Washington, Oct 11 (IANS) The United States has authorised an emergency exchange of up to four million barrels of crude oil from its Strategic Petroleum Reserve to prevent fuel supply disruptions caused by severe weather in the Gulf region, the Department of Energy has announced.
The decision, announced on Saturday, allows energy giants ExxonMobil and BP America to obtain up to two million barrels each from the country’s emergency oil stockpile.
The move is intended to keep American refineries operating and protect fuel supplies as hurricane-related disruptions affect the movement of crude oil.
Under the arrangement, the two companies will return the borrowed oil in 2027, along with additional barrels as a premium.
Energy Secretary Chris Wright said the emergency action was necessary to maintain supplies and prevent disruptions from affecting American consumers and businesses.
“With this emergency exchange, the Energy Department is acting swiftly to help maintain refinery operations, limit disruptions to fuel supplies, and ensure American families and businesses continue to have access to affordable, reliable, and secure energy,” Wright said.
The department said the arrangement would also strengthen the country’s strategic oil reserves because the companies would be required to return more crude than they received.
Wright said the government expected the additional barrels to generate savings for taxpayers.
The authorisation comes as the Trump administration seeks to maintain stable domestic energy supplies while responding to weather-related interruptions in the Gulf region, which is home to major American oil production, refining and transportation infrastructure.
The Energy Department said ExxonMobil’s allocation would accelerate deliveries of crude oil already awarded to the company under an earlier Strategic Petroleum Reserve arrangement.
This would allow the company to address immediate supply requirements without waiting for the original delivery schedule.
BP America has separately been authorised to receive up to two million barrels under the emergency arrangement.
The Energy Department said it would continue coordinating with industry partners to maintain reliable fuel supplies and respond to further hurricane-related disruptions.
The decision also comes against the backdrop of broader American efforts to use strategic oil reserves to address supply pressures.
On September 29, the department issued a separate request for proposals covering up to 40 million barrels of crude oil under an earlier, larger emergency exchange programme.
That programme forms part of the Trump administration’s commitment to release 172 million barrels in coordination with a wider international effort involving members of the International Energy Agency.
The Strategic Petroleum Reserve was established in the 1970s following the global oil crisis to provide the United States with emergency crude supplies during major disruptions.
–IANS
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