The US Department of Energy formally announced that it will sell as much as 8 million bbl of sweet crude oil from three Strategic Petroleum Reserve storage sites at competitive prices.
The Jan. 9 notice came about 3 weeks after DOE’s Fossil Energy Office (FEO) said a sale could come early in 2017 after a continuing federal budget resolution including authorization for them become law (OGJ Online, Dec. 15, 2016).
As much as 3 million bbl each will be sold from the Byran Mound and Big Hill sites in Texas, and as much as 2 million bbl more will be sold from the West Hackberry site in Louisiana, FEO said.
Any company registered in the SPR’s Crude Oil Sales Offer Program is eligible to participate, it noted. Companies may register by going to www.spr.doe.gov. Bids must be received no later than Jan. 17 at 2 p.m. CST, and contracts will be awarded to successful bidders by the end of January. Deliveries will be scheduled to take place in March and April, with early deliveries in February accommodated to the maximum extent possible, it said.
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