By Timothy Gardner

WASHINGTON (Reuters) – The Biden administration announced on Friday it has purchased its final batch of oil for the Strategic Petroleum Reserve (SPR) after selling a record amount in 2022 to combat rising fuel prices due to Russia's invasion of Ukraine.

The Department of Energy revealed it secured 2.4 million barrels of oil for the reserve, which will be delivered to the SPR's Bryan Mound, Texas site from April to May.

This acquisition has depleted the department's funds for future purchases. The 2022 sale of 180 million barrels raised nearly $17 billion in emergency revenue for buybacks, but Congress rescinded about $2.05 billion to help reduce the national deficit.

The Biden administration has since repurchased 59 million barrels post-sale at an average price below $76 per barrel, significantly lower than the $95 per barrel selling price in 2022. According to the DOE, this maneuver resulted in a profit of approximately $3.5 billion.

U.S. Secretary of Energy, Jennifer Granholm, emphasized that this action underscores the administration's commitment to prioritizing the economic and energy security of American citizens, helping stabilize pump prices, providing industry stability, and maintaining the SPR as the world’s largest emergency crude oil supply.

The administration collaborated with Congress to cancel previously mandated sales of 140 million barrels of SPR oil through 2027, a decision supported by both Democratic and Republican lawmakers.

Incoming President Donald Trump will need to work with Congress to replenish the department's purchasing fund, with intentions to add oil to the SPR.

The 2022 sale, consisting of 180 million barrels over a six-month period, marked the largest sale ever from the SPR, significantly impacting U.S. gasoline prices which exceeded $5 a gallon in June 2022.

Critics noted that this sale decreased SPR levels to their lowest in 40 years, under 350 million barrels, sparking concerns over U.S. energy security. Currently, the SPR holds nearly 390 million barrels, compared to its highest level of nearly 727 million barrels in 2009.

The U.S. is now recognized as the leading oil and gas producer globally, attributed to advancements in fracking and horizontal drilling techniques, offering greater energy security than in the mid-1970s when the SPR was established in response to oil supply disruptions like the Arab oil embargo.