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.
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.
2022-05-17 - John Arnold, a former Enron trader and hedge fund honcho known as the “king of natural gas,” is backing Energy Opportunities Capital (EOC) Partners LLC through his family office.
2022-05-02 - The NOPEC legislation could create unintended negative consequences for the U.S. oil and natural gas industry, while likely having limited impact on the market concerns that drive the bill, the API said in a letter seen by Reuters.
2022-05-16 - Saudi Aramco, which is at par with Apple Inc. as the world’s most valuable company, reported a net income of $39.5 billion for the quarter to March 31 from $21.7 billion a year earlier.
2022-04-28 - In a call with analysts, CEO Patrick Pouyanne said TotalEnergies—which has maintained assets in Russian gas projects—would continue to fulfill its contracts there unless sanctions demand otherwise.
2022-04-27 - Hess reports D&C costs in the Bakken have increased about 7% from last year. “Like our competitors, were also seeing upward cost pressure across both onshore and offshore businesses,” CEO John Hess told analysts in a webcast.