Three Strategic Petroleum Reserve sites to be crude oil source

Published on March 05, 2019 by Douglas Clark

The Department of Energy’s (DOE) Office of Fossil Energy (FE) has announced three Strategic Petroleum Reserve (SPR) sites will serve as sources for crude oil sales.

Bryan Mound and Big Hill in Texas, and West Hackberry in Louisiana would be involved in the Notice of Sale, which fulfills requirements for Section 404 of the Bipartisan Budget Act of 2015 (Public Law 114-74).

By law the Secretary of Energy can draw down and sell up to $2 billion of SPR crude oil, for fiscal years (FYs) 2017 through 2020, to carry out an SPR modernization program. In FY 2019, the secretary is authorized to sell up to $300 million worth of crude oil from the SPR to carry out the SPR Life Extension Phase II project in accordance with the Energy and Water, Legislative Branch, and Military Construction and Veterans Affairs Appropriations Act 2019 (Public Law 115-244).

The sale is comprised of up to 3 million barrels from Bryan Mound, up to 1.5 million barrels from Big Hill, and up to 1.5 million barrels from West Hackberry.

Any company registered in the SPR’s Crude Oil Sales Offer Program is eligible to participate in SPR crude oil sales. Interested companies may register through the SPR website’s Crude Oil Sales Offer Program.