-- The US Department of Energy issued a request for proposals seeking emergency exchange up to 92.5 million barrels of crude oil from the Strategic Petroleum Reserve, the DOE said in a statement on Thursday.
The competitive bidding process was being opened as part of a broader international effort to stabilize oil markets, according to the DOE.
The solicitation advances a 172-million-barrel release ordered by US President Donald Trump and contributes to a coordinated 400-million-barrel action by member countries of the International Energy Agency.
DOE officials said the move is part of a rapid series of SPR exchange solicitations, describing the effort as the largest and fastest in the reserve's 50-year history. The goal is to move crude supplies quickly into the market to address short-term disruptions and reinforce energy security for the US and its allies.
Crude oil for the exchange will be sourced from four SPR storage sites: Bayou Choctaw, Bryan Mound, Big Hill, and West Hackberry. The department said the new offering builds on three prior emergency exchange solicitations that collectively awarded about 80 million barrels.
According to DOE, earlier exchanges demonstrated the reserve's ability to deploy oil quickly under emergency authority while securing a 24% premium on returned barrels, effectively increasing overall reserve volumes without cost to taxpayers.
Under the exchange mechanism, companies receiving crude must return equivalent volumes at a later date along with additional premium barrels, resulting in a net gain to the reserve.
DOE said bids for the solicitation are due by 11.00 am Central Time on May 4.