Following President Biden’s Decisive Action in November to Address Supply Gap, DOE Announces 18 Million Barrels of Crude Oil for Sale on December 17 and Approves First Exchange
WASHINGTON, D.C. — The U.S. Department of Energy (DOE) today announced it will issue a Notice of Sale for 18 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) to address market disruptions. Following President Biden’s action announced in November, DOE is implementing the President’s directive and has approved the first exchange of 4.8 million barrels from the SPR. DOE will continue to accept bids from interested parties for the additional barrels authorized for exchange. As the global economy recovers from the pandemic, oil supply has failed to increase at a pace necessary to meet demand. While oil prices have fallen 10% on average over the last month and prices at the pump have started to drop, the Administration is continuing to take action to help address the supply-demand gap in the market and lower energy prices for Americans.
“Exchanges and sales from the Strategic Petroleum Reserve are important tools we are using to address oil supply disruptions as the world recovers from a once-in-a-century pandemic,” said Secretary Jennifer M. Granholm. “The President rightly believes Americans deserve relief now and has authorized the use of the SPR to respond to market imbalances and reduce costs for consumers.”
DOE will issue the Notice of Sale for 18 million barrels from the SPR on December 17. DOE reviewed and approved the first exchange of 4.8 million barrels for release to ExxonMobil. Delivery will be conducted from the Bryan Mound, West Hackberry, and Bayou Choctaw SPR storage sites.
The combined exchange-and-sale approach allows for up to 32 million barrels to be released through exchanges. As DOE moves forward with the sale, exchange requests will continue to be accepted from interested parties and approved as appropriate to address supply disruptions.
Any company registered in the SPR’s Crude Oil Sales Offer Program is eligible to participate in the sale. Other interested companies may register through the SPR website’s Crude Oil Sales Offer Program. Any company interested in an exchange should contact Thomas McGarry at firstname.lastname@example.org.