Happy Monday! Welcome back to another week of ESC’s News Blog!
At this point,
you know how we enjoy writing follow-ups to our Blog! Back in January, February, and March 2024, we
wrote about the Strategic Petroleum Reserve (SPR) having purchased
or have had returned to them approximately 36.3 million barrels of oil. Last month the SPR discontinued requests for
bids and canceled a couple contracts to buy oil due to prices were too high! Well, things have changed! They are resuming
their strategy to refill these American assets now prices are good again.
Did anyone
happen to read the Oil & Gas Journal’s Daily Update Newsletter on May
7, 2024, their article titled, “US resumes SPR refill as crude prices slip
below $80/bbl”? In the article, it
speaks about the U.S. Department of Energy announced last week it is resuming
buying oil to refill the SPR for its Big Hill facility in Texas. The DOE is requesting proposals
for bids to sell them roughly 3.3 million barrels of oil for October delivery,
and the bids are due May 14, 2024.
The previous
solicitations for oil buybacks had the median price of $76.98 per barrel under
the DOE’s Office of Petroleum Reserves’ strategy to pay no more than $79 per barrel. April’s high prices brought their buyback
strategy to a halt, and with them loosening up again they will resume their three-part
strategy to refill the SPR until they have returned to full capacity. If you would like to read more of Oil and
Gas Journal’s article, please click the link: US
resumes SPR refills as crude prices slip below $80/bbl | Oil & Gas Journal
(ogj.com).
If you would
like to read about the SPR’s Sale and Exchange Program, please click the link: SPR Sales and Exchanges | Department of Energy.
If you would
like help in looking into how to transport your product efficiently, safely, and
with less of a carbon footprint or just find out what is underneath your feet
to help with your emission reduction goals, contact us via email in the blog
and check out our ESC's website!
We hope you have a wonderful evening and a productive week!
**Disclaimer: You may be charged a fee to read the Oil
and Gas Journal’s article. **