Department of Energy (US) Announces Notice of Sale of Crude Oil

In last week on 28th Feb 2020, at the U.S. Department of Energy’s (DOE) Office of Fossil Energy (FE) announced a Notice of Sale of crude oil from the Strategic Petroleum Reserve.

Department of Energy (US) (DOE) plans to draw down and sell crude oil from three Strategic Petroleum Reserve sites—Bryan Mound and Big Hill in Texas, and West Hackberry in Louisiana. This sale will fulfill requirements for Section 404 of the Bipartisan Budget Act of 2015 (Public Law 114-74) in US.

Section 404 of the Bipartisan Budget Act of 2015 authorizes the U.S. Secretary of Energy to draw down and sell up to $2 billion of Strategic Petroleum Reserve crude oil for fiscal years (FY) 2017 through 2020 to carry out the Strategic Petroleum Reserve modernization program. In FY 2020, the Secretary is authorized to sell up to $450 million worth of crude oil from the Strategic Petroleum Reserve to carry out the SPR Life Extension Phase II project, in accordance with the Further Consolidated Appropriations Act, 2020 (Public Law 116-94). The proceeds from this sale will be deposited into the Energy Security and Infrastructure Modernization Fund during FY 2020.

The Notice of Sale announced today includes a price-competitive sale of up to 12 million barrels of SPR crude. The sale will be conducted with crude oil from the following three Strategic Petroleum Reserve sites:

• Up to 6 million barrels from Bryan Mound, Texas
• Up to 3 million barrels from Big Hill, Texas
• Up to 3 million barrels from West Hackberry, Louisiana

DOE must receive bids no later than 2:00 PM Eastern Time on March 10, 2020. U.S. Department of Energy’s will award contracts to successful offerors no later than March 20, 2020. Deliveries will take place in April and May of 2020.

Any company registered in the Strategic Petroleum Reserve’s Crude Oil Sales Offer Program is eligible to participate in Strategic Petroleum Reserve crude oil sales. Other interested companies may register through the Strategic Petroleum Reserve website’s Crude Oil Sales Offer Program.

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(Source: Assorted with energy.gov, 3rd March, 2020)