Following U.S. and Israeli-backed attacks on Iran, energy prices have ticked up around the world. Iran closed the Strait of Hormuz, disrupting global transportation of oil, gas, and petroleum byproducts through the Middle East. Qatar’s Ras ​Laffan liquified natural gas (LNG) plant, the largest LNG terminal in the world, was shut down for several weeks after Iranian drones struck the facility. These actions have had negative downstream effects on energy prices in European and Asian nations that are dependent on energy imports from the Middle East. 

Some lawmakers, like Senate Minority Leader Chuck Schumer (D-NY), have urged the Trump administration to tap into the Strategic Petroleum Reserve (SPR) to bring immediate relief at the pump amid tensions in the Middle East. As of this writing, the U.S. average price of gasoline rose to $3.48/gallon–up from $2.92/gallon a month prior. But the price of global crude oil is falling below $100/barrel after reaching a high of $120/barrel on the morning of March 9th.

Two things are true: The SPR should be refilled, but this emergency reserve isn’t a substitute for domestic oil and gas production. Due to energy abundance policies and more production, the U.S. is expected to weather oil market volatility. 

What is the Strategic Petroleum Reserve? 

The Strategic Petroleum Reserve (SPR) is the world’s largest emergency supply of federally-owned crude oil located in underground salt caverns in coastal Texas and Louisiana. The SPR was created after then-President Gerald Ford signed the Energy Policy and Conservation Act (EPCA) of 1975 into law. This emergency stockpile became a lifeline after the Organization of Arab Petroleum Exporting Countries (OAPEC) issued an oil embargo against the U.S. in 1973.

Per a Department of Energy (DOE) fact sheet, the SPR protects “the U.S. economy from severe petroleum supply interruptions through the acquisition, storage, distribution, and management of emergency petroleum stocks.” Every nation that belongs to the International Energy Program (IEP) treaty, including the U.S., is required to have an emergency reserve containing “the equivalent of 90 days of net imports of oil and petroleum products.”

Under the EPCA, the President of the United States is allowed to authorize the crude oil withdrawals from the SPR through competitive sales. Moreover, the Energy Secretary also can authorize a limited release of five million barrels and also has the power to “authorize exchanges” (crude oil loans) to non-government entities. 

In the past half-century, the SPR has only had four emergency drawdowns. Energy Secretary Chris Wright said on March 9th the Trump administration might consider a drawdown if gasoline prices don’t decrease.

The Current Status of the SPR

Ideally, the SPR has a total capacity of 714 million barrels. Currently, it is 60 percent below capacity and is estimated to contain about 409 million barrels. 

For the last six years, doubts have been cast about the SPR’s future. Congress—not the President—appropriates funds to the DOE to purchase new supplies. 

In March 2020, the first Trump administration proposed $3 billion to refill this emergency stockpile during the COVID-19 pandemic. Congressional Democrats, unsurprisingly, blocked the amendment to the bill and deemed it a Big Oil bailout. Had funding been approved, the government would have bought 77 million barrels for $2.3 billion needed to fully refill  the SPR then.

Then came Russia’s invasion of Ukraine. The Biden-Harris administration drew down a total of 290 million barrels between 2021 and 2022 under the guise of lowering gas prices. It later became the largest withdrawal in the SPR’s history, yet led to high gas prices that, at one point, averaged over $5/gallon.  

In November 2025, the Trump administration announced the contracts were awarded to begin refilling the SPR.  In December, Rep. August Pfluger (R-TX) urged his Congressional colleagues to refill this depleted resource, writing “The biggest obstacle to doing so isn’t a lack of supply—it’s the drawn-out process of congressional appropriations, and the little motivation from lawmakers to fix it.”

One analysis suggests it’ll take between seven to eight years to entirely refill the SPR to capacity (714 million barrels) at a rate of adding three million barrels per month.

Forward-Looking: More Production to Ease Price Woes

Short-term price increases are worrying all Americans, even President Trump. On March 9th, West Texas Intermediate (WTI) crude oil futures shot up to $120/barrel then fell below at $89/barrel. WTI, like Brent and Dubai Crude, is one of three primary global benchmarks of oil pricing. 

Despite short-term increases to oil and gas costs, the fallout from U.S. strikes on Iran likely won’t lead to 2022-era prices in wake of Russia’s invasion of Ukraine. 

The policy dynamics at play are different today. The Trump administration is encouraging existing and new energy production, not actively suppressing it like the Biden-Harris administration did. 

The Wall Street Journal Editorial Board noted that, “Americans aren’t likely to feel much pain from higher power bills as they did four years ago when energy markets were shocked by Russia’s invasion of Ukraine, analysts say. They can thank ample domestic inventories, record production and capacity to export LNG from the U.S. that is—for now, at least—pretty much maxed out.”

Oil and gas production isn’t peaking globally anytime soon, either. In November, the International Energy Administration (IEA) admitted global production of oil and gas won’t peak in 2050, the same year many countries pledged to achieve net-zero emissions through fossil fuel phaseouts. That’s why Bloomberg recently declared net-zero, as a benchmark, is dead.

Under energy abundance policies, the U.S. has emerged as a global energy leader. American oil and gas could soon displace Russia and the Middle East. 

That’s why it’s imperative to refill the Strategic Petroleum Reserve while not neglecting existing or new energy production.