8/14/2023 0 Comments American oilNew Solicitation for Additional 3 Million Barrels of Crude Oil to Refill the SPR This cancellation has led to significant progress toward replenishment. DOE has already secured cancellation of 140 million barrels in congressionally mandated sales scheduled for Fiscal Years 2024 through 2027. The Administration’s three-part replenishment strategy includes: (1) Direct purchases with revenues from emergency sales (2) Exchange returns that include a premium to volume delivered and (3) Securing legislative solutions that avoid unnecessary sales unrelated to supply disruptions. The crude oil will be delivered to the Big Hill SPR storage site from August 1, 2023, to August 31, 2023. These 3 million barrels are being purchased for an average price of about $73 per barrel, lower than the average of about $95 per barrel that SPR crude was sold for in 2022, securing a good deal for taxpayers. This purchase has been fully subscribed, and the contracts were awarded to five companies. Analysis from the Department of the Treasury indicates that SPR releases last year, along with coordinated releases from international partners, reduced gasoline prices by up to roughly 40 cents per gallon compared to what they would have been absent these drawdowns.Ī total of 10 companies responded to the Request for Proposal submitting 30 proposals. Today’s announcement advances the President’s replenishment strategy following his historic release from the SPR to address the significant global supply disruption caused by Putin’s war on Ukraine. Furthering the Biden-Harris Administration’s three-part replenishment plan, DOE also announced a new Notice of Solicitation to purchase approximately 3.1 million additional barrels of crude oil to the Big Hill SPR site this September. These contracts follow the Request for Proposal that was announced on May 15, 2023. produced crude oil for the Strategic Petroleum Reserve (SPR). Department of Energy’s (DOE) Office of Petroleum Reserves announced that contracts have been awarded for the acquisition of 3 million barrels of U.S.
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