The US DOE is turning away some light crude, such as produced in Texas’s Eagle Ford basin for injection into the strategic petroleum reserves because it doesn’t blend well with the existing denser stocks according to Bloomberg.

  • The US is under pressure to restore the depleted SPR but the preference for dense oil effectively bars multiple US crudes.
  • Higher crude prices and operational limitations have so far limited restocking efforts, which have even seen the US cancelling some purchase programs.
  • The Energy Department in September cancelled a $108m contract with Macquarie because the offer of more than 1mbbls included an Eagle Ford grade. The cancellation was by mutual agreement.
  • There is no official ban on specific crudes, but the DOE purchase provisions now specify that no oil above a certain density would be considered.
  • The SPR is currently up to 358.0mbbls from a low of 346.76mbls in July but is still well below the capacity of 714mbbls.
  • The US DOE last week announced their latest tender for 3mbbl of sour crude for the SPR for July delivery.

Image


Source: OilX

OIL: US SPR Restocking Efforts Complicated by Existing Sour Stocks

Last updated at:Feb-12 11:48By: David Lee
US

The US DOE is turning away some light crude, such as produced in Texas’s Eagle Ford basin for injection into the strategic petroleum reserves because it doesn’t blend well with the existing denser stocks according to Bloomberg.

  • The US is under pressure to restore the depleted SPR but the preference for dense oil effectively bars multiple US crudes.
  • Higher crude prices and operational limitations have so far limited restocking efforts, which have even seen the US cancelling some purchase programs.
  • The Energy Department in September cancelled a $108m contract with Macquarie because the offer of more than 1mbbls included an Eagle Ford grade. The cancellation was by mutual agreement.
  • There is no official ban on specific crudes, but the DOE purchase provisions now specify that no oil above a certain density would be considered.
  • The SPR is currently up to 358.0mbbls from a low of 346.76mbls in July but is still well below the capacity of 714mbbls.
  • The US DOE last week announced their latest tender for 3mbbl of sour crude for the SPR for July delivery.

Image


Source: OilX

MNI Podcasts

Unearthing fresh policy thinking & market intelligence.

Copyright 2024Twitter, Xlinkedin logo