Welcome to the Reuters.com BETA. Read our Editor's note on how we're helping professionals make smart decisions.
Read more
Sign In
June 24, 20211:51 PM PDTLast Updated a month ago
U.S. infrastructure deal includes $6 billion sale from oil reserve -document
Timothy Gardner

3 minute read
An oil storage tank and crude oil pipeline equipment is seen during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson
WASHINGTON, June 24 (Reuters) - The infrastructure deal struck by a group of bipartisan senators and President Joe Biden on Thursday includes partial funding by a proposed $6 billion sale from the U.S. emergency oil reserve, according to a document circulated by Republican lawmakers.
A sale of that size equals a drawdown of about 82 million barrels, based on Thursday's price of $73 a barrel for West Texas Intermediate crude. That represents about 13% of the reserve's current holdings of nearly 624 million barrels of oil, though if prices rise, the volume of oil would shrink.
The deal was a step forward for the $1.2 trillion bipartisan Senate package, but the battle is not over. read more Biden's fellow Democrats are also working on a companion bill to include more money to address climate change, but could only be passed on a party line vote in a process called reconciliation.
The effort to pass the bills could extend into September and beyond.
A document released by the White House also confirmed that the deal calls for partial financing by a sale from the Strategic Petroleum Reserve (SPR), but did not say how much money would be raised. The Republican document did not detail the time period over which the sale would take place.
The White House said the deal includes $73 billion for electricity grid improvements, including the building of thousands of miles of transmission lines to deliver power from renewable energy projects, and a new Grid Authority. The investments could help boost use of electric vehicles, reducing demand for fuels refined from crude oil while curbing carbon emissions.
The deal also includes $21 billion for environmental remediation, much of which could go toward cleaning up abandoned coal and hardrock mines and oil and gas wells, while providing jobs in communities that have long relied on work producing fossil fuels.
The SPR, held in several salt caverns on the Texas and Louisiana coasts, has been tapped before to fund the federal government, medical research and a modernization of the facility under laws passed in 2015 and 2016. In 2015, the government agreed to sell 58 million barrels between 2018 and 2025.
Some oil has been sold from the facility to modernize the SPR because its pipes and valves are constantly exposed to salty air and occasionally hit by strong storms, including hurricanes.
The SPR, which holds far more oil than the United States is required to under global energy security agreements, has also invested in infrastructure to send oil to markets.
Reporting by Timothy Gardner; Editing by Dan Grebler
Our Standards: The Thomson Reuters Trust Principles.
More from Reuters
Play video on original page

Read Next
India's factory growth rebounded in July, hiring resumed after 15 months
10:11 PM PDT
Asia Pacific
Asian factory activity hit by rising costs, Delta variant
10:10 PM PDT
Oil prices fall on worries over China economy and higher crude output
10:04 PM PDT
HSBC profit more than doubles as economies rebound, loan-loss fears ebb
9:41 PM PDT

Sign up for our newsletter
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Business · 9:14 PM PDT
Twitter's Dorsey leads $29 bln buyout of lending pioneer Afterpay
Square Inc (SQ.N), the payments firm of Twitter Inc (TWTR.N) co-founder Jack Dorsey, will purchase buy now, pay later (BNPL) pioneer Afterpay Ltd (APT.AX) for $29 billion, creating a global transactions giant in the biggest buyout of an Australian firm.
Asian factory activity hit by rising costs, Delta variant
10:10 PM PDT
HSBC profit more than doubles as economies rebound, loan-loss fears ebb
9:41 PM PDT
Asian shares try to stabilise, China growth a worry
8:05 PM PDT
Square reports over 143% jump in revenue in Q2
3:26 PM PDT
About Reuters
About Reuters
Reuters News Agency
Brand Attribution Guidelines
Reuters Leadership
Reuters Fact Check
Reuters Diversity Report
Stay Informed
Download the App
Information you can trust
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Follow Us
Thomson Reuters Products
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Refinitiv Products
Information, analytics and exclusive news on financial markets - delivered in an intuitive desktop and mobile interface.
Refinitiv Data Platform
Access to real-time, reference, and non-real time data in the cloud to power your enterprise.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
Advertise With Us
Advertising Guidelines
Terms of Use
Site Feedback

All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved