Yesterday the U.S. Department of Energy’s Office of Fossil Energy announced it would sell up to six million barrels of crude oil from the Strategic Petroleum Reserve (SPR) in a price-competitive bid sale. In FY 2019, the DOE is authorized to sell up to $300 million worth of crude oil from the SPR.

DOE plans to draw down and sell crude oil from three SPR sites—Bryan Mound and Big Hill in Texas, and West Hackberry in Louisiana. This sale will fulfill requirements for Section 404 of the Bipartisan Budget Act of 2015 (Public Law 114-74), which authorizes the Secretary of Energy to draw down and sell up to $2 billion of SPR crude oil, for fiscal years (FYs) 2017 through 2020, to carry out an SPR modernization program.

The sale is part of t...

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