Republicans Ask US Watchdog To Assess Biden Administration's SPR Management: 'DOE's Mismanagement…Undermined America's Energy Security'

Two Republicans on Monday, including Sen. John Barrasso (R-Wyo.) and Representative Cathy McMorris Rodgers, have written a letter to the Comptroller General of the United States, asking the watchdog to assess the Joe Biden administration’s management of the Strategic Petroleum Reserve, or SPR, and conduct a programmatic audit of the SPR modernization program.

What Happened: "DOE's mismanagement of the SPR has undermined America's energy security, leaving the nation more vulnerable to energy supply disruptions, and increasing the ability for OPEC and Russia to use energy as a geopolitical weapon," the letter said.

Reuters had earlier reported the story.

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It also pointed out that the SPR inventory is at the lowest level since 1983.

"Under President Biden, DOE has overseen the largest SPR drawdown in history, selling off more than 250 million barrels, equivalent to 42 percent of the reserve, with no credible plan to replenish the stockpile. DOE has failed to establish long-term plans for the optimal size, configuration, maintenance, and operational capabilities of the reserve," it said.

The Biden administration stated last month the sales did not damage the SPR, and the lab that monitors the sites even said the record drawdown may extend the longevity of the underground storage caverns, according to Reuters.

Modernization Program: The Republican lawmakers said they were disappointed to learn that the SPR modernization program, known as Life Extension II, was put on hold by DOE, resulting in critical delays and cost overruns.

Their letter also highlighted that the DOE recently created new rules, without Congressional authorization, for "fixed-price" purchases of crude oil, rather than conventional purchase contracts.

"The failure of DOE to secure contracts to purchase oil under the new "fixed-price" bidding scheme raises serious questions about DOE's replenishment strategy and the ability of the SPR to protect the American consumers and the economy in times of emergency," the lawmakers wrote.

A DOE spokesperson told Reuters that the department is committed to refilling the reserve “in a manner that will deliver the best value for American taxpayers and protect U.S. national (and economic) security interests, while abiding by congressional mandates and undertaking necessary maintenance that is also part of good stewardship.”

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