The U.S. Department of Energy’s (DOE) Office of Petroleum Reserves announced solicitation to purchase up to 3.0 million barrels of U.S.-produced crude oil for the Strategic Petroleum Reserve (SPR).
Office of Cybersecurity, Energy Security, and Emergency Response
October 28, 2024
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New Solicitation for up to 3 Million Barrels Continues Biden-Harris Administration’s Commitment to Replenish Reserve with Emergency Sale Revenues, Maintain the SPR’s Operational Readiness, and Protect the Nation’s Energy Security
WASHINGTON, D.C. — Today, the U.S. Department of Energy’s (DOE) Office of Petroleum Reserves announced a new solicitation for up to 3 million barrels of oil for delivery to the Strategic Petroleum Reserve’s Bryan Mound site from April 2025 through May 2025. Building on the successful direct purchase strategy that has secured over 55 million barrels, this action is another step in DOE’s plan of action to make consistent solicitations when oil prices are favorable for taxpayers. DOE continues to aim for $79 per barrel or less, significantly lower than the average of about $95 per barrel DOE received for 2022 emergency SPR sales.
To date, DOE has secured over 190 million barrels for the SPR including 140 million in cancelled congressionally mandated sales and the direct purchase of over 55 million barrels of oil for the SPR at an average price of about $76 per barrel. This is nearly $20 per barrel lower than the $95 average sales price for 2022’s emergency sales, meeting the Administration’s commitment to secure a good deal for taxpayers. DOE will continue to evaluate options to refill the SPR while securing a good deal for taxpayers, taking into account planned exchange returns and market developments.
Today’s announcement advances the Administration’s commitment to safeguard and replenish this critical energy security asset. This follows the historic release from the SPR to address the significant global supply disruption caused by Putin’s war on Ukraine and help keep the domestic market well supplied, ultimately helping to bring down prices for American consumers and businesses. Analysis from the Department of the Treasury indicates that SPR releases in 2022, along with coordinated releases from international partners, reduced gasoline prices by as much as 40 cents per gallon.
Bids for the solicitation will be due no later than 11:00 a.m. Central Time on November 4, 2024 and are contingent on available funding.
Delivery to Bryan Mound will be up to 3.0 million barrels collectively from April 2025 through May 2025.The Administration’s ongoing three-part replenishment strategy to get the best deal for taxpayers while increasing SPR stocks includes: (1) Direct purchases with revenues from emergency sales; (2) Exchange returns that include a premium of oil above the volume delivered; and (3) Securing legislative solutions that avoid unnecessary sales unrelated to supply disruptions. DOE has already secured cancellation of 140 million barrels of congressionally mandated sales scheduled for Fiscal Years 2024 through 2027. These cancellations have resulted in significant progress toward replenishment.
The SPR continues to be the world’s largest supply of emergency crude oil. The federally owned oil stocks are stored in underground salt caverns at four sites in Texas and Louisiana. Through scheduled maintenance periods and the Life Extension 2 program, DOE continues to prioritize the operational integrity of the SPR to ensure that it can continue to meet its mission as a critical energy security asset. The SPR has a long history of protecting the economy and American livelihoods in times of emergency oil shortages.
For more information on the SPR please visit Infographic: Strategic Petroleum Reserve and Fact Sheet: Strategic Petroleum Reserve.