Energy Department Awards New Contracts from Strategic Petroleum Reserve, Advancing Emergency Exchange

WASHINGTON-The U.S. Department of Energy's (DOE) Hydrocarbons and Geothermal Energy Office (HGEO) today announced awards of contracts to exchange 26 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) at the West Hackberry site, marking the next phase of DOE's execution of the United States' 172-million-barrel contribution to the International Energy Agency's collective action to stabilize global oil supply. These awards follow DOE's recent Request for Proposal (RFP) for this portion of the emergency exchange, with deliveries beginning immediately as the Department continues to move quickly to address short-term supply disruptions and strengthen energy security for the United States.

"Through this emergency exchange, the Department is taking swift action to support near-term supply needs while strengthening the Strategic Petroleum Reserve for the long term," said Kyle Haustveit, Assistant Secretary of the Hydrocarbons and Geothermal Energy Office. "By returning additional premium barrels at no cost to taxpayers, this exchange reinforces market reliability today and delivers meaningful value to the American people when those barrels are returned."

Under these awards, DOE will move forward with an exchange of 26 million barrels of crude oil, which will be returned with additional premium barrels by next year-supporting energy security and delivering value for the American people at no cost to taxpayers. This action builds on earlier exchange actions, which have already awarded approximately 55 million barrels from the Bayou Choctaw, Bryan Mound, and West Hackberry sites, demonstrating the reserve's ability to deliver crude efficiently under emergency conditions. To date, more than 10 million barrels have already been delivered to market. The exchange also allows participating companies to take advantage of the President's limited Jones Act waiver, helping accelerate critical near-term oil flows into the market.

Companies can begin scheduling deliveries immediately. DOE will continue to evaluate market conditions and operational capacity as it advances additional steps to meet the full United States commitment under the coordinated international release.

For more information on the Strategic Petroleum Reserve, visit DOE's website.

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