The U.S. Department of Energy is suspending its plans to buy crude for the country’s Strategic Petroleum Reserve after the requested $3 billion in funding for the project was left out of the $2 trillion stimulus package.
“Given the current uncertainty related to adequate Congressional Appropriations for crude oil purchases associated with the March 19, 2020 solicitation, the Department is withdrawing the solicitation,” an amendment filed Wednesday said.
President Donald Trump first called for oil to be purchased for the SPR on March 13.
This is expected to accelerate unemployment in the oilfield sector as many companies lose faith in the Government’s ability to turn things around.