reserve refill

DOE taps Texas companies for $56M in Strategic Petroleum Reserve deliveries

Two Texas companies will deliver crude oil from Dec. 1 through Jan. 31 to the Strategic Petroleum Reserve, the world’s largest emergency supply of crude oil. Photo via Getty Images

Two companies with ties to the Houston area have been awarded federal contracts totaling nearly $55.8 million to supply about 1 million barrels of crude oil for the nation’s depleted Strategic Petroleum Reserve.

Houston-based Trafigura Trading will provide two-thirds of the oil, and Dallas-based Energy Transfer Crude Marketing will provide the remaining one-third. Energy Transfer, the parent company of Energy Transfer Crude Marketing, operates a 330-acre oil terminal at the Houston Ship Channel.

The U.S. Department of Energy (DOE), which awarded the contracts, said Trafigura and Energy Transfer will deliver the crude oil from Dec. 1 through Jan. 31 to the Strategic Petroleum Reserve’s Bryan Mound storage site near Freeport.

The Strategic Petroleum Reserve, the world’s largest emergency supply of crude oil, can hold up to 714 million barrels of crude oil across 61 underground salt caverns at four sites along the Gulf Coast. The reserve currently contains 410 million barrels of crude oil. During the pandemic, the Biden administration ordered a 180 million-barrel drawdown from the reserve to help combat high gas prices triggered by Russia’s war with Ukraine.

The four strategic reserve sites are connected to 24 Gulf Coast refineries, and another six refineries in Kentucky, Michigan and Ohio.

“Awarding these contracts marks another step in the important process of refilling this national security asset,” U.S. Energy Secretary Chris Wright said.

In March, Wright estimated it would take $20 billion and many years to fill the Strategic Petroleum Reserve to its maximum capacity, according to Reuters

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A View From HETI

A 146-year-old Houston company is the first to land an investment from the Blackstone Energy Transition Partners V fund. Photo via dresserutility.com

Asset manager Blackstone has agreed to buy Houston-based Dresser Utility Solutions from Connecticut private equity firm First Reserve for an undisclosed amount. First Reserve has a major presence in Houston.

The deal represents the first investment from Blackstone Energy Transition Partners V.

“Blackstone’s deep resources and experience in the utility sector make them an ideal partner as we continue to invest in innovation, expand our product portfolio, and deliver value for our customers,” Dresser CEO David Evans said in a news release.

Founded in 1880, Dresser provides metering technology, digital instrumentation and software, pressure and flow controls, and infrastructure repair products for gas and water utilities and industrial customers. The company employs about 850 people worldwide.

“As demands on the energy grid continue to grow, Dresser plays a critical role as a trusted partner to utilities managing essential infrastructure. The company’s products are foundational to the safe and reliable operation of gas and water networks, and its reputation for quality has helped build longstanding customer relationships,” David Foley, global head of Blackstone Energy Transition Partners, and JP Munfa, senior managing director, said in the release.

Blackstone Energy Transition Partners has invested more than $28 billion across the energy transition sector. New York-based Blackstone closed Blackstone Energy Transition Partners Fund IV at $5.6 billion in February 2025. Blackstone Energy Transition Partners Fund III closed in 2020 for $4.4 million, according to Pitchbook.

Other notable energy transition investments from Blackstone funds include Salt Lake City-based Energy Exemplar, French electronics manufacturing company Sediver, Plano-based Westwood Professional Services and others.

Two years ago, Dresser secured a $335 million credit facility from funds managed by asset manager Blue Owl Capital. At the time, Dresser said the money would go toward capital expenses, acquisitions and corporate needs.

This is the second notable investment Blackstone has made in a Houston-based energy company in recent months. In May, Blackstone and energy heavyweight Halliburton made a $1 billion equity investment in Houston power generation startup VoltaGrid, which provides behind-the-meter mobile power generation equipment for data centers, microgrids and industrial customers.

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