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Trump administration to buy 1 million barrels of oil for national stockpile

Trump administration to buy 1 million barrels of oil for national stockpile
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The Department of Energy (DOE) is planning to buy 1 million barrels of oil from U.S. companies after funding to make a larger purchase failed to pass Congress.

A notice posted by the agency Wednesday calls the purchase “a test” for the Strategic Petroleum Reserve, a national stockpile President TrumpDonald TrumpKinzinger, Gaetz get in back-and-forth on Twitter over Cheney vote READ: Liz Cheney's speech on the House floor Cheney in defiant floor speech: Trump on 'crusade to undermine our democracy' MORE in mid-March said he would fill “right up to the top.”

The 1 million barrel purchase would be a far cry from the 77 million barrels of space within the reserve. Doing so would have required $3 billion in funds, which Congress did not appropriate as part of the CARES Act stimulus package.

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The effort comes as oil prices have fallen to historic lows due to a lack of demand and a lack of storage space for an oversupply of oil.

Democrats have repeatedly spoken out against any effort to assist the oil and gas industry during the coronavirus pandemic.

“Using federal assistance — including low-interest loans, royalty relief, tax breaks, or strategic petroleum reserve purchases — in order to prop up oil companies would be a wasteful misuse of government resources that would exacerbate the climate crisis,” Sens. Bernie SandersBernie SandersWyden: Funding infrastructure with gas tax hike a 'big mistake' The Hill's Morning Report - Presented by Facebook - Biden, Congress drawn into pipeline cyberattack, violence in Israel The Memo: Outrage rises among liberals over Israel MORE (I-Vt.), Ed MarkeyEd MarkeySenators ask airlines to offer cash refunds for unused flight credits Civilian Climate Corps can help stem rural-urban divide Senate votes to nix Trump rule limiting methane regulation MORE (D-Mass.) and Jeff MerkleyJeff MerkleySenate panel deadlocks in vote on sweeping elections bill Senate descends into hours-long fight over elections bill Senate poised for all-day brawl over sweeping elections bill MORE (D-Ore.) wrote in a letter to the president when the idea was first floated.

In April, DOE announced it would instead rent 23 million barrels of storage space in the reserve, allowing companies to pay for the space in oil. 

The 1 million barrel purchase would be open to small and mid-sized oil and gas companies. The Federal Reserve Board also tweaked its Main Street Lending Program to be accessible to the same size oil companies.

Energy Secretary Dan Brouillette told Bloomberg TV on Wednesday that he and Treasury Secretary Steven MnuchinSteven MnuchinDemocrats justified in filibustering GOP, says Schumer Yellen provides signature for paper currency Biden's name will not appear on stimulus checks, White House says MORE were asked by President Trump “to evaluate the programs that were passed by the Congress and ensure that there is access for these energy industries to those programs.”