WASHINGTON, D.C. – Today, the U.S. Department of Energy’s (DOE) Office of Fossil Energy (FE) announced a congressionally mandated Notice of Sale of crude oil from the Strategic Petroleum Reserve (SPR).
DOE plans to draw down and sell crude oil from three SPR sites—Bryan Mound and Big Hill in Texas, and West Hackberry in Louisiana. This sale will fulfill requirements for Section 403 of the Bipartisan Budget Act of 2015 (Public Law 114-74) and the Consolidated Appropriations Act of 2018 (Public Law 115-141).
Section 403 of the Bipartisan Budget Act of 2015 directs the Secretary of Energy to draw down and sell 5 million barrels of SPR crude oil in FY 2020. The Consolidated Appropriations Act of 2018 directs the Secretary of Energy to draw down and sell a total of 10 million barrels of SPR crude oil in the years 2020 and 2021. The proceeds from this sale will be deposited into the United States Treasury in FY 2020.
The Notice of Sale announced today includes a price-competitive sale of up to 10 million barrels of SPR crude. The sale will be conducted with crude oil from the following three SPR sites (maximum amount from each site listed):
- Up to 10 million barrels from Bryan Mound
- Up to 5 million barrels from Big Hill
- Up to 5 million barrels from West Hackberry
DOE must receive bids no later than 2:00 p.m. Central Time on August 28, 2019. DOE will award contracts to successful offerors no later than September 5, 2019. Deliveries will take place in October and November of 2019.
Any company registered in the SPR’s Crude Oil Sales Offer Program is eligible to participate in SPR crude oil sales. Other interested companies may register through the SPR website’s Crude Oil Sales Offer Program.