The Biden administration continues to drain the Strategic Petroleum Reserve of emergency oil barrels in an effort to curb gas prices.
The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) today announced an additional Notice of Sale of up to 20 million additional barrels of crude oil from the Strategic Petroleum Reserve (SPR). This Notice of Sale is part of President Biden’s announcement on March 31, 2022 authorizing the sale of crude oil from the SPR to address the significant market supply disruption caused by Putin’s war on Ukraine and help lower energy costs for American families.
The President’s announcement called to release one million barrels of SPR crude oil per day over six months. This historic release of SPR crude has provided a record amount of crude oil supply to the U.S. economy and will continue until the end of October 2022.
DOE plans to release, from the SPR, up to 2.8 million barrels of sour crude oil and 17.2 million barrels of sweet crude oil, totaling 20 million barrels with deliveries from September 16 until October 21, 2022. DOE must receive bids for this notice no later than 10:00 a.m. Central Time on August 2, 2022. Contracts will be awarded to successful offerors no later than August 11, 2022.
Although the original intention of the SPR is to save a certain amount of oil in case of a natural disaster or an attack on the homeland, the administration has decided this was a better solution than simply drilling for more oil on American soil.
Replies