Happy Thursday!
The last two
weeks has been good news for the U.S. Strategic Petroleum Reserves!
Did anyone happen
to see the newsletter from ILTA News Plus, January
4, 2024, they had a teaser for an article titled, “US buys 3 million barrels of
oil for strategic reserve”? The article was
from Reuters, and it speaks of the Strategic Petroleum Reserve (SPR)
making an announcement that 2023 was the biggest buyback sale they’ve had in the
U.S. since establishing the SPR. Last
year the administration made a plan to refill the SPR in a way to benefit the American
People and one of the stipulations is to make a direct purchase of oil for less
than $80 a barrel. In 2023, the SPR bought
about 14 million barrels at an average cost of $75.63 a barrel. In December, the SPR has gone under contract
to buy three million barrels from three companies at an average price of $77.31
a barrel to be delivered to Big Spring, Texas by the end of March 2024. The three companies who are under contract to
provide the oil is Sunoco Partners Marketing & Terminals LP will provide
1.2 million barrels, Macquarie Commodities Trading US LLC and Phillips 66 will provide
900,000 barrels a piece which total three million barrels to refill the SPR. We would like to congratulate the SPR on making
a sound purchase. If you would like to
read more of the Reuters article, please click the link: US buys 3 million barrels of oil for strategic reserve | Reuters.
An
announcement was made by the Department of Energy’s (D0E) Office of
Cybersecurity, Energy Security, and Emergency Response on January 3, 2024, they
made an announcement titled, “U.S. Department of Energy Announces a Solicitations
to Purchase Oil for Strategic Petroleum Reserve Replenishment – New Solicitation
for up to 3 Million Barrels Continues Biden-Harris Administration’s Commitment
to Replenish Reserve at a Good Deal for American Taxpayers, Maintain the SPR’s Operational
Readiness, and Protect the Nation’s Energy Security”? The announcement goes on to speak about the Strategic Petroleum Reserve (SPR) having another request for proposals (RFP) to refill
the SPR with approximately three million barrels to be delivered by the end of April
2024. The RFP is open for submissions
until 11 a.m. C.T. January 10, 2024, and delivery will be to Big Hill storage
facility by the end of April 2024. If you would like to read more of the announcement
from DOE’s Office of Cybersecurity, Energy Security, and Emergency
Response, please click the link: U.S. Department of Energy Announces a Solicitation to Purchase Oil for StrategicPetroleum Reserve Replenishment | Department of Energy.
If you would
like help in looking into how to transport your product and help reduce your
carbon-foot print, contact us via the email in the blog and check out our ESC's website!
We hope you have a wonderful evening!
**Disclaimer: Please see postings for specifics on date and
times for proposals. You may be charged
a fee to read Reuters’s article. **