Today, the Department of Energy’s (DOE) Office of Fossil Energy announced contracts have been awarded from the recent congressionally-mandated Fiscal Year (FY) 2018 sale of Strategic Petroleum Reserve (SPR) crude oil. DOE issued a Notice of Sale for a price-competitive sale of up to 14 million barrels of sour crude oil from the SPR on August 22, 2017.
Under Section 5010 of the 21st Century Cures Act, the Secretary of Energy is directed to draw down and sell a total of 25 million barrels of crude oil from the SPR, over three consecutive fiscal years (FY), beginning in FY 2017. Of this amount, DOE sold 9 million barrels as required for FY 2018. Under Section 403 of the Bipartisan Budget Act of 2015, the Secretary of Energy is directed to draw down and sell a total of 58 million barrels of crude oil from the SPR, over eight consecutive FYs, commencing in FY 2018. Of this amount, DOE sold 5 million barrels as required for FY 2018.
Eighteen companies responded to the August 22nd Notice of Sale, submitting 102 bids for evaluation, with contracts awarded to the following companies:
- BP Oil Supply
- Exxon Mobil Corporation
- Macquarie Commodities Trading U.S. LLC
- Phillips 66 Company
- Shell Trading (U.S.) Company
- Valero Marketing and Supply Company
The awarded contracts represent a total sale of 14 million barrels of crude oil. Of this amount, 6 million barrels will be sold from the SPR’s Bryan Mound site, 2.9 million barrels from the Big Hill site, and 5.1 million barrels from the West Hackberry site.Deliveries will be scheduled to take place in October and November.