U.S. Department of Energy Announces Contract Awards for Sale of Crude Oil from the Strategic Petroleum Reserve

Washington, D.C. – The U.S. Department of Energy’s (DOE) Office of Fossil Energy announced today that contracts have been awarded from the recent Congressionally-directed Strategic Petroleum Reserve (SPR) crude oil sale.

On February 11, 2021, DOE issued a Notice of Sale for a price-competitive sale of 10.1 million barrels of SPR crude oil.  A total of 10 companies responded to the Notice of Sale, submitting 60 bids for evaluation.  DOE awarded contracts to seven companies – Glencore Ltd., Marathon Petroleum Supply and Trading LLC, Motiva Enterprises LLC, Phillips 66 Company, Shell Trading (US) Company, Valero Marketing and Supply Company, and the Government of Australia. 

The Congressionally-directed sale fulfills requirements of Section 403(a)(4) of the Bipartisan Budget Act of 2015 and the Consolidated Appropriations Act of 2018.  The proceeds of the sale will be deposited in the U.S. Treasury by the end of Fiscal Year 2021.

The awarded contracts represent a total sale of 10.1 million barrels of crude oil. Of this amount, 4,100,000 barrels will be sold from the Bryan Mound site (near Freeport, TX), 3,300,000 barrels from the West Hackberry site (near Hackberry, LA), and 2,700,000 barrels from the Big Hill site (near Winnie, TX).  The SPR will schedule deliveries to take place in April and May of 2021, with early deliveries available in March 2021.

Source: U.S. Department of Energy Announces Contract Awards for Sale of Crude Oil from the Strategic Petroleum Reserve

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