An energy worker advocacy group is calling on the Trump administration to refill the Strategic Petroleum Reserve now that oil prices have fallen to four-year lows.
Former President Joe Biden drained the reserve of more than 40% of its capacity when gas prices reached record highs, averaging more than $5 a gallon across the U.S. in June 2022.
With the price of a barrel of crude oil at about $61, Power The Future says it’s the right time to restock the reserve.
“This drop in oil prices is not only potential good news for Americans at the pump, it also provides a window to strengthen our national energy security,” Daniel Turner, founder and executive director of Power The Future, said Monday.
The Strategic Petroleum Reserve was created in 1975 after member countries of the Organization of Arab Petroleum Exporting Countries placed an embargo on oil production and distribution, leading to oil shortages and higher costs. The stock pile of oil in the reserve is meant to protect the U.S. from similar supply disruptions.
“Joe Biden left America weaker by not refilling the SPR, but today’s prices provide an opportunity to fix yet another one of his failure,” Turner said. “The SPR can now be refilled while giving taxpayers a break and it can be purchased tariff-free because we’ll use all American-made energy.”
Dan McCaleb is the executive editor of The Center Square. He welcomes your comments. Contact Dan at [email protected].
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“The refining industry wants heavy oil. We are actually in a shortage of heavy oil globally right now, and you can see that in the prices”
Once priced at a steep discount to its lighter, sweeter counterparts, Canadian oil has earned growing admiration—and market share—among new customers in Asia.
Canada’s oil exports are primarily “heavy” oil from the Alberta oil sands, compared to oil from more conventional “light” plays like the Permian Basin in the U.S.
One way to think of it is that heavy oil is thick and does not flow easily, while light oil is thin and flows freely, like fudge compared to apple juice.
“The refining industry wants heavy oil. We are actually in a shortage of heavy oil globally right now, and you can see that in the prices,” said Susan Bell, senior vice-president of downstream research with Rystad Energy.
A narrowing price gap
Alberta’s heavy oil producers generally receive a lower price than light oil producers, partly a result of different crude quality but mainly because of the cost of transportation, according to S&P Global.
The “differential” between Western Canadian Select (WCS) and West Texas Intermediate (WTI) blew out to nearly US$50 per barrel in 2018 because of pipeline bottlenecks, forcing Alberta to step in and cut production.
So far this year, the differential has narrowed to as little as US$10 per barrel, averaging around US$12, according to GLJ Petroleum Consultants.
“The differential between WCS and WTI is the narrowest I’ve seen in three decades working in the industry,” Bell said.
Trans Mountain Expansion opens the door to Asia
Oil tanker docked at the Westridge Marine Terminal in Burnaby, B.C. Photo courtesy Trans Mountain Corporation
The price boost is thanks to the Trans Mountain expansion, which opened a new gateway to Asia in May 2024 by nearly tripling the pipeline’s capacity.
This helps fill the supply void left by other major regions that export heavy oil – Venezuela and Mexico – where production is declining or unsteady.
Canadian oil exports outside the United States reached a record 525,000 barrels per day in July 2025, the latest month of data available from the Canada Energy Regulator.
China leads Asian buyers since the expansion went into service, along with Japan, Brunei and Singapore, Bloomberg reports.
Asian refineries see opportunity in heavy oil
“What we are seeing now is a lot of refineries in the Asian market have been exposed long enough to WCS and now are comfortable with taking on regular shipments,” Bell said.
Kevin Birn, chief analyst for Canadian oil markets at S&P Global, said rising demand for heavier crude in Asia comes from refineries expanding capacity to process it and capture more value from lower-cost feedstocks.
“They’ve invested in capital improvements on the front end to convert heavier oils into more valuable refined products,” said Birn, who also heads S&P’s Center of Emissions Excellence.
Refiners in the U.S. Gulf Coast and Midwest made similar investments over the past 40 years to capitalize on supply from Latin America and the oil sands, he said.
While oil sands output has grown, supplies from Latin America have declined.
Mexico’s state oil company, Pemex, reports it produced roughly 1.6 million barrels per day in the second quarter of 2025, a steep drop from 2.3 million in 2015 and 2.6 million in 2010.
Meanwhile, Venezuela’s oil production, which was nearly 2.9 million barrels per day in 2010, was just 965,000 barrels per day this September, according to OPEC.
