US gets ready to sell crude stockpiles held in Strategic Petroleum Reserves
The US Department of Energy (DOE) will begin selling crude oil held within its Strategic Petroleum Reserves (SPR) beginning January 2017.
As part of the 2015 Bipartisan Budget Act, the DOE is allowed to sell up to US$375.4 million worth of crude through 2020, representing approximately 190 million barrels (assuming a sale price of US$50/bbl). Another US$2 billion worth of SPR will be sold through 2020 in order to pay for SPR infrastructure improvements and modernization.
The US currently holds 695 million barrels of crude in four SPR storage sites located in the Gulf of Mexico.
As a member of the International Energy Agency (IEA), the US is obliged to maintain at least 90 days of net imports in the event of a supply disruption. US SPR reserves are the largest in the world and currently represent about 141 days of import volumes.
Canada is also a member of the IEA but is exempted from strategic stockpiles since the country is a net exporter.