The Biden administration announced Mar. 31 the largest-ever release of oil from the US Strategic Petroleum Reserve (SPR).
The move is an effort to lower crude prices as Russia's invasion of Ukraine has sent oil and gasoline prices soaring.
According to an official fact sheet, the White House will release 1 million b/d from the SPR over a 6-month period, for a total release of about 180 million bbl, dwarfing previous emergency releases.
This record release will provide a historic amount of supply to serve as bridge until yearend when domestic production ramps up, the White House fact sheet noted.
The Department of Energy (DOE) will use the revenue from the release to restock the SPR in future years. This will provide a signal of future demand and help encourage domestic production today and will ensure the continued readiness of the SPR to respond to future emergencies, the statement said.