Monday, September 9, 2024

DOE has agreed to purchase more oil to refill Bryan Mound in the tune of 3.4 MMB 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 due to the RFP closed September 4th!  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 and lined up 4.65 million barrels for Bayou Choctaw for delivery by the end of the year, and lined up approximately 1.1 MMB for Bryan Mound for delivery the first three months of 2025 for a total of  approximately 2.4 MMB.  The Department of Energy’s Office of SPR announced they have a new purchase agreement.

Did anyone happen to read the DOE’s CESER Updates Newsletter for the Strategic Petroleum Reserve on September 9, 2024, their update included, “The New Purchase of more than 3.4 Million Barrels Showcases 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 Strategic Petroleum Reserve (SPR) have announced the recipient who was given a contract for the August 26, 2024, Request for Proposal (RFP) issued by them for delivery at Bryan Mound for the first three months of 2025 for over a million barrels a month for a total of approximately 3.42 MMB.  There were 18 offers for the August 26, 2024, RFP and one company’s offer was accepted, and the company was Macquarie Commodities Trading US LLC.  The is the second contract awarded to Macquarie Commodities Trading US LLC in the last 30 days because they were awarded the first version for the RFP for Bryan Mound.  The Office of the SPR now has lined up the approximately 6 MMB which was the amount they were looking to fill Bryan Mound.  We will keep you informed on anything we hear from the SPR.  If you would like to read more of the announcement from the DOE’s Office of Strategic Petroleum Reserves, please click the link: Biden-Harris Administration Strategic Petroleum Reserve Purchases Secures More Than 50 Million Barrels at a Good Deal for American Taxpayers | 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! Be safe with the incoming storms heading to the Gulf Coast!

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