The US Department of Energy has approved an emergency release of up to 4 million barrels of oil from the country's Strategic Petroleum Reserve. The move was prompted by supply disruptions caused by a hurricane in the Gulf of Mexico, the department's press service said.
Under the agreements, ExxonMobil and BP America may each receive up to 2 million barrels. The companies are required to return the volumes they receive to the reserve in 2027 along with additional oil, which will allow the reserve to be replenished at no extra cost.
US Energy Secretary Chris Wright said the decision will help support refinery operations and limit fuel supply disruptions.
"By helping to minimize supply disruptions, these emergency agreements will also require Exxon and BP to return more barrels to the reserve than they are receiving now, saving taxpayers millions of dollars," he said.
The agreement with ExxonMobil provides for accelerating deliveries of oil previously allocated to the company from the Strategic Petroleum Reserve to cover current needs.
Hurricane Isaias made landfall on the Gulf of Mexico coast in Florida on the evening of October 9. At least two people died as a result of the natural disaster.
