Geopolitics

Half of US Strategic Petroleum Reserve Releases Sent to Europe Under Current Administration

Redacted · They're HIDING THIS! America May Run Out of Emergency Oil THIS MONTH · July 2, 2026

Redacted

They're HIDING THIS! America May Run Out of Emergency Oil THIS MONTH

"Half of all the SPR barrels that have been released have gone overseas. So this is Trump using America's SPR to help keep prices a little bit cheaper in Europe. And last I checked, Europe doesn't even like us that much."

Chris Martinson reveals that 50% of Strategic Petroleum Reserve releases have been exported to Europe, including to Germany, rather than used domestically. This comes as the U.S. drains its emergency oil stockpile to historic lows while American consumers still face high gas prices. Martinson argues this policy uses American strategic reserves to subsidize European energy prices following the destruction of the Nord Stream pipeline.

About this episode

Hosts Natalie and Clayton interview energy analyst Chris Martinson about alarming findings from a 123-page government report on America's Strategic Petroleum Reserve that he analyzed in detail. Martinson reveals the SPR has been drawn down to its lowest level since 1983, when the reserve was still being filled, and calculates that at current drawdown rates, the reserve could be effectively depleted by July 2025, or at latest October if accounting for statutory minimums. The reserve currently sits at approximately 323 million barrels, but federal law requires maintaining 243 million barrels unless the Department of Defense approves further releases, leaving only 80 million barrels available. Martinson explains that roughly 130 million barrels are stored in single-cycle salt caverns that collapse once emptied and cannot be refilled, permanently reducing storage capacity. He discloses that half of all SPR releases have been exported to Europe rather than used domestically, effectively using American strategic reserves to subsidize European energy prices. Despite falling crude oil prices that President Trump has celebrated, Martinson explains that refinery crack spreads remain at levels equivalent to $110 per barrel oil due to historically tight gasoline and diesel inventories. He argues current policy creates an illusion of cheap energy by draining emergency stockpiles while stimulating demand, leaving America vulnerable to supply shocks. Unlike previous SPR releases that were outright sales, current releases require repayment with a 20% premium, creating future demand pressure. Martinson criticizes the disconnect between wholesale crude prices and tight physical inventories, suggesting market prices do not reflect supply reality.

Key takeaways

Chris Martinson warns America's Strategic Petroleum Reserve could be depleted by July 2025 at current drawdown rates, with only 80 million barrels available above statutory minimums.
The SPR has been drawn to its lowest level since 1983 when it was still being filled, now sitting at approximately 323 million barrels.
Half of all Strategic Petroleum Reserve releases have been exported to Europe rather than used domestically to lower American gas prices.
Approximately 130 million barrels are stored in single-cycle salt caverns that permanently collapse once emptied and cannot be refilled, reducing future storage capacity.
Current SPR releases require repayment with a 20% premium, creating future demand pressure when barrels must be returned.
Despite crude oil prices around $68 per barrel, refinery crack spreads remain at levels equivalent to $110 oil due to historically tight gasoline and diesel inventories.
U.S. petroleum consumption in May 2025 was 2.6% higher than the previous year, indicating demand remains elevated as reserves dwindle.