Monday, August 26, 2024

DOE has agreed to purchase almost 2.5 million barrels to refill Bryan Mound for delivery starting in January 2025.

Happy Monday and welcome back to another week of ESC News Blog!   We hope you had a fun and relaxing weekend! 

At this point, you know how we enjoy writing follow-ups for our Blog, and we did promise to keep you informed in our last SPR blog!  We wrote about the Strategic Petroleum Reserve (SPR) having purchased or have had returned to them more than 50 million barrels of oil, and they have lined up purchasing agreements for another approximately 9 million barrels to be delivered this fall to Big Hill SPR in Texas and lined up 4.65 million barrels for Bayou Choctaw for delivery by the end of the year. 

Did anyone happen to read the DOE’s CESER Updates Newsletter for the Strategic Petroleum Reserve on August 23, 2024, their update included, “The New Purchase of close to 2.5 Million Barrels Showcase the Biden-Harris Administration’s Continued Commitment to Replenish the SPR at a Good Price, Maintain the SPR’s Operational Readiness, and Protect the Nation’s Energy Security”?  In the DOE’s updates, the Office of Petroleum Reserves had announced the recipient who was given a contract for the August 6, 2024, Request for Proposal (RFP) issued by them for delivery at Bryan Mound for the first three months of 2025 of less than a million barrels a month for a total of approximately 2.475 MMB.  There were 15 offers for the August 6, 2024, RFP and one company’s offer was accepted, and the company was Macquarie Commodities Trading US LLC.    Ever since the 6 million barrels for Bryan Mound were not attained, on August 26, 2024, the SPR published another RFP to buy another 3.6 MMB of sour crude called Version 2 for delivery the first three consecutive months of 2025 starting in January.   The deadline to this RFP is September 4, 2024, please see the notice above for exact deadline time.  We will keep you informed on anything we hear.  If you would like to read more of the announcement from the DOE’s Office of Petroleum Reserves, please click the link: Biden-Harris Administration Purchases Barrels for the Strategic Petroleum Reserve – Bringing Total Purchased to over 47 Million Barrels at a Good Deal for American Taxpayers | Department of Energy.

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We hope you have a wonderful evening!

**Disclaimer: Please see the update from CESER for specifics to the solicitations. **