Energy secretary says it will take years to fill the U.S. strategic petroleum reserve
March 10, 2025
The Baker Hughes Rig Count called oil rigs unchanged keeping the total at 486 and last year there were 504 oil rigs in operation.
Crude oil is slightly higher this morning after posting the seventh weekly loss in a row on Friday. Crude fell its sharpest amount last week since the end of January as multiple headlines pressured prices lower. The news of OPEC+ production hike and the potential for peace talks in the Russia and Ukraine war were the stories putting pressure on oil prices.
On the supportive side for prices, it appears that Iranian oil flows are slowing down to China as sanctions are finally causing enough friction to upset barrel flows. With non-sanctioned super tank rates up 50% from last year, some buyers are using smaller tankers to receive oil. It will be very difficult to completely stop oil out of Iran as there are those looking for a work around.
On President Trump’s first day in office, he promised to fill the Strategic Petroleum Reserve to its full capacity as part of his policy to support the American oil and gas industry. Energy Secretary Chris Wrigth stated on Friday that the Energy Department estimated it would take $20 billion and years to accomplish. The SPR is the world’s largest emergency reserve with a capacity of about 727 million barrels and currently holds 395 million barrels.