DOE To Release Half Million Barrels From Strategic Petroleum Reserves To Minimize Post-Harvey Price Spikes

Posted On: 8/31/2017

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WASHINGTON -- The Department of Energy said it is tapping into the nation's Strategic Petroleum Reserve to mitigate disruptions and subsequent price spikes created by the fallout of Hurricane Harvey.

The move follows a request by Sen. Edward Markey (D-MA) to tap into the SPR. It is the first emergency release from the SPR since Hurricane Isaac hit Louisiana and disrupted processing in 2012.

Energy Secretary Rick Perry has authorized the release of 500,000 barrels of crude oil, which will be transported via pipeline to Phillips 66's refinery in Lake Charles, LA.

The department will continue to provide assistance as deemed necessary, and will continue to review incoming requests for SPR crude oil, DOE spokesperson Jess Szymanski said.

According to information released by the DOE, the half million barrels from the SPR is comprised of 200,000 barrels of sweet crude and 300,000 of sour crude.

According to the deal, Phillips 66 must contribute back more oil than it received.