The Department of Energy’s (DOE) Office of Fossil Energy today announced contracts have been awarded from the recent sale of Strategic Petroleum Reserve (SPR) crude oil.
A Notice of Sale for a price-competitive sale of up to 10 million barrels of sour crude oil was issued by DOE on February 21, 2017. A total of 17 companies responded to the Notice of Sale, submitting 129 bids for evaluation, with contracts awarded to the following companies:
- Atlantic Trading and Marketing, Inc.
- BP Oil Supply
- Marathon Petroleum Company
- PetroChina International (America), Inc.
- Phillips 66
- Shell Trading (U.S.) Company
- Valero Marketing and Supply Company
The awarded contracts represent a total sale of 10 million barrels of crude oil. Of this amount, 3 million barrels will be sold from the SPR’s Bryan Mound site, 2.1 million barrels from the Big Hill site, and 4.9 million barrels from the West Hackberry site. Deliveries will be scheduled to take place in May and June, with early deliveries in April accommodated to the maximum extent possible.
Under Section 5010 of the 21st Century Cures Act (Public Law 114-255), signed on December 13, 2016, the Secretary of Energy is directed to drawdown and sell 25 million barrels of SPR crude oil over three consecutive years, commencing with 10 million barrels this fiscal year.
The revenue from this sale will be deposited into the General Fund of the United States Treasury.