The U.S. Department of Energy (DOE) has launched a new call for bids to purchase up to 3 million barrels of oil , intended to replenish the country’s Strategic Petroleum Reserve (SPR) at the Bryan Mound site in Texas. This purchase is scheduled for April and May 2025, with the aim of strengthening national reserves and doing so on advantageous terms for American taxpayers.
How does the purchase of 3 million barrels benefit the country?
According to DOE, this call is part of an ongoing strategy that has already secured more than 55 million barrels through direct purchases , taking advantage of favorable market prices. DOE currently maintains a target price of $79 per barrel or less, significantly lower than the average price of $95 per barrel in 2022 emergency sales. The Administration is committed to replenishing the SPR while maintaining a focus on fiscal benefits and national energy security .
Since the start of the procurement efforts, DOE has been able to secure over 190 million barrels for the SPR , including canceling 140 million barrels of congressionally mandated sales and purchasing crude oil outright at an average of $76 per barrel. This is nearly $20 less per barrel compared to emergency sales in 2022, and is intended to ensure that citizens get the best deal possible.
Strengthening energy security
This new crude oil acquisition is part of a three-part replenishment strategy: direct purchases, crude exchange returns at an additional premium, and legislative solutions to avoid unnecessary sales. In addition, DOE continues to evaluate other opportunities to replenish the SPR at times when prices are convenient, following market trends and planned returns.
DOE notes that the Strategic Petroleum Reserve remains the largest emergency reserve of crude oil in the world, stored in vast underground caverns in Texas and Louisiana. Through maintenance programs such as Life Extension 2, DOE ensures the reserve’s operational capacity, which acts as a critical resource for the country’s economic stability in times of crisis or energy shortages.
Bids to participate in this call must be submitted before November 6, 2024 , and delivery of the purchased barrels will be between April and May 2025 at the Bryan Mound site.
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Source: U.S. Department of Energy
Photo: Shutterstock
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