On 23rd June 2011, the International Energy Agency (IEA) announced that its 28 member countries would release 60 million bbls of crude oil and refined products into the global market. As part of that action, the President directed the Department of Energy (DPE) to auction 30.237 million bbls of light sweet crude oil from the Strategic Petroleum Reserve (SPR). Yesterday, bids were received.
Industry interest in the DOE’s sale of SPR oil was very high. Over 90 offers to purchase oil were receive on 29th June and the DOE’s offering of 30.2 million bbls of light, sweet crude oil was substantially oversubscribed. The DOE expects all contract awards to be completed by July 11th 2011, at which time details about purchasers and sales prices will be released.
The DOE has been in close consultation with key oil exporters to ensure the IEA action and the producer response to the current oil supply disruptions are mutually reinforcing.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/01072011/us_doe_on_spr_sale/