Issued on: January 10, 2006
Strategic Petroleum Reserve Completes Drawdown Deliveries
Crude Oil Sold to Mitigate Disruptions from Hurricane Katrina
Washington, D.C. – The Department of Energy has completed the last delivery of crude oil sold through its online 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 September 6-9, 2005 following President Bush’s finding of a “severe energy supply interruption,” as defined by the Energy Policy and Conservation Act of 1975, resulting from Hurricane Katrina. Deliveries were completed on January 4.
The Strategic Petroleum Reserve is capable of beginning deliveries as soon as 13 days from a Presidential directive to sell oil. Delivery schedules and crude oil transportation arrangements are the responsibility of the purchaser. Deliveries began on September 26 and 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 reduced the rate at which purchasers were able to take delivery of crude oil and process it into products. That resulted in changes to the original schedules.
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. Exchange agreements can be executed within days of receipt of an emergency loan request. Exchange oil deliveries began on September 3, 2005, and continued through October.
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For more information, contact: |
- John Grasser, Fossil Energy Office of Communications, 202-586-6503
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