The United States Department of Energy’s (DOE) Office of Fossil Energy (FE) announced today that DOE would issue a Notice of Sale for the sale of crude oil from the Strategic Petroleum Reserve (SPR) in late August 2017.
The SPR is the world's largest supply of emergency crude oil. The SPR stores its federally owned oil stocks in underground salt caverns at four storage sites in Texas and Louisiana.
FE plans to draw down and sell 14 million barrels of crude oil from the SPR to fulfill the requirements of Section 5010(a)(1)(B) of the 21st Century Cures Act (Public Law 114-255) and Section 403(a)(1) of the Bipartisan Budget Act of 2015 (Public Law 114-74).
Under Section 5010 of the 21st Century Cures Act, signed on January 4, 2016, 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 will sell 9 million barrels in FY 2018. Revenues from the sale will go to the general fund of the United States Department of the Treasury, to carry out the National Institutes of Health’s innovation projects.
Under Section 403 of the Bipartisan Budget Act of 2015, signed on November 2, 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 will sell 5 million barrels in FY 2018.
Any company registered in the SPR’s Crude Oil Sales Offer Program is eligible to participate in SPR crude oil sales. Other interested companies may register through the SPR website’s Crude Oil Sales Offer Program.