"The Strategic Petroleum Reserve is a critical national asset that bolsters our energy security," Energy Secretary Samuel Bodman said. "By replenishing the Strategic Petroleum Reserve, we can ensure that there are additional supplies of fuel for the American people in cases of severe supply disruption."
The SPR capacity is 727 million barrels and currently holds 689 million barrels. The purchases will occur spread out over the next few months and bids will be accepted based on fair market value.
The department's end goal is to fill the reserves during May, June and July at a rate of 100,000 barrels per day.The two sites that may receive either some or all of the additional reserves are the West Hackberry, La., site, and the Bryan Mound, Texas, site. Energy Department will accept bids through April 3 and make final decisions by the following week.
The revenue from the emergency sale in 2005 will be used to purchase the replacement barrels for the Strategic Petroleum Reserve.
In the months following Hurricane Katrina in the fall of 2005, 11 million barrels of oil were sold to make up for the losses. These upcoming sales transactions would be the first direct purchase of crude oil for the reserve since 1994.
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