DOE to sell crude oil from Strategic Petroleum Reserve under Congressional mandate
The United States Department of Energy (DOE) Office of Fossil Energy has issued a notice of sale for crude oil in the Strategic Petroleum Reserve (SPR) at the demand of Congress, opening the option to any company registered in the Crude Oil Sales Offer program.
Crude will be drawn from three SPR sites around the country — two in Texas and one in Louisiana. A total of 5 million barrels of SPR crude oil must be sold in 2020, as a result of the Bipartisan Budget Act of 2015. Additionally, the Consolidated Appropriations Act of 2018 requires 10 million barrels to be sold throughout 2020 and 2021. All proceeds will benefit the U.S. Treasury.
The notice of sale is price-competitive. Up to 10 million barrels of those sold will come from Bryan Mound, Texas, up to 5 million from Big Hill, Texas and 5 million from West Hackberry, La.
All bids must be received by Aug. 27, 2019. Contracts will then be awarded no later than Sept. 5, 2019, to be followed by deliveries in October and November.
