The U.S. government authorized the release of four million barrels of crude oil from the Strategic Petroleum Reserve (SPR) on Sunday. The emergency measure is intended to help ExxonMobil and BP keep their refineries operating amid supply disruptions caused by Hurricane Isaias in the Gulf of Mexico.
The hurricane made landfall on Friday. It forced the shutdown of more than two-thirds of the Gulf’s daily oil production, or almost 1.5 million barrels.
Under the emergency exchange, ExxonMobil and BP can each receive up to two million barrels. The companies can use the crude to offset the production halt and maintain refinery operations.
The Department of Energy said the companies must return the crude to the SPR in 2027, along with a premium. The release underscores the storm’s immediate impact on U.S. energy infrastructure and supply chains.