US SPR crude delivered to California for first time amid global supply disruptions
A cargo of crude oil from the US Strategic Petroleum Reserve (SPR) was delivered to California this month for the first time on record, according to vessel-tracking data from Kpler, underscoring major shifts in crude trade flows caused by ongoing Middle East supply disruptions.
The movement reflects tightening crude availability tied to continuing instability surrounding the Strait of Hormuz and rising competition for alternative barrels from Asian buyers. California, once a major oil-producing state, has become increasingly dependent on imported crude supplies in recent years.
Kpler data showed about 460,000 bbl of Bayou Choctaw Sweet crude from the SPR moving to Chevron’s Richmond refinery in Northern California, while an additional 50,000 bbl was delivered to the company’s El Segundo refinery near Los Angeles.
The crude was initially loaded aboard the tanker Red Moon in Louisiana before being discharged at Panama’s Atlantic Terminal. The barrels subsequently moved through the trans-Panama pipeline system to the Pacific side, where they were co-loaded with Guyanese crude aboard the VLCC Pascagoula Voyager for shipment to the US West Coast, according to Kpler shipping data.
The SPR crude ultimately was transferred onto smaller vessels for final delivery to Chevron's California refineries.
Chevron said it has been moving crude oil and gasoline blendstocks under Jones Act-qualified tonnage and through waiver mechanisms intended to support fuel supply into California during what the company described as a period of significant energy stress.