Biden administration launches plan to replenish U.S. oil reserves

The Biden administration on Thursday announced a plan to replenish the country's emergency oil reserves after President Biden promised to offset energy costs by releasing 180 million barrels over six months, CNN reports.

The administration will seek bids to buy 60 million barrels of crude oil from companies this coming fall, "the first step in a years-long" replenishment process, CNN writes. Officials want the plan to convey how serious they are about refilling the nation's Strategic Petroleum Reserve, the largest emergency supply of oil in the world.

Delivery of the first 60 million barrels will take place in "unspecified future years," CNN writes per an Energy Department official, and will be paid for with revenue from ongoing emergency sales.

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Oil reserves were already "sitting at 20-year lows, largely because of congressionally-mandated sales" that came before Biden's record-setting promise.

"As we are thoughtful and methodical in the decision to drawdown from our emergency reserve, we must be similarly strategic in replenishing the supply so that it stands ready to deliver on its mission to provide relief when needed most," said Energy Secretary Jennifer Granholm.

The White House also hopes its plan will bolster domestic oil production by "guaranteeing a source of future demand," CNN writes.