USA Sells More Oil from Strategic Reserve
The U.S. Department of Energy (DOE) has announced a notice of sale of 45 million barrels of crude oil from the Strategic Petroleum Reserve (SPR).
This notice of sale is part of President Biden’s announcement on March 31 to release one million barrels of crude oil a day for six months to address the global supply disruption caused by Putin’s war on Ukraine and help stabilize volatile energy costs for American families, the DOE noted in a statement posted on its website. Deliveries from this notice of sale will take place from August 16 through September 30, the DOE highlighted.
The DOE also announced that contracts have been awarded for the purchase of crude oil from the SPR announced in a notice of sale on May 24. Combined with 3.3 million barrels of SPR crude oil scheduled for delivery this month from emergency exchanges authorized earlier this year, a total of 17 companies responded to the notice, submitting 124 bids for evaluation, the DOE outlined. Contracts were awarded to the following companies.
- Atlantic Trading & Marketing, Inc. (1.85 million barrels)
- Chevron USA (0.90 million barrels)
- Equinor Marketing & Trading (2.05 million barrels)
- ExxonMobil Oil Corporation (5.15 million barrels)
- Marathon Petroleum Supply and Trading LLC (8.51 million barrels)
- Motiva Enterprises LLC (4.20 million barrels)
- Phillips 66 Company (1.30 million barrels)
- Shell Trading (US) Company (0.700 million barrels)
- Valero Marketing and Supply Company (11.65 million barrels)
On May 24, the DOE announced a notice of sale of up to 40.1 million barrels of crude oil from the SPR. Under this notice of sale, the SPR offered to release up to 39 million barrels of sour crude oil and 1.1 million barrels of sweet crude oil, the DOE highlighted in an organization statement at the time.
On April 30, the DOE announced that contracts had been awarded for 30 million barrels from the SPR that was noticed for sale in April. A total of 16 companies responded to the notice, submitting 126 bids for evaluation, the DOE revealed. Contracts were awarded to the following companies.
- Atlantic Trading & Marketing, Inc. (2.1 million barrels)
- Chevron USA (1.025 million barrels)
- Equinor Marketing & Trading (0.7 million barrels)
- ExxonMobil Oil Corporation (3.6 million barrels)
- Glencore Ltd. (2.6 million barrels)
- Marathon Petroleum Supply and Trading LLC (2.375 million barrels)
- Mercuria (0.5 million barrels)
- Motiva Enterprises LLC (4.05 million barrels)
- Phillips 66 Company (2.5 million barrels)
- Shell Trading (US) Company (2.75 million barrels)
- Unipec America, Inc. (0.95 million barrels)
- Valero Marketing and Supply Company (6.85 million barrels)
A White House fact sheet released on March 31 noted that Americans faced rising prices at the pump because of Putin’s price hike.
“Since Putin accelerated his military build-up around Ukraine, gas prices have increased by nearly a dollar per gallon. Because of Putin’s war of choice, less oil is getting to market, and the reduction in supply is raising prices at the pump for Americans,” the fact sheet stated.
“President Biden is committed to doing everything in his power to help American families who are paying more out of pocket as a result,” the fact sheet added.
The SPR is the world’s largest supply of emergency crude oil, according to the DOE, which administers the federally owned oil stocks stored in underground salt caverns along the Texas and Louisiana coastlines of the Gulf of Mexico. President Gerald Ford established the SPR in 1975 after the Organization of Arab Petroleum Exporting Countries imposed an oil embargo against the U.S., triggering an energy crisis that sent the U.S. economy into a recession, a DOE fact sheet notes.
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