Energy Department Approves Release of 2 Million Barrels of Crude to Exxon

The U.S. Department of Energy approved the release of 2 million barrels of crude oil to ExxonMobil from the Strategic Petroleum Reserve (SPR) on Dec. 30 as part of an initiative begun in November by the federal government to reduce gasoline prices in the country. This is the third exchange of crude oil with ExxonMobil. Currently, the  Department of Energy (DOE)  has supplied more than 7 million barrels from the SPR in an effort to boost the fuel supply. An exchange refers to a situation in which oil entities such as refineries borrow critical supplies from SPR, which the companies have to replace in full, along with an additional amount that’s dependent on how long they kept the oil. “Exchanges usually occur during severe weather events, such as hurricanes or in response to temporary disruptions, such as pipeline blockages and ship channel closures when a facility’s normal scheduled deliveries are interrupted,” …