House Republicans introduced a budget reconciliation proposal this week that includes $1.54 billion in funding to restore and repair the Strategic Petroleum Reserve (SPR), which was heavily depleted during the Biden-Harris administration.
The proposal also seeks to cancel a scheduled sale of 7 million barrels planned for fiscal years 2026 and 2027.
The move comes just days after Energy Secretary Chris Wright criticized the Biden-Harris administration’s drawdown of the SPR during an interview on Blaze TV.
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Speaking with Glenn Beck, Wright said the former administration’s rapid depletion of the oil stockpile for political purposes had physically damaged the underground salt caverns where the oil is stored.
Wright estimated that refilling the SPR could take between four and six years, describing the effort as critical to national security.
“We are dead-set committed to do it,” Wright said.
The Department of Energy announced in April that Strategic Storage Partners, LLC had been awarded a $1.4 billion contract to manage and operate the SPR, replacing Fluor Federal Petroleum Operations, which had held the contract since 2013.
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A transition between the two contractors is currently underway.
The selection of Strategic Storage Partners prompted questions from industry analysts, including Patrick De Haan of GasBuddy, who noted on X that the company had “virtually no history.”
Control and management of the U.S. Strategic Petroleum Reserve has been turned over by the DOE to a company with virtually no history: Strategic Storage Partners, LLC, with the U.S. Government paying $1.4 billion or $280 million every year to have it managed. 😳🤔
— Patrick De Haan (@GasBuddyGuy) April 3, 2025
According to the DOE, Strategic Storage Partners submitted the winning bid in collaboration with Aptim Federal Services, LLC, based in Baton Rouge, Louisiana, and BWXT Technical Services Group, located in Lynchburg, Virginia.
“APTIM is honored to serve the DOE, the talented and committed SPR workforce, and the nation,” said APTIM CEO Mark Fallon in a public statement.
“APTIM and our partner BWX Technologies will bring the experience, resources, and commitment required to deliver.”
At the beginning of Joe Biden’s term in January 2021, the SPR held more than 638 million barrels of oil.
By the time President Donald Trump returned to office in January 2025, the reserve had been reduced to approximately 395 million barrels.
It currently holds about 399 million barrels, according to the U.S. Energy Information Administration.
In 2022, amid rising gas prices and political pressure ahead of the midterm elections, the Biden-Harris administration authorized the largest-ever emergency release from the SPR—180 million barrels—following the temporary shutdown of the Keystone pipeline.
Additional non-emergency congressional sales between 2021 and 2023 removed another 81 million barrels.
Energy Secretary Wright criticized the 2022 release, stating the SPR was never intended to be used as a political tool to influence gas prices.
“It’s for when a very bad day happens. The world literally runs on oil,” he said.
.@SecretaryWright tells me Biden drained the Strategic Petroleum Reserve for POLITICS: “It will take us 4-6 years to refill…we are dead set committed to do it. But [Democrats] compromised our national security for YEARS to get a little bit of an electoral advantage in 2022.” pic.twitter.com/2ogCEG6sDs
— Glenn Beck (@glennbeck) May 9, 2025
The SPR stores crude oil in 61 salt caverns across four sites along the Gulf Coast in Texas and Louisiana.
These caverns, more than 2,500 feet deep and 200 feet wide, were designed for long-term storage.
However, frequent withdrawals and natural geological pressure have caused deformation and shrinkage.
Wright stated that the Biden-era drawdowns caused significant physical damage, estimating $100 million in necessary repairs.
.@SecretaryWright was able to do in 100 days what was predicted would take years:
⚡️Energy prices = Lowered
🔌Consumer freedom = Restored
❌Red tape = Slashed
💡Common sense = Returned✅AFFORDABLE, RELIABLE, & SECURE energy = UNLEASHED!
— U.S. Department of Energy (@ENERGY) May 15, 2025
The Republican budget proposal includes $218 million specifically allocated for those repairs.
APTIM declined to comment when asked by Just the News about the nature and scope of the repairs.
Tim Stewart, president of the U.S. Oil and Gas Association, described the SPR as America’s insurance policy against global instability.
“Think of them as a strategic middle finger to embargoes or supply-chain disruptions,” Stewart told Just the News.
He added that purchasing oil to refill the SPR also helps stabilize market prices by creating short-term domestic demand.
“It’s a good deal for taxpayers because the secretary is refilling the reserves at a reasonable price and renegotiating the terms of an insurance policy against global price shocks,” Stewart said.
Presidents have authorized SPR releases in emergencies three times before: 31 million barrels in 2011 (Libya conflict), 11 million in 2005 (Hurricane Katrina), and 17.3 million in 1991 (Operation Desert Storm).
Biden’s 2022 release far surpassed those in scale and came during an election year, raising criticism over its timing and intent.
Full replenishment and repair of the SPR could take until 2032 or later, depending on oil prices and procurement timelines.
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