DOE Awards 6M Bbl for Bayou Choctaw SPR Solicitation


   
    

    

   OAKHURST, N.J. (DTN) --- The U.S. Department of Energy's Office of Petroleum 
Reserves has awarded contracts for the acquisition of 6 million bbl of 
U.S.-produced crude oil, with the contracts awarded Friday (9/27) for 
deliveries of 1.5 million bbl per month beginning in February 2025 through May 
2025 to the Bayou Choctaw site.

   Regarding the Request for Proposal announced on Sept. 18, DOE said 50 
proposals were submitted to the RFP with contracts awarded that met quality and 
spec requirements, in addition to providing competitive bids.

   To date, DOE has directly purchased over 56 million bbl of oil for the SPR 
at an average price of about $76 bbl. This is nearly $20 bbl lower than the $95 
bbl average sales price for 2022's emergency sales. DOE will continue to 
evaluate options to refill the SPR while securing a good deal for taxpayers, 
taking into account planned exchange returns and market developments.  

   On top of the 140 million bbl of oil secured by working with Congress to 
cancel previously mandated sales, DOE said this brings the total purchased or 
kept in the SPR since 2022 to more than 180 million bbl, exceeding the full 
amount sold following the unprecedented Russian war against Ukraine. DOE also 
previously successfully accelerated approximately 5 million barrels in exchange 
returns initially slated for the summer of 2024 to maximize SPR refill.




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