Issued on: May 30, 2007
SPR Hurricane Katrina Loan Repayment Complete
Washington, DC - The Department of Energy's Strategic Petroleum Reserve (SPR) today received a shipment of 63,000 barrels of sweet crude, completing repayment of the emergency loans made to six refiners following Hurricane Katrina in September 2005. The crude oil is being delivered to the SPR's Bayou Choctaw, Louisiana site
The loans, totaling 9.8 million barrels of crude oil, were made to refiners within days after Hurricane Katrina struck. Contract terms were negotiated for repayment of the oil within a defined term and payment to the Government of premium barrels of approximately 500,000 barrels.
The U.S. Strategic Petroleum Reserve is the largest stockpile of government-owned emergency crude oil in the world. It was established in the aftermath of the 1973-74 oil embargo and provides the President with a powerful option should a disruption in commercial oil supplies threaten the U.S. economy.
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