The case for more Canadian pipelines
Worker at an oil sands SAGD processing facility in northern Alberta. Photo courtesy Strathcona Resources
“The growth in heavy demand, and decline of other sources of heavy supply has contributed to a tighter market for heavy oil and narrower spreads,” Birn said.
Even the International Energy Agency, known for its bearish projections of future oil demand, sees rising global use of extra-heavy oil through 2050.
The chief impediments to Canada building new pipelines to meet the demand are political rather than market-based, said both Bell and Birn.
“There is absolutely a business case for a second pipeline to tidewater,” Bell said.
“The challenge is other hurdles limiting the growth in the industry, including legislation such as the tanker ban or the oil and gas emissions cap.”
A strategic choice for Canada
Because Alberta’s oil sands will continue a steady, reliable and low-cost supply of heavy oil into the future, Birn said policymakers and Canadians have options.
“Canada needs to ask itself whether to continue to expand pipeline capacity south to the United States or to access global markets itself, which would bring more competition for its products.”
‘We are excited to bring this made-in-Canada innovation to the world’
To the naked eye, it looks about as exciting as baking soda or table salt.
But to the scientists in the University of Calgary chemistry lab who have spent more than a decade working on it, this white powder is nothing short of amazing.
That’s because the material they invented is garnering global attention as a new solution to help address climate change.
Known as Calgary Framework-20 (CALF-20 for short), it has “an exceptional capacity to absorb carbon dioxide” and was recognized in connection with the 2025 Nobel Prize in Chemistry.
A jar of CALF-20, a metal-organic framework (MOF) used in carbon capture. Photo courtesy UCalgary
“It’s basically a molecular sponge that can adsorb CO2 very efficiently,” said Dr. George Shimizu, a UCalgary chemistry professor who leads the research group that first developed CALF-20 in 2013.
The team has been refining its effectiveness ever since.
“CALF-20 is a very exciting compound to work on because it has been a great example of translating basic science into something that works to solve a problem in the real world,” Shimizu said.
Advancing CCS
Carbon capture and storage (CCS) is not a new science in Alberta. Since 2015, operating projects in the province have removed 15 million tonnes of CO2 that would have otherwise been emitted to the atmosphere.
Alberta has nearly 60 proposed facilities for new CCS networks including the Pathways oil sands project, according to the Regina-based International CCS Knowledge Centre.
This year’s Nobel Prize in Chemistry went to three of Shimizu’s colleagues in Japan, Australia and the United States, for developing the earliest versions of materials like CALF-20 between 1989 and 2003.
Custom-built molecules
CALF-20 is in a class called metal-organic frameworks (MOFs) — custom-built molecules that are particularly good at capturing and storing specific substances.
MOFs are leading to new technologies for harvesting water from air in the desert, storing toxic gases, and capturing CO2 from industrial exhaust or directly from the atmosphere.
CALF-20 is one of the few MOF compounds that has advanced to commercial use.
“There has been so much discussion about all the possible uses of MOFs, but there has been a lot of hype versus reality, and CALF-20 is the first to be proven stable and effective enough to be used at an industrial scale,” Shimizu said.
It has been licensed to companies capturing carbon across a range of industries, with the raw material now being produced by the tonne by chemical giant BASF.
CO2 pipeline at the Quest CCS project near Edmonton, Alta. Photo courtesy Shell Canada
Carbon capture filter gigafactory
Svante Inc. has demonstrated its CALF-20-based carbon capture system at a cement plant in British Columbia.
The company recently opened a “gigafactory” in Burnaby equipped to manufacture enough carbon capture and removal filters for up to 10 million tonnes of CO2 annually, equivalent to the emissions of more than 2.3 million cars.
The filters are designed to trap CO2 directly from industrial emissions and the atmosphere, the company says.
Svante chief operating officer Richard Laliberté called the Nobel committee’s recognition “a profound validation” for the entire field of carbon capture and removal.
CALF-20 expansion
Meanwhile, one of Shimizu’s former PhD students helped launch a spinoff company, Existent Sorbents, to further expand the applications of CALF-20.
Existent is working with oil sands producers, a major steel factory and a U.S.-based firm capturing emissions from other point sources, said CEO Adrien Côté.
“The first users of CALF-20 are leaders who took the risk of introducing new technology to industries that are shrewd about their top and bottom lines,” Côté said.
“It has been a long journey, but we are at the point where CALF-20 has proven to be resilient and able to survive in harsh real-world conditions, and we are excited to bring this made-in-Canada innovation to the world.”
