Hoeven: Administration to Make Purchase of Crude Oil for Strategic Petroleum Reserve

Hoeven Bill Provides $3 Billion for SPR Purchases To Enable DOE to Make More Purchases

WASHINGTON – Senator John Hoeven, a member of the Senate Energy and Natural Resources Committee and the Energy Appropriations Committee, today issued the following statement after the U.S. Department of Energy (DOE) announced a proposal to purchase up to one million barrels of U.S. oil for the Strategic Petroleum Reserve (SPR). To fully utilize the SPR, the DOE will need additional funding from Congress, underscoring the importance of passing the bipartisan, bicameral legislation that Hoeven is leading to provide $3 billion to purchase crude oil produced in the U.S. for the SPR. Hoeven was at the White House today with the President and Governor Doug Burgum and again emphasized the importance of supporting the state’s energy industry.

“Under this proposal, the Department of Energy intends to purchase up to one million barrels of U.S. crude. This is a good step, but DOE needs additional authority and funding to do more, which is why we need to pass our bicameral, bipartisan legislation to provide $3 billion for purchases so we can fill the SPR,” said Hoeven. “We continue working to move our bill forward to alleviate the excessive supply issues that are impacting our oil and gas producers, an essential part of our economy and national security.”

Hoeven’s SPR legislation, which he recently introduced in the Senate with Senator Doug Jones (D-Ala.) and has been introduced in the House by Representatives Lizzie Fletcher (D-Texas) and Michael Burgess (R-Texas), is part of his broader work to provide stability to global energy markets and support the nation’s energy producers through the coronavirus disease 2019 (COVID-19) pandemic. In addition to the bill, Hoeven’s work to maintain America’s capacity to produce oil and gas includes:

  • PPP Funding – Replenishing funding for the Paycheck Protection Program to provide assistance to smaller companies.
  • Ensuring Access to Credit – Working with the Administration, including Secretary Brouillette, Secretary Mnuchin and Chair Powell, to provide independent producers with access to credit under the 13(3) lending facilities, including the Main Street Lending Program.
  • Stopping Foreign Crude Dumping – Investigating Saudi Arabia, Russia and other oil-producing countries for flooding the market under Section 232 to stop crude dumping and address oversupply issues.
  • Opening the Economy – Defeating COVID-19 and safely getting the economy going again.