First Oil Delivery from US Strategic Reserve Completed
The U.S. Department of Energy has completed delivery of the first cargo of crude oil sold as a result of the on-line competitive sale earlier this month of Strategic Petroleum Reserve stock. A total of 30 million barrels were offered as a result of President George W. Bush's September 2, 2005, finding of a "severe energy supply interruption," as defined by the Energy Policy and Conservation Act of 1975, resulting from Hurricane Katrina.
The sale resulted in award of 11 million barrels of crude oil to five companies who submitted favorable bids. The 550,000 barrel cargo of sweet crude oil intended for Marathon Petroleum was delivered from the Bryan Mound, Texas, site through the Jones Creek Tank Farm this week. Transfer of all of the contracted crude oil will continue in batches throughout October.
In addition to the competitive sale of crude oil, the Strategic Petroleum Reserve also approved loans of crude oil immediately after the devastation of Hurricane Katrina was realized, of up to 13.2 million barrels to refiners whose deliveries were interrupted. Over six million barrels of oil have been delivered to date.
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