A U.S.House committee unveiled a budget proposal on Sunday,allocating over$1.5 billion to restore and maintain the Strategic Petroleum Reserve(SPR),the world’s largest emergency crude oil stockpile.The plan also cancels a previously mandated sale of oil from the reserve.

The House Energy and Commerce Committee’s proposal includes$1.32 billion to purchase oil to replenish the SPR,which currently holds approximately 399 million barrels,far below its 727-million-barrel capacity.Additionally,$218 million is designated for facility maintenance.The measure,set for a committee vote on Tuesday,reverses a scheduled sale of 7 million barrels from the SPR through fiscal year 2027.

U.S.Energy Secretary Chris Wright stated in March:“It would take$20 billion and years to accomplish U.S.President Donald Trump’s goal of filling the SPR.”The initiative aims to support domestic energy producers during a period of relatively low oil prices.The SPR’s levels dropped significantly in 2022,reaching a 40-year low after the sale of 180 million barrels to address global supply concerns following Russia’s invasion of Ukraine.

On Monday,the Department of Energy(DOE)proposed a new rule in the Federal Register,allowing the government to purchase oil for the SPR at an indexed price that adjusts with market fluctuations,rather than a fixed price.The DOE noted:“Fixed-price contracts have only served to unnecessarily create confusion in the industry.”The previous fixed-price approach,adopted during the Biden administration,aimed to streamline rapid purchases for the reserve.The new rule will take effect in 60 days unless significant objections are raised.

The committee’s proposal aligns with efforts to strengthen energy security by bolstering the SPR,a critical resource for stabilizing domestic fuel supply.By canceling mandated sales and prioritizing replenishment,the plan seeks to ensure the reserve’s readiness for future needs while supporting the U.S.energy sector.