DOE Secures 3.4 Million Barrels of Oil for Strategic Petroleum Reserve
The US Department of Energy has awarded contracts for the acquisition of over 3.4 million barrels of crude oil for the Strategic Petroleum Reserve (SPR).
This purchase, scheduled for delivery from January to March 2025 to the Bryan Mound site, follows a Request for Proposal announced in August 2024. It marks the second solicitation for this site, which has undergone significant construction to ensure its long-term viability.
Since 2022, the DOE has directly purchased more than 50 million barrels of oil at an average price of $76 per barrel, significantly lower than the $95 average sales price during the 2022 emergency sales. This move, combined with the cancellation of previously mandated sales and accelerated exchange returns, has resulted in securing over 180 million barrels for the SPR.
“On top of the 140 million barrels of oil secured by working with Congress to cancel previously mandated sales, this brings the total purchased or kept in the SPR since 2022 to more than 180 million barrels, exceeding the full amount sold following the unprecedented Russian war against Ukraine,” the department wrote a statement. “DOE has also successfully accelerated approximately 5 million barrels in exchange returns initially slated for the summer of 2024 to maximize SPR refill.”
The latest purchase for the Bryan Mound site attracted 18 valid proposals, with contracts awarded based on quality requirements and competitive bids.
The DOE continues to implement a three-part replenishment strategy, focusing on direct purchases, exchange returns with premiums, and legislative solutions to avoid unnecessary sales.
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