The U.S. Department of Energy has finished its sale of oil from the Weeks Island, La., Strategic Petroleum Reserve site, which is being closed due to a geologic fracture (OGJ, Mar. 18, p. 32).
DOE said a recent rise in oil prices allowed it to raise $96.4 million from the sale of 5.095 million bbl, significantly less than the 7 million bbl it earlier estimated it would have to sell to meet its $100 million target. Average price received for the sour crude was $18.92/bbl.
The funds will be used to decommission Weeks Island and improve other SPR sites.
In the latest rounds of bidding, Ashland Petroleum Co. bought 75,000 bbl for $20.20/bbl for April delivery, Exxon bought 500,000 bbl for $20.20 and another 500,000 bbl for $19.95, both for April delivery, and Phibro Energy bought 150,0000 bbl at $20/bbl for delivery in March or April.
In the final sale, Phibro bought four batches totaling 925,000 bbl for deliveries in March or April at prices of $19.50-19.85/bbl.
DOE continues to transfer oil from Weeks Island. It has moved more than 30 million bbl of the 72 million bbl inventory to sites in Louisiana and Texas. It plans to complete the transfer this fall.
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