last administration."
Under the prior administration, the reserve fell to its lowest level since 1983, according to the Federal Reserve Bank of Dallas.
According to the Energy Department, the reserve currently holds just over 400 million barrels. Its total capacity is about 700 million barrels.
The reserve was depleted after the previous administration's 180-million-barrel drawdown in 2022 — the move incurred nearly $280 million in costs, delayed key maintenance projects, and caused unprecedented strain on the reserve's storage and injection infrastructure, according to the department.
The administration's purchase comes amid a broader U.S. strategy to restore domestic energy resilience.
By replenishing the reserve, the government aims to hedge against global supply disruptions and bolster national security.
The initiative also aligns with policies championed by conservatives who argue that relying on foreign oil and releasing reserves during price spikes weakens long-term security.
Analysts note that the decision to buy oil for the reserve at a time of moderate prices offers an opportunity to rebuild holdings before a potential supply shock.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
© 2025 Newsmax. All rights reserved.