The U.S. Energy Department issued a notice of sale of crude from the emergency reserve on April 1, a day after President Joe Biden announced the largest release ever in an effort to push down fuel prices that have soared during Russia’s war with Ukraine.
About 1 million barrels of oil will be sold from the Strategic Petroleum Reserve (SPR) for six months starting in May. Biden said the oil will serve as a bridge until domestic producers can boost production to help bring oil supply back into balance with demand.
Last month Biden banned U.S. imports from Russia, which produces about 10% of the world’s oil.
RELATED:
Oil and Gas Groups Assail Biden’s ‘Misleading’ Call to Penalize US Drillers for Unused Leases
The first 90 million barrels of SPR oil will be released between May and July, including 20 million barrels that had already been scheduled to get to market in May through previous releases. The other 90 million barrels will be released between August and October, the Energy Department said.
The reserve, which currently contains about 568.3 million barrels, or the lowest since about May 2002, is held in four sites in coastal Texas and Louisiana. Up to 38.5 million barrels will be sold through July from two Texas sites, and up to 31.5 million barrels will be sold from the two Louisiana sites, the department said.
Recommended Reading
E&P Highlights: June 4, 2024
2024-06-03 - Here’s a roundup of the latest E&P headlines, with new contracts awarded and larger commitments made for oil and gas exploration in South Korea and Australia.
E&P Highlights: May 28, 2024
2024-05-28 - Here’s a roundup of the latest E&P headlines, including production start up at a field using an innovative emissions reduction technology.
Kosmos Energy Reports First Oil Production at GoM’s Winterfell
2024-07-03 - Winterfell, operated by Beacon Offshore Energy, will produce high margin barres with a quick payback, Kosmos CEO Andrew G. Inglis said.
Kosmos’ Stars Shine Bright in 2Q
2024-08-08 - With the startups of Jubilee Southeast and Winterfell, Kosmos Energy is halfway to achieving its production goal.
US Drillers Cut Oil, Gas Rigs for First Time in Three weeks
2024-08-02 - The oil and gas rig count, an early indicator of future output, fell by three to 586 in the week to Aug. 2. Baker Hughes said that puts the total rig count down 73, or 11%, below this time last year.