Today, the U.S. Department of Energy’s (DOE) Office of Fossil Energy announced that contracts have been awarded from the recent Congressionally-mandated Strategic Petroleum Reserve (SPR) crude oil sale.
On August 21, 2019, DOE issued a Congressionally-mandated Notice of Sale for a price-competitive sale of up to 10 million barrels of SPR crude oil. A total of nine companies responded to the Notice of Sale, submitting 73 bids for evaluation. Contracts were awarded to the following four companies:
- Marathon Petroleum Corporation;
- Motiva Enterprises LLC;
- Phillips 66 Company; and
- Shell Trading (US) Company.
The Congressionally-mandated sale fulfills 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 fiscal year (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 FYs 2020 and 2021. The proceeds from this sale will be deposited into the U.S. Treasury in FY 2020.
The awarded contracts represent a total sale of 9.875 million barrels of crude oil. Of this amount, 1.1 million barrels will be sold from the SPR’s Bryan Mound site, 3.85 million barrels from the Big Hill site, and 4.925 million barrels from the West Hackberry site. Deliveries will take place in October and November of 2019.