U.S. Buys 4.65 Million Barrels from Strategic Petroleum Reserve
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Following the finalization of contracts for the most recent solicitation of crude oil for the Strategic Petroleum Reserve (SPR), the U.S. Department of Energy confirms that more than 40 million barrels have been purchased and delivered or secured for delivery by December 2024.
On top of the 140 million barrels of oil secured by working with Congress to cancel previously-mandated sales, this brings the total purchased or kept in the SPR since 2022 to 180 million barrels.
The DOE has been able to take advantage of windows of market stability to directly purchase a total of 43.25 million barrels of oil for the SPR for an average price of $77. This is nearly $20 per barrel lower than the $95 average sales price for 2022’s emergency sales.
DOE has also successfully accelerated nearly 5.5 million barrels in exchange returns initially slated for the summer of 2024 to maximize SPR refill. DOE will continue to evaluate options to refill the SPR even more with the remaining proceeds from the 2022 emergency sales while securing a good deal for taxpayers, taking into account planned exchange returns and market developments.
DOE’s Office of Petroleum Reserves also announced that contracts have been awarded for the acquisition of 4.65 million barrels of U.S.-produced crude oil for the Strategic Petroleum Reserve (SPR). The contracts today represent a fully subscribed solicitation following the request for proposal (RFP) that was on July 10, 2024.
A total of five companies responded to the RFP, submitting 42 proposals, and the contracts were awarded to two companies that met quality and spec requirements, in addition to providing competitive bids. The crude oil will be delivered to the Bayou Choctaw SPR storage site from October 1, 2024, through December 31, 2024.
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