DOE to resume purchases for SPR in wake of crude oil price plunge

The US Department of Energy plans to take advantage of the recent crude oil price decline and resume filling the Strategic Petroleum Reserve, it announced on Jan. 2.

It said that it issued a solicitation to buy approximately 12 million bbl of crude to replenish supplies which were sold following Hurricanes Katrina and Rita in 2005. Congress overwhelmingly passed a law ordering DOE to suspend SPR purchases early last summer after prices broke the $100/bbl barrier. The ban expired on Dec. 31.

DOE said that it also plans to seek repayments from refiners for emergency oil it released from the SPR following Hurricanes Gustav and Ike in 2008, to deliver deferred royalty-in-kind oil, and to solicit new RIK deliveries this spring. The actions are required under the 2005 Energy Policy Act, it said.

It said that planned acquisitions during 2009 will bring the SPR back to its 727 million bbl storage capacity and provide the United States with approximately 70 days of net import protection.

Contact Nick Snow at nicks@pennwell.com

Related Articles

MARKET WATCH: Crude oil futures rise on Libya, Ukraine concerns

04/10/2014 Crude oil futures prices reached a 5-week high on the New York market Apr. 9 amid continued uncertainty about apparent delays in an anticipated res...

FRA to propose requiring two-member crews on trains carrying crude

04/10/2014 The Federal Railroad Administration (FRA) plans to propose requiring trains transporting crude oil to have at least two crew members, the US Depart...

MARKET WATCH: NYMEX oil price jumps on EIA’s reduced oil production forecast

04/09/2014 The benchmark US crude oil futures price jumped more than $2/bbl on Apr. 8 after the US Energy Information Administration released a report saying ...

Russia falls to last place in SAFE’s latest Oil Security Index

04/08/2014 Russia, which ranked as high as No. 9 in 2005, fell to last place in the most recent quarterly update of the global Oil Security Index (OSI), relea...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected