DOE SLATES MOCK SALE OF SPR CRUDE

The Department of Energy has asked U.S. oil companies to participate in a simulated sale of Strategic Petroleum Reserve crude next Oct. 22-Dec. 7. The exercise is intended to give companies experience in obtaining SPR oil in the event of a supply disruption. They are to submit mock bids for crude and a schedule for deliveries, but no crude will be sold or delivered. Robert Gentile, assistant Energy secretary for fossil energy, has written more than 300 letters to companies to invite their

July 16, 1990

The Department of Energy has asked U.S. oil companies to participate in a simulated sale of Strategic Petroleum Reserve crude next Oct. 22-Dec. 7.

The exercise is intended to give companies experience in obtaining SPR oil in the event of a supply disruption. They are to submit mock bids for crude and a schedule for deliveries, but no crude will be sold or delivered.

Robert Gentile, assistant Energy secretary for fossil energy, has written more than 300 letters to companies to invite their participation.

Gentile said "The nation's oil industry should understand fully the mechanisms we will use in distributing emergency crude oil before an emergency occurs. Waiting until we are confronted with an energy interruption could impair the nation's ability to mitigate the disruptive effects of an oil cutoff."

DOE has run several internal tests of its sale process, but only one involved buyers.