Monday, September 30, 2024

DOE’s Office of SPR has granted contracts to three companies for a total of 6.0 MMB of sour crude to be delivered next year to Bayou Choctaw.

Happy Monday!   Welcome back to another week of ESC News Blog! 

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 56 million barrels of oil, and they have lined up purchasing agreements for another approximately 4.65 million barrels for Bayou Choctaw for delivery by the end of the year and lined up a total of approximately 6.0 MMB for Bryan Mound for delivery in 2025.  The SPR has also speed up the return of exchanges in the amount of 5 million barrels over the summer. 

Did anyone happen to read the DOE’s CESER Updates Newsletter for the Strategic Petroleum Reserve on September 30, 2024, their update included, “The New Purchase for 6 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) has announced their Request for Proposal (RFP) which closed on September 25, 2024, has given contracts to three companies on September 27th.  The SPR has agreed to buy approximately 6.0 million barrels of sour crude to be transported to Bayou Choctaw SPR to be delivered 1.5 MMB a month starting February 2025 for 4 consecutive months with final delivery in May.  The DOE’s Office of SPR noted they received 50 RFP bids prior to the deadline, and the contracts were given to Shell Trading (US) Company (2.0MMB), ExxonMobil Oil Corporation (3.5MMB), and Macquarie Commodities Trading US LLC (500MB).  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 Purchases Barrels for the Strategic Petroleum Reserve – Bringing Purchases to Over 56 Million Barrels at a Good Deal for American Taxpayers | Department of Energy.

For more information on the Office of Strategic Petroleum Reserve (SPR) September 18, 2024, solicitation and September 27, 2024, award, please click the link: Strategic Petroleum Reserve - United States Department of Energy (doe.gov).

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! Keep cool!

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