The U.S. Department of Energy’s (DOE) Office of Fossil Energy announced today that contracts have been awarded from the recent Strategic Petroleum Reserve (SPR) crude oil sale.
On August 20, 2018, DOE issued a Notice of Sale for a price-competitive sale of 11 million barrels of SPR crude oil. Eleven companies responded to the Notice of Sale, submitting 102 bids for evaluation, with contracts awarded to the following companies:
- ExxonMobil Oil Corporation
- Marathon Petroleum Company
- Motiva Enterprises LLC
- Phillips 66 Company
- Shell Trading (U.S.) Company
- Valero Marketing and Supply Company
Section 5010 of the 21st Century Cures Act directs the Secretary of Energy to draw down and sell a total of 25 million barrels of crude oil from the SPR, over 3 consecutive fiscal years (FY), beginning in FY 2017. Of this amount, DOE sold 6 million barrels, as required for FY 2019, which begins October 1, 2018.
Additionally, Section 403 of the Bipartisan Budget Act of 2015 directs the Secretary of Energy to draw down and sell a total of 58 million barrels of crude oil from the SPR, over 8 consecutive FYs, commencing in FY 2018. Of this amount, DOE sold 5 million barrels, as required for FY 2019.
The awarded contracts represent a total sale of 11 million barrels of crude oil. Of this amount, 2.35 million barrels will be sold from the SPR’s Bryan Mound site, 4.15 million barrels from the Big Hill site, and 4.5 million barrels from the West Hackberry site. The SPR will schedule deliveries to take place in October and November 2018.