|
The US Department of Energy (DOE) has issued a request for proposals (RFP) to exchange up to 40 million barrels of crude oil from the Strategic Petroleum Reserve (SPR), as part of the country's commitment to support global oil supply stability and address short-term disruptions.
The latest action is part of the 172-million-barrel SPR release previously announced by President Donald Trump in coordination with an overall 400-million-barrel commitment by International Energy Agency (IEA) member nations, the DOE said in a post on X. The crude will be sourced from the SPR's Big Hill and Bryan Mound sites, with deliveries under awarded exchanges scheduled for November and December 2026. "With today's actions, the United States continues to lead the coordinated efforts to stabilize oil markets for the benefit of Americans and people around the world," US Secretary of Energy Chris Wright said. The latest solicitation will allow participating companies to borrow the crude and return the 40 million barrels with additional premium barrels, meaning the exchange is intended to provide immediate supplies to the market while increasing the SPR's longer-term inventory without cost to taxpayers. Wright said the United States and Japan were delivering on their commitments, while urging other participating European countries to fulfil their pledged releases. "These exchanges will also ensure America's Strategic Petroleum Reserve continues to be refilled, while saving taxpayers more than $3 billion," Wright said. The DOE said the latest move builds on five previous solicitations that collectively awarded more than 133 million barrels across four completed exchanges. According to the department, earlier exchanges demonstrated the SPR's ability to quickly supply crude during emergency situations while achieving a 25 per cent premium in returned barrels, allowing the reserve to expand while saving taxpayers billions of dollars. The DOE said the exchanges are being carried out under its authority to provide crude to companies during short-term supply disruptions while ultimately receiving more oil back than was released. The SPR, which has an authorised storage capacity of 714 million barrels, holds emergency crude in underground salt caverns at four sites along the US Gulf Coast and serves as a key tool for responding to petroleum supply disruptions. (ANI)
|
