DOE Opens Bidding for 40 Million-Barrel SPR Oil Exchange

A new federal oil exchange program could shift millions of barrels into the market as officials continue efforts to balance supply and strengthen strategic reserves.

(P&GJ) — The U.S. Department of Energy has issued a Request for Proposal (RFP) for an exchange of up to 40 million barrels of crude oil from the Strategic Petroleum Reserve (SPR), continuing the administration's broader effort to release strategic inventories into the market.

The crude oil would be supplied from the SPR's Big Hill and Bryan Mound storage sites along the Gulf Coast. The solicitation opens a competitive bidding process for companies seeking access to the crude under the DOE's exchange authority.

According to the department, the latest offering is part of a larger 172-million-barrel SPR release program and contributes to a coordinated effort among International Energy Agency member nations to increase crude supplies available to global markets.

The DOE said previous exchange programs have awarded more than 133 million barrels of crude through three completed transactions. Under the exchange structure, participating companies receive oil from the reserve and later return the borrowed volumes along with additional premium barrels, increasing the SPR's inventory over time.

Curt Coccodrilli, acting assistant secretary for the Hydrocarbons and Geothermal Energy Office, said the exchange is intended to move crude supplies to refiners while addressing short-term supply pressures and supporting market stability.

The department said bids for the current solicitation are due by June 15. Oil supplied through the exchange program would be returned to the reserve under terms established through the competitive bidding process.

The Strategic Petroleum Reserve remains the world's largest emergency crude oil stockpile and is designed to provide supply security during market disruptions and emergencies.