ENERGY DEPARTMENT AWARDS CONTRACTS FROM THE STRATEGIC PETROLEUM RESERVE, ADVANCING PRESIDENT TRUMP’S HISTORIC EMERGENCY EXCHANGE
The U.S. Department of Energy announced contracts have been awarded for 53.3 million barrels of crude oil from the Strategic Petroleum Reserves
WASHINGTON—The U.S. Department of Energy (DOE) announced today the contract awards for the exchange of approximately 53.3 million barrels of crude from the Strategic Petroleum Reserve’s (SPR) Bayou Choctaw, Bryan Mound, Big Hill, and West Hackberry sites. Today’s announcement marks the next phase of DOE’s execution of the United States’ 172-million-barrel contribution to the International Energy Agency’s collective action to stabilize global oil supplies. It follows DOE’s Request for Proposal (RFP) issued at the end of April. Deliveries will begin immediately as the Department continues to move swiftly to address short-term supply disruptions and strengthen U.S. energy security.
“With today’s announcement of contract awards, we are advancing the President’s commitment to carrying out this historic emergency exchange,” said DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office Kyle Haustveit. “These actions continue to move oil swiftly into the market, address near-term supply needs, and ensure that the Strategic Petroleum Reserve remains strong through the return of premium barrels.”
Under President Trump’s leadership, the Department has executed a historic, record-speed series of SPR exchange solicitations—the largest in the Reserve’s 50-year history—moving critical crude oil supplies quickly to market to address short-term disruptions. President Trump and Secretary Wright are managing the SPR as the critical national security asset it was designed to be, helping stabilize oil markets, protect Americans from supply disruptions, and strengthen energy security at home and abroad. To date, approximately 35 million barrels have been delivered to the market, while President Trump's historic effort has generated approximately 35 million barrels of additional volume for the SPR at no additional cost to taxpayers.
With these awards, DOE will move forward with an exchange of more than 53.3 million barrels of crude oil, while securing an approximately 28 percent return premium—representing 15.1 million barrels. This action builds on earlier exchange actions, which have already awarded approximately 80 million barrels from the Bayou Choctaw, Bryan Mound, and West Hackberry sites, demonstrating the reserve’s capacity to deliver crude oil with speed and precision under emergency conditions. The exchange also allows participating companies to leverage the President’s limited Jones Act waiver, helping accelerate critical near-term oil flows into the market.
Companies may begin scheduling deliveries immediately. DOE will continue to evaluate market conditions and operational capacity as it advances additional steps to meet the full United States commitment under the coordinated international release.
For more information on the Strategic Petroleum Reserve, visit DOE's website.
|
