The U.S. Department of Energy announced on Friday, March 13th, that it will release the first batch of 86 million barrels of crude oil from the Strategic Petroleum Reserve (SPR), with the expectation that it will enter the market as soon as next weekend. At the same time, the Department of Energy also ordered an increase in liquefied natural gas exports, with the preliminary daily export volume set to increase by 450 million cubic feet.
This move is in response to the surge in energy prices following the escalation of the conflict with Iran, and is part of the coordinated release of 400 million barrels of oil by the 32 member countries of the International Energy Agency (IEA).
The oil release this time will employ the “Emergency Exchange” mechanism. According to the Request for Proposal (RFP) requirements, companies that borrow crude oil will have to return the oil in the future and pay additional barrels as compensation (premium).
The Department of Energy emphasizes that this model aims to stabilize the market “without expending American taxpayer funds,” while also ensuring the retrieval of more oil in the future to strengthen strategic reserves.
Kyle Haustveit, Assistant Secretary of the Department of Energy, stated, “Today’s actions reflect President Trump’s continued commitment to maintaining U.S. energy security and making constructive contributions to global market stability.”
“Through participating in this international coordinated release action, we are assisting in ensuring reliable supply amidst increased global uncertainty,” Haustveit said. “We will continue to closely collaborate with partners to support resilient energy systems while maintaining the long-term strength and readiness of the strategic petroleum reserve.”
The large-scale oil release is to address the escalation of tensions in the Middle East. The Department of Energy points out that Iran and its proxies’ attacks have threatened the energy flow in key maritime corridors, posing risks of global supply interruptions.
Currently, the U.S. Strategic Petroleum Reserve stands at approximately 415 million barrels, an increase from 395 million barrels a year ago.
The initial release of 86 million barrels of oil will come from the Bryan Mound, West Hackberry, and Bayou Choctaw reserve bases in Texas and Louisiana. The deadline for bids from relevant companies is March 17th, US Central Time.
In addition to the oil reserves, the Trump administration is also enhancing natural gas export capacity simultaneously. Energy Secretary Chris Wright also approved an immediate 13% increase in daily LNG exports at the Plaquemines liquefied natural gas (LNG) terminal in Louisiana, with a daily export volume increase of 450 million cubic feet.
Wright emphasized, “While Iran and its terrorist proxies attempt to disrupt global energy supplies, the Trump administration remains committed to strengthening America’s energy dominance. This is due to President Trump and America’s innovators, as the U.S. is not only the largest producer and exporter of LNG, but export volumes are set to double in the coming years.”
He stated that other natural gas facilities will also increase export volumes in the coming weeks and months.