The US Department of Energy plans to draw down and sell 14 million bbl of sour crude oil from the US Strategic Petroleum Reserve, the DOE’s Fossil Energy Office (FEO) reported on Aug. 22. The crude will be sold from three sites—Bryan Mound and Big Hill in Texas and West Hackberry in Louisiana, FEO said.
The announcement came a week after FEO announced an upcoming sale of SPR crude to fulfill requirements under the 2016 21st Century Cures Act and the 2015 Bipartisan Budget Act (OGJ Online, Aug. 15, 2017). Of the 14 million bbl, 9 million bbl will be sold to comply with the first law and 5 million bbl will be sold to comply with the second, FEO said.
Bids must be received no later than 2 p.m. CDT on Aug. 30, it noted. Contracts for winning bids will be awarded no later than Sept. 13, and deliveries will be take place in October and November.
Any company registered in the SPR’s Crude Oil Sales Offer Program is eligible to participate in sales of crude from the reserve, FEO said. Other interested companies may register through the SPR web site’s Crude Oil Sales Offer Program, it said.
The White House proposed selling nearly half of the SPR’s crude over 10 years beginning in fiscal 2018 as part of the proposed federal budget it released in May (OGJ Online, May 23, 2017).
Contact Nick Snow at [email protected].
