DOE Announces Release of up to 50 Million Barrels of Crude Oil from the Strategic Petroleum Reserve

Today, following the President’s announcement yesterday to release 50 million barrels of Strategic Petroleum Reserve (SPR) crude oil through a competitive exchange for up to 32 million barrels and a sale for up to 18 million barrels, to satisfy Congressionally mandated requirements in Section 30204 of the Bipartisan Budget Act of 2018 (Public Law 115-123) for fiscal year (FY) 2022, the U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) issued the solicitation for the 32 million barrel exchange. 

The competitive exchange will be conducted with crude oil from all four SPR storage sites (maximum amount from each site listed):

• Approximately 10 million barrels from Big Hill, TX
• Approximately 10 million barrels from Bryan Mound, TX
• Approximately 7 million barrels from West Hackberry, LA
• Approximately 5 million barrels from Bayou Choctaw, LA

Companies interested in receiving crude oil through the competitive exchange must submit bids no later than 10:00 a.m. Central Time, December 6, 2021, and contracts will be awarded to successful offerors no later than December 14, 2021.  Deliveries will take place January through April 2022, with early deliveries accepted in late December.  Exchange crude oil will be returned to the SPR in calendar years 2022, 2023, and 2024.  A separate Notice of Sale for up to 18 million barrels of SPR crude oil will be announced no sooner than December 17, 2021. 

All companies that can meet the requirements of the solicitation may submit their bid.