Spr drawdown chart6/30/2023 ![]() ![]() ![]() Most recently, the SPR has been tapped during the COVID-19 pandemic and in response to Russia’s invasion of Ukraine, according to the CFR: The main goal of the SPR is to “alleviate significant oil supply disruptions or price inflation” primarily domestically but also internationally. The SPR is under command of the President (and Congress), who can initiate sale of this oil in cases where this is deemed fit (such as domestic shortages, natural disasters, and wars). Invoices would be issued shortly after deliveries are accepted and receipts for payment would be due no later than 30 days after invoicing.The United States of America started in the 1970s to main an emergency stockpile of oil called the Strategic Petroleum Reserve (SPR). Contracts will be awarded through a competitive sales process in mid-March for crude oil deliveries in April. The Department announced the sale today by issuing a Notice of Sale to those companies who have registered on the SPR Sales Notification List.The Department has been discussing this internally for many months, and the Notice of Sale is being issued today so refineries interested in purchasing crude oil from the SPR can plan accordingly for when their facilities come out of their annual maintenance cycle at Gulf Coast refineries when crude oil stocks are being replenished in preparation for switchover to summer grade gasoline.The release of up to 5 million additional barrels of sour crude into the marketplace through the proposed test sale is expected to have minimal market impact.The price index for price comparison purposes is domestic sour crude sold in the same market center as the sale (Southern Green Canyon crude oil). During the sale, crude oil may not be sold at a price less than 95% of market prices for comparable crude being sold in the same area.Of this, 4 million barrels of sour crude would be offered from the SPR West Hackberry site and 1 million barrels of sour crude would be offered from the SPR Big Hill site. 5 million barrels of SPR crude oil will be offered for sale.A test sale will help evaluate how recent infrastructure and transportation changes may impact the ability to distribute SPR crude oil within this distribution system. The sale will help the Department assess the SPR TEXOMA distribution system, which includes the SPR sites at Big Hill, Texas and West Hackberry, Louisiana.Notice of Test Sale can be found here:.In order to appropriately assess the system’s capabilities in the event of a disruption, today the Department of Energy authorized a test drawdown and sale of up to 5 million barrels of sour crude oil.” – DOE spokesman, Bill Gibbons Due to the recent dramatic increase in domestic crude oil production, significant changes in the system have occurred - including pipeline expansion, construction of new infrastructure, reversed flow of existing pipelines and increased use of domestic crude oil terminals. “By law, the Department of Energy is required to conduct continual evaluation of the Strategic Petroleum Reserve system’s drawdown and sales procedures. Account icon An icon in the shape of a person's head and shoulders. ![]()
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