DOE to sell up to 12 million barrels of crude oil from Strategic Petroleum Reserve
The U.S. Department of Energy (DOE) Office of Fossil Energy intends to sell off as much as 12 million barrels of crude oil from the Strategic Petroleum Reserve (SPR), drawing from three sites in Texas and Louisiana.
The sale will pull from Bryan Mound and Big Hill, Texas, as well as West Hackberry, Louisiana. Up to 6 million barrels from Bryan Mound, up to 3 million barrels from Big Hill, and up to 3 million barrels from West Hackberry. The sale will be price-competitive, with bids to be finalized by 2:00 p.m. on March 10. Successful offerors will be awarded no later than March 20, 2020, with deliveries to be made in April and May this year.
Under Section 404 of the Bipartisan Budget Act of 2015, the U.S. Secretary of Energy is authorized to draw down and sell up to $2 billion of SPR crude oil for fiscal years 2017 through 2020. This is part of the SPR modernization program. This year, the secretary can sell up to $450 million worth of crude oil from the SPR to carry out the SPR Life Extension Phase II project, the proceeds of which will be deposited into the Energy Security and Infrastructure Modernization Fund.
The sale will be available to any company registered in the SPR’s Crude Oil Sales Offer Program.
