The U.S. Department of Energy’s (DOE) Office of Fossil Energy (FE) announced Friday a Notice of Sale of crude oil from the Strategic Petroleum Reserve (SPR).
DOE intends to sell up to nine million barrels of crude oil from the SPR. This notice of sale is to fulfill requirements for Section 404 of the Bipartisan Budget Act of 2015, part of a notice of intent first announced Jan. 14 regarding the timing of fiscal year 2021 SPR crude oil sales.
The Notice of Sale includes a price-competitive sale of up to nine million barrels of SPR sour crude oil. The sale will be conducted from the following SPR sites:
- Up to 3 million barrels from West Hackberry
- Up to 3 million barrels from Bryan Mound
- Up to 3 million barrels from Big Hill
DOE must receive bids no later than 10 a.m. CDT on Tuesday, April 27, 2021, and will award contracts to successful offerors no later than May 6, 2021. Deliveries will take place in June 2021, with early deliveries available in May 2021.
The SPR is the world's largest supply of emergency crude oil. The federally owned oil stocks are stored in underground salt caverns at four storage sites in Texas and Louisiana. The SPR has a long history of protecting the economy and U.S. livelihoods in times of emergency oil shortages created by hurricanes and geopolitical events. The SPR also protects Americans in times of oil surplus, such as those caused by Covid-19-related changes in demand.
Any company registered in the SPR’s Crude Oil Sales Offer Program is eligible to participate in this and other SPR crude oil sales. Other interested companies may register through the SPR website’s Crude Oil Sales Offer Program.
