DOE sells SPR crude oil to 15 companies

The U.S. Department of Energy announced July 11 it had wrapped up the sale of 30.64 million barrels of oil President Obama ordered released from the Strategic Petroleum Reserve as part of an international effort to meet crude demand amid the Libyan crisis.

“A total of 28 contracts were awarded to 15 companies,” the DOE said in a press release. “The Department is currently coordinating with the successful contract awardees, the Maritime Administration, and the Department of Homeland Security to facilitate and streamline deliveries, including those for companies that have requested early delivery of the crude oil in July 2011.”

The Strategic Petroleum Reserve, which had been filled nearly to its capacity of 727 million barrels, uses huge salt caverns along the Gulf of Mexico coastline for storage. The DOE offered oil for delivery by pipeline, ship or barge.

Companies awarded contracts through the competitive bid process were Barclays Bank, BP, ConocoPhillips, ExxonMobil, Hess, J.P. Morgan Ventures Energy, Marathon, Murphy Oil, Plains Marketing, Shell, Sunoco, Tesoro, Trafigura, Valero and Vitol.

Prices for the crude ranged from $104.98 to $109.76 per barrel.

The United States released the oil as part of a multinational effort the Paris-based International Energy Agency announced June 23. The IEA said its 28 member countries would release a combined 60 million barrels over a one-month period. That equates to 2 million barrels per day.

—Wesley Loy