The US Department of Energy (DOE) is seeking offers to sell crude oil to replenish the Strategic Petroleum Reserve (SPR).
The Office of Petroleum Reserve will post monthly solicitations to purchase the oil through at least May 2024, beginning with a solicitation for up to 6 million bbl of oil for delivery in December 2023 and January 2024. Each delivery will be received by the Big Hill storage site in southeastern Texas.
Bids for the first solicitation for the purchase of up to 3 million bbl of crude oil, for December receipt, are due no later than 10:00 a.m. Central Time on Oct. 24, 2023. Bids for the second solicitation for the purchase of up to 3 million bbl of crude oil, for January receipt, are due no later than 10:00 a.m. Central Time on Nov. 1, 2023.
DOE said it has already purchased 4.8 million bbl for SPR replenishment for an average less than $73/bbl.
The administration’s ongoing three-part SPR replenishment strategy includes direct purchases with revenues from emergency sales; exchange returns that include a premium to volume delivered; and securing legislative solutions that avoid unnecessary sales unrelated to supply disruptions. DOE said it has already secured cancellation of 140 million bbl in congressionally mandated sales scheduled for fiscal years 2024-27, marking progress toward replenishment.