![]() ![]() Hurricane Katrina entered the Gulf of Mexico in late August 2005 and caused massive damage to oil production facilities, terminals, pipelines, and refineries. DOE received over 90 offers that resulted in 28 contracts with 15 companies for deliveries of 30,640,000 barrels. ![]() The SPR issued a Notice of Sale on June 24, 2011, to solicit competitive offers for the purchase of 30 million barrels of sweet crude oil to be delivered by the end of August 2011. The Secretary stated, "We are taking this action in response to the ongoing loss of crude oil due to supply disruptions in Libya and other countries and their impact on the global economic recovery." Under the IEA's response measures guidelines, the United States' obligation was for 30 million barrels. and its partners in the International Energy Agency (IEA) would release a total of 60 million barrels of oil onto the world market. On June 23, 2011, Secretary Chu announced that the U.S. obligation was 30 million barrels, and 30.6 million barrels was delivered by August 2011. The third time was in June 2011 when the United States and its partners in the International Energy Agency announced the release of 60 million barrels in response to crude oil supply disruptions in Libya and other countries. The first of several emergency loan requests from refiners was received and approved within 24 hours of Hurricane Katrina making landfall. Hurricane Katrina's impact was so great, in fact, that SPR emergency oil loans preceded the President's decision to drawdown and sell oil from the Reserve. The second was in September 2005 after Hurricane Katrina devastated the oil production, distribution, and refining industries in the Gulf regions of Louisiana and Mississippi. An emergency sale of SPR crude oil was announced the day the war began. Non-Emergency Sales: Although the Reserve was established to cushion oil markets during energy disruptions, non-emergency sales of oil from the Reserve can be authorized to respond to lesser supply disruptions or to raise revenues.ġ996-1997 Sales to Reduce the Federal Budget Deficit Emergency DrawdownsĪ Presidentially-directed emergency release has occurred three times in the history of the SPR. First, in 1991, at the beginning of Operation Desert Storm, the United States joined its allies in assuring the adequacy of global oil supplies when war broke out in the Persian Gulf. Exchange contracts provide for a loan of crude oil to be repaid, in kind, within a date certain, with additional premium barrels (similar to interest). The following provides a brief description of the times when crude oil has been released from the Strategic Petroleum Reserve (SPR).Įmergency Drawdowns: The SPR exists, first and foremost, as an emergency response tool the President can use should the United States be confronted with an economically-threatening disruption in oil supplies.Ĭrude Oil Test Sales: The SPR has also conducted Test Sales to ensure the readiness of the Reserve and its personnel to carry out a Presidentially-ordered drawdown.Įxchanges Agreements: Oil can also be released from the Strategic Petroleum Reserve under exchange arrangements (similar to loans) with private companies. ![]()
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