Applications for replenishment of oil reserves in U. S. were rejected
2023.01.08 02:12
Applications for replenishment of oil reserves in U. S. were rejected
Budrigannews.com – According to a DOE spokesperson, the initial round of bids from oil companies to resupply a small quantity of oil to the nation’s emergency stockpile in February have been rejected by the DOE.
The Department of Energy (DOE) announced last month that it would purchase up to 3 million barrels for delivery to the Strategic Petroleum Reserve in February. This would be the first purchase since the record-breaking 180 million barrel release that occurred last year in an effort to control pump prices in the United States.
In an email statement, the spokesperson stated, “Following review of the initial submission, DOE will not be making any award selections for the February delivery window.”
The spokesperson stated, “DOE will only select bids that meet the required crude specifications and are at a price that is a good deal for taxpayers.”
There were no details about the submissions.
The 180 million barrel sale was announced by President Joe Biden at the end of March as a means of combating rising gasoline costs following Russia’s invasion of Ukraine in February. Russia is the world’s largest exporter of fossil fuels.
The SPR dropped to its lowest level since 1984 as a result of that sale.
The government has stated that it would like to repurchase the oil at around $70 per barrel.
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