Biden administration taps emergency oil stockpile amid Louisiana gas crisis

The decision to tap the Strategic Petroleum Reserve, or SPR, comes as two-thirds of the gas stations in New Orleans and Baton Rouge are out of gasoline in the aftermath of Hurricane Ida.

Releasing oil from the SPR, which holds more than 600 million barrels of crude, could ease some of the immense pressure on the region's energy system after taking a direct hit from the Category 4 storm. The relief is being structured as an exchange, like a loan. In this case, ExxonMobil's Baton Rouge refinery will receive the 1.5 million barrels to meet a shortfall as it reopens. But Exxon will need to replace the oil, along with a premium, within about two to three months, the Energy Department spokesperson said.

"After a catastrophe, cut the bottlenecks," De Haan said, adding that he's heard from some refineries worried about where they will source oil from because of logistical problems caused by the storm."Why not open the SPR? It's not perfect. But it may be an option for some refineries." Gas stations can't pump gas without power. Refineries can't produce more fuel without power. And if there's no power, tankers can't fill up at terminal racks that dispense fuel.

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