The Northeast region of the U.S. is particularly vulnerable to gasoline disruptions as a result of hurricanes and other natural events. Hurricane Sandy in 2012 caused widespread issues related to the availability of gasoline.
Creation of an emergency stock of gasoline was authorized by Department of Energy Secretary Moniz on June 20, 2014. Secretary Moniz directed the Office of Petroleum Reserves to establish a one million barrel gasoline component of the Strategic Petroleum Reserve in the Northeast. The intent was to create a buffer large enough to allow commercial companies to compensate for the initial impacts of interruptions in supply, but not so large as to dissuade the companies from maintaining stock levels sufficient to respond to routine disruptions or to recognize that increasing prices are an indicator that more supply is needed. A one million barrel emergency reserve would give Northeast consumers supplemental supplies for a few days in the event of a hurricane or other disruption, until existing distribution infrastructure could return to full operation.
An on-line anonymous open bidding system would be used for emergency sales of product from the Northeast Regional Refined Petroleum Product Reserve.
•Link to Bid System (not yet available)
•Register for Email Alerts for the Gasoline Reserve
DOE Establishes a One Million Barrel Reserve
Immediately after the Secretary’s June 2014 directive, the Energy Department, acting through the Department of Defense, Defense Logistics Agency – Energy (DLA-E), finalized solicitations to acquire storage service contracts in the Northeast, as well as one million barrels of gasoline stocks. Contracts were awarded and, by August 1, 2014, 800,000 barrels of the gasoline will be delivered to the storage facilities, with the remaining 200,000 barrels to be delivered prior to September 1, 2014.
As Americans confront the most active portion of the 2014 hurricane season, the Northeast Regional Refined Petroleum Product Reserve will be ready.