The US Department of Energy’s (DOE) Office of Fossil Energy has announced that DOE will commence a sale of crude oil from the Strategic Petroleum Reserve (SPR) in late February 2017.
Under Section 5010 of the 21st Century Cures Act (Public Law 114-255), signed on 13 December 2016, the Secretary of Energy is directed to drawdown and sell 25 million bbls of SPR crude oil over three consecutive years, commencing with 10 million bbls this fiscal year. The entire 10 million bbls will be sour crude drawn from three sites—Bryan Mound and Big Hill in Texas, and West Hackberry in Louisiana. Revenues from the sale will be deposited in the general fund of the US Treasury to carry out the National Institutes of Health innovation projects as designated in the 21st Century Cures Act.
Any company registered in the SPR’s Crude Oil Sales Offer Programme is eligible to participate in SPR crude oil sales. Other interested companies may register through the SPR website.
The SPR is the world's largest supply of emergency crude oil. The federally-owned oil stocks are stored in underground salt caverns at four storage sites in Texas and Louisiana.
Read the article online at: https://www.hydrocarbonengineering.com/refining/10022017/doe-plans-mandated-sale-of-crude-oil/