Over Eight Million Barrels Delivered from Strategic Reserve Following Competitive Sale

Reductions in Refining Capabilities Resulting from Gulf Hurricanes Extend Delivery Schedules Into December

Washington, DC  –  The Department of Energy has completed delivery of 8.2 million barrels of crude oil sold as a result of the September 6-9, 2005, on-line competitive sale of the Strategic Petroleum Reserve stockpile.  The sale resulted in award of 11 million barrels of crude oil to five companies who submitted favorable bids.  

A total of 30 million barrels were offered as a result of President George W. Bush’s September 2, 2005, finding of a “severe energy supply interruption,” as defined by the Energy Policy and Conservation Act of 1975, resulting from Hurricane Katrina. 

MORE INFO Read more about the competitive sale

Deliveries, which began on September 26, were originally expected to be completed during October.  However, the arrival of Hurricane Rita along the Gulf coasts of Louisiana and Texas on September 24 caused significant damage to several refineries, terminals, and distribution systems that has reduced the rate at which purchasers can take delivery of crude oil and process it into products.  Transfer of crude oil is now planned to continue into December.
 
In addition to the competitive sale of crude oil, the Strategic Petroleum Reserve also approved loans of crude oil immediately after the devastation of Hurricane Katrina was realized.  Exchange agreements were reached for up to 13.2 million barrels but were later modified to 9.8 million barrels at the request of the contractors.  All of the exchange oil requested was delivered during September and October.