{"id":64689,"date":"2023-01-10T16:50:13","date_gmt":"2023-01-10T21:50:13","guid":{"rendered":"https:\/\/olduvai.ca\/?p=64689"},"modified":"2023-01-10T16:50:13","modified_gmt":"2023-01-10T21:50:13","slug":"washington-has-trouble-refilling-the-spr-after-220-million-barrel-draw","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=64689","title":{"rendered":"Washington Has Trouble Refilling The SPR After 220 Million Barrel Draw"},"content":{"rendered":"<h3><a href=\"https:\/\/oilprice.com\/Energy\/Crude-Oil\/Washington-Has-Trouble-Refilling-The-SPR-After-220-Million-Barrel-Draw.html\">Washington Has Trouble Refilling The SPR After 220 Million Barrel Draw<\/a><\/h3>\n<div id=\"key_points\" class=\"wysiwyg clear\">\n<ul>\n<li><strong>The DoE has received several offers for February purchases to refill the SPR.<\/strong><\/li>\n<li><strong>For February, the plan was to purchase 3 million barrels, ideally when oil dropped to around $70 per barrel.<\/strong><\/li>\n<li><strong>The rejected bids are prompting speculation that refilling the SPR will be challenging, at best.<\/strong><\/li>\n<\/ul>\n<\/div>\n<div class=\"articleImageContainer\"><picture class=\"lozad-picture singleArticle__articleImage\" data-iesrc=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2023-01-09_senb4vjg36.jpg\" data-loaded=\"true\"><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/420x175\/2023-01-09_senb4vjg36.jpg\" media=\"(max-width: 480px)\" \/><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2023-01-09_senb4vjg36.jpg\" media=\"(min-width: 480px)\" \/><img \/><\/picture><\/div>\n<div id=\"article-content\" class=\"wysiwyg clear\">\n<p>After drawing over\u00a0<a href=\"https:\/\/www.spr.doe.gov\/dir\/dir.html\" target=\"_blank\" rel=\"noopener\">221 million barrels<\/a>\u00a0of oil from the Strategic Petroleum Reserve (SPR) in 2022, Washington is having a tough time refilling it in the New Year, with the Department of Energy (DoE) rejecting the first offers on the grounds that they failed to benefit taxpayers.<\/p>\n<p>The DoE has by now received several offers for February purchases to refill the SPR, according to both\u00a0<a href=\"https:\/\/ca.finance.yahoo.com\/news\/us-rejects-oil-offers-first-004357945.html\" target=\"_blank\" rel=\"noopener\">Bloomberg<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.reuters.com\/business\/energy\/us-department-energy-says-rejects-initial-bids-resupply-oil-stockpile-2023-01-08\/\" target=\"_blank\" rel=\"noopener\">Reuters<\/a>. However, those offers have been rejected as too expensive or failing to meet other requirements.<\/p>\n<p>For February, the plan was to purchase 3 million barrels, ideally when oil dropped to around $70 per barrel. This 3-million-barrel pilot program would have given sellers a fixed price for future deliveries and is in contrast to the DoE\u2019s normal operating procedure, which had seen it purchase oil for faster delivery without fixed-price contracts.<\/p>\n<p>Right now, WTI is trading around $75\/$76 per barrel, and new data from the Energy Information Administration (EIA) released on Monday shows another\u00a0<a href=\"https:\/\/twitter.com\/staunovo\/status\/1612425502983176194\" target=\"_blank\" rel=\"noopener\">0.8 million barrel draw<\/a>\u00a0from the SPR.<\/p>\n<p>According to Bloomberg, citing unnamed sources \u201cfamiliar with the matter\u201d, the DoE will now postpone its originally planned February purchases and embark on a new approach for fixed-price offers.<\/p>\n<p>\u201cDOE will only select bids that meet the required crude specifications and that are at a price that is a good deal for taxpayers,\u201d the DoE said in a Friday statement carried by news agencies. \u201cFollowing review of the initial submission, DOE will not be making any award selections for the February delivery window.\u201d<\/p>\n<p>\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Washington Has Trouble Refilling The SPR After 220 Million Barrel Draw The DoE has received several offers for February purchases to refill the SPR. For February, the plan was to purchase 3 million barrels, ideally when oil dropped to around $70 per barrel. The rejected bids are prompting speculation that refilling the SPR will be [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[12294,5332,10334,9019,827,834,865],"class_list":["post-64689","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-charles-kennedy","tag-oilprice-com","tag-spr","tag-strategic-petroleum-reserve","tag-united-states","tag-us","tag-washington"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64689"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64689\/revisions"}],"predecessor-version":[{"id":64690,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64689\/revisions\/64690"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}