Wednesday, August 21, 2024

DOE has agreed to purchased 1.5 million barrels to refill Bayou Choctaw for January 2025 delivery

Happy Wednesday!

At this point, you know how we enjoy writing follow-ups for our 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 15, 2024, their update included, “The New Purchase of 1.5 million Barrels Showcase the Biden-Harris Administration’s Strong 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 has announced the recipients who were given contracts for the August 6, 2024, Request for Proposal (RFP) issued by them for delivery at Bayou Choctaw in January 2025.  Five companies presented 19 offers for the August 6, 2024, RFP and two companies offers were accepted.  They furthermore announced the 180 million barrels which were sold or set to sell have been kept or recovered in the SPR and we are at the 2022 levels for our reserves.  

Included in the newsletter on August 15, 2024, was solicitation for RFP for Bryan Mound in Texas; they requested bids for 6.0 million barrels of oil delivered 2 million barrels a month for January, February, March 2025, and the deadline closed on August 20, 2024.  The Bryan Mound site had been receiving major upgrades and maintenance which is concluding, and it will be ready to accept its first delivery in January 2025.  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 Additional Barrels for the Strategic Petroleum Reserve– Bringing Total Purchased to Nearly 45 Million at a Good Deal for AmericanTaxpayers | Department of Energy.    

If you would like help in looking into how to transport your liquid petroleum 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!

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