July 11 (UPI) — The U.S. Department of Energy announced Friday it has approved an exchange from the Strategic Petroleum Reserve, or SPR, with the ExxonMobil Corp. to ease issues that affect crude oil deliveries to the company’s Baton Rouge, La., refinery.
According to a press release from the DOE, U.S. Secretary of Energy Chris Wright sanctioned the move to help keep the regional supply of transportation fuels across Louisiana and the broader Gulf Coast stable. The DOE says this will also keep the SPR’s operational flexibility as is and won’t either impact or delay the Department’s continuing efforts toward refilling the reserve.
The agreement will provide up to one million barrels of crude oil from the SPR to ExxonMobil to support the restoration of refinery operations that had been diminished due to an offshore supply disruption. The release states that ExxonMobil will eventually return the borrowed oil, as well as an unannounced amount of additional barrels of crude to the SPR at no cost to taxpayers.
Under the exchange agreement, DOE will provide up to 1 million barrels of crude oil from the SPR. The exchange will support ExxonMobil’s restoration of refinery operations that were reduced due to an offshore supply disruption. ExxonMobil will return the borrowed crude along with additional barrels of crude oil for the SPR at no cost to the taxpayer.
“Investing in American energy enables energy independence and truly unleashes America’s ability to serve as the world leader in global energy,” Wright said in an X post Friday.