DOE plans to announce new sales of crude from SPR later in August

The US Department of Energy expects to issue a notice of sale of crude oil from the Strategic Petroleum Reserve later in August, DOE’s Fossil Energy Office said on Aug. 15. The anticipated sale of 14 million bbl will fulfill requirements of Section 5010(a)(1)(B) of the 21st Century Cures Act (Public Law 114-255) and Section 403(a)(1) of the Bipartisan Budget Act of 2015 (Public Law 114-74), FEO said.

The US Department of Energy expects to issue a notice of sale of crude oil from the Strategic Petroleum Reserve later in August, DOE’s Fossil Energy Office said on Aug. 15. The anticipated sale of 14 million bbl will fulfill requirements of Section 5010(a)(1)(B) of the 21st Century Cures Act (Public Law 114-255) and Section 403(a)(1) of the Bipartisan Budget Act of 2015 (Public Law 114-74), FEO said.

It said that under Section 5010 of the 21st Century Cures Act, signed on Jan. 4, 2016, the secretary of energy is directed to draw down and sell a total of 25 million bbl of crude from the SPR over 3 consecutive fiscal years beginning in fiscal 2017. Of this amount, DOE will sell 9 million bbl in fiscal 2018. Revenues from the sale will go to the general fund of the US Department of the Treasury, to carry out the National Institutes of Health’s innovation projects.

Under Section 403 of the Bipartisan Budget Act of 2015, signed on Nov. 2, 2015, the US Energy Secretary is directed to draw down and sell a total of 58 million bbl of crude from the SPR over 8 consecutive fiscal years, starting in 2018. Of this amount, DOE will sell 5 million bbl in fiscal 2018, FEO said.

Any company registered in the SPR’s Crude Oil Sales Offer Program is eligible to participate, it noted. Others may register at the SPR website’s Crude Oil Sales Offer Program, according to FEO.

Contact Nick Snow at nicks@pennwell.com.

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