President Joe Biden said on Feb. 24 the U.S. is working with other countries on a combined release of additional oil from global strategic crude reserves, and a source with knowledge of the talks said the plan was in the “early stages.”
Prices for international crude benchmark Brent shot above $105/bbl after Russia, one of the world’s top oil producers, attacked Ukraine. High oil prices have fed inflation as fuel demand recovers from the pandemic.
“We are actively working with countries around the world to elevate collective release from the strategic petroleum reserves of major energy-consuming countries,” Biden told reporters. “The United States will release additional barrels of oil as conditions warrant.”
A U.S. source with knowledge of the talks said before Biden spoke: “We are exploring through the IEA,” referring to the Paris-based International Energy Agency (IEA), which said this week it stands ready to tap reserves. “We are on Day 1 [of Russia’s attacks], so still working on timing, et cetera,” for the oil release, the source said.
The IEA, the energy watchdog for developed countries, did not immediately respond to a request for comment.
The plan would be in addition to a coordinated release of oil stockpiles with China and other Asian consumer countries organized by Washington last November to combat energy inflation. So far, the U.S. has released about 50 million barrels of oil from its Strategic Petroleum Reserve (SPR) through sales and exchanges, while China has mostly held off from releasing its oil.
The extent to which China, an affiliate of the IEA, is involved in the new plan was not immediately clear.
The White House’s National Security Council did not immediately respond to a request for comment.
Japan and Australia said on Feb. 24 they were prepared to tap their oil reserves, together with other IEA member nations, if global supplies were hit by the violence in Ukraine.
Total oil stocks in IEA nations stood at close to 4.16 billion barrels by the end of December, including 1.5 billion held by governments in emergency reserves, the agency said this week.
In 2011, the last major coordinated oil release, the U.S. and its IEA allies released a total of 60 million barrels of oil into global markets in response to curtailments in crude output in Libya due to civil war.
The U.S. SPR currently holds about 582.4 million barrels of oil, the lowest level in years, but well above what it is required to hold as an IEA member.
Recommended Reading
Formentera Joins EOG in Wildcatting South Texas’ Oily Pearsall Pay
2025-01-15 - Known in the past as a “heartbreak shale,” Formentera Partners is counting on bigger completions and longer laterals to crack the Pearsall code, Managing Partner Bryan Sheffield said. EOG Resources is also exploring the shale.
Norway Awards Equinor 27 Production Licenses in Latest Round
2025-01-14 - Equinor ASA, Aker BP ASA, Vår Energi ASA and DNO ASA were selected for the most offshore licenses in Norway’s annual licensing rounds.
ADNOC Contracts Flowserve to Supply Tech for CCS, EOR Project
2025-01-14 - Abu Dhabi National Oil Co. has contracted Flowserve Corp. for the supply of dry gas seal systems for EOR and a carbon capture project at its Habshan facility in the Middle East.
E&P Highlights: Jan. 13, 2025
2025-01-13 - Here’s a roundup of the latest E&P headlines, including Chevron starting production from a platform in the Gulf of Mexico and several new products for pipelines.
Atlas Energy’s Dune Express Makes First Proppant Delivery to NM
2025-01-13 - Atlas Energy Solutions’ 42-mile Dune Express fully electric conveyor system delivered its first commercial load of proppant sand from Texas to New Mexico on Jan. 12.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.