DOE Secures 200 Million Barrels for Strategic Petroleum Reserve
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The U.S. Department of Energy said 200 million barrels of crude oil have been delivered, contracted at a good deal for taxpayers, an average price of $74.75. following the closure of the most recent solicitation to acquire 2.4 million barrels of crude oil for the Strategic Petroleum Reserve (SPR).
To date, DOE has directly purchased 59 million barrels of oil for the SPR at an average price of under $76 per barrel. This is about $20 per barrel lower than the $95 average sales price for 2022’s emergency sales. In addition, DOE secured 140 million barrels by working with Congress to cancel mandated sales between FY24 and FY26, at approximately $74 a barrel. Together, this brings the total oil purchased or retained in the Strategic Petroleum Reserve (SPR) since 2022 to nearly 200 million barrels.
All $16.95 billion in emergency revenue made from the 2022 sale was used to secure these barrels, except for the $2.05 billion that was rescinded by Congress for deficit offset. Additionally, DOE accelerated approximately 5 million barrels in exchange returns, to further support the SPR refill and ensure all available windows for efficient replenishment were taken advantage of — helping to increase volumes in preparation for future emergency needs for replenishment.
The contracts awarded on November 7, 2024, are for deliveries totaling 2.4 million barrels beginning in April 2025 through May 2025 to the Bryan Mound site following the request for proposal (RFP) on October 28, 2024.
For the 2.4 million barrels of oil purchased for the Bryan Mound site, 18 proposals were submitted to the RFP. DOE awarded contracts to the most competitive bids that met quality and specification requirements. The crude oil will be delivered to the Bryan Mound SPR storage site from April 1, 2025, through May 31, 2025.
The federally owned oil stocks are stored in underground salt caverns at four sites in Texas and Louisiana. Through scheduled maintenance periods and the Life Extension 2 program, DOE continues to prioritize the operational integrity of the SPR to ensure that it can continue to meet its mission as a critical energy security asset. The SPR has a long history of protecting the economy and American livelihoods in times of emergency oil shortages.
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