The US Department of Energy (DOE) on Thursday said it would provide storage space in the federal Strategic Petroleum Reserve (SPR) for struggling US oil producers. The department has issued a solicitation to provide 30 million barrels of SPR oil storage capacity to producers, with an additional 47 million barrels of capacity that will be provided later.
According to DOE, this is in line with President Trump’s instruction to fill the SPR to its maximum capacity. US SPR can store up to 713.5 million barrels of crude oil. DOE’s Office of Fossil Energy, which manages the SPR, said that the reserve could receive up to 685,000 barrels of crude every day. The facility is equipped with extensive storage, pipeline, and marine infrastructure along the US Gulf Coast.
The decision has received support from the American Petroleum Institute (API). US Energy Secretary Dan Brouillette said the step could help US oil firms which are impacted by the COVID-19 pandemic. The department is also working with the Congress to find a way to finance DOE’s purchase of more American oil.
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Published on April 7, 2020 1:06 PM (GMT+8)Last Updated on April 7, 2020 1:07 PM (GMT+8)
