USA Sells 10+ Million Barrels of SPR Oil
The U.S. Department of Energy’s (DOE) Office of Fossil Energy has announced that contracts have been awarded from a recent Congressionally directed Strategic Petroleum Reserve (SPR) crude oil sale.
The DOE said it had awarded contracts to seven entities, comprising Glencore Ltd., Marathon Petroleum Supply and Trading LLC, Motiva Enterprises LLC, Phillips 66 Company, Shell Trading (US) Company, Valero Marketing and Supply Company, and the Government of Australia. The awarded contracts represent a total sale of 10.1 million barrels of crude oil, the DOE noted, adding that, of this amount, 4.1 million barrels will be sold from the Bryan Mound site, 3.3 million barrels from the West Hackberry site, and 2.7 million barrels from the Big Hill site.
The SPR will schedule deliveries to take place in April and May this year, with early deliveries available in March 2021, the DOE revealed. A total of ten companies responded to the notice of sale, which was issued on February 11, submitting 60 bids for evaluation.
The Congressionally directed sale fulfills requirements of Section 403(a)(4) of the Bipartisan Budget Act of 2015 and the Consolidated Appropriations Act of 2018, the DOE outlined. Proceeds of the sale will be deposited in the U.S. Treasury by the end of Fiscal Year 2021.
The SPR is the world’s largest supply of emergency crude oil and was established primarily to reduce the impact of disruptions in supplies of petroleum products and to carry out obligations of the United States under the international energy program, according to the DOE’s website. The federally owned oil stocks are stored in underground salt caverns at four sites - Bryan Mound, Big Hill, West Hackberry, and Bayou Choctaw - along the coastline of the Gulf of Mexico. The SPR is said to have an authorized storage capacity of 714 million barrels.
To contact the author, email email@example.com
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.