DOE Awards Contracts for 53 Million-Barrel SPR Oil Exchange

The Department of Energy awarded contracts tied to a 53.3 million-barrel Strategic Petroleum Reserve exchange as the U.S. continues emergency crude releases aimed at stabilizing global oil markets.

(P&GJ) — The U.S. Department of Energy has awarded contracts covering approximately 53.3 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) as part of the country’s contribution to an International Energy Agency-coordinated emergency oil release.

The contracts involve crude deliveries from the SPR’s Bayou Choctaw, Bryan Mound, Big Hill and West Hackberry storage sites. DOE said deliveries are expected to begin immediately as the agency works to address near-term supply disruptions and support energy market stability.

The latest awards represent another phase of the federal government’s broader emergency exchange program, which DOE said has already moved roughly 35 million barrels into the market.

DOE Assistant Secretary for the Hydrocarbons and Geothermal Energy Office Kyle Haustveit said the exchange program is intended to quickly move crude supplies into the market while maintaining the long-term strength of the reserve.

According to DOE, the exchange tied to the latest contracts includes a roughly 28% return premium, equivalent to approximately 15.1 million additional barrels that will eventually be returned to the SPR.

The agency said the exchange program also allows participating companies to utilize the administration’s temporary Jones Act waiver to accelerate domestic crude transport and deliveries.

DOE added that it will continue evaluating market conditions and operational capacity as additional exchange actions move forward under the coordinated international release program.