DOE completes deliveries of SPR crude sold after Katrina

Washington (Platts)--10Jan2006

The US Department of Energy said Tuesday it has completed the last
delivery of crude oil sold through a competitive sale from the Strategic
Petroleum Reserve in the wake of Hurricane Katrina. 

     The sale resulted in award of 11-mil bbl of oil to five companies that
submitted favorable bids. DOE offered a total of 30-mil bbl during the Sep 6-9
sale, following President George W. Bush's finding of a "severe energy supply
interruption" in the aftermath of Katrina. Deliveries were completed Jan 4. 

     Deliveries began on Sep 26 and were originally expected to be completed
in October. However, the arrival of Hurricane Rita along the Gulf coasts of
Louisiana and Texas on Sep 24 caused significant damage to some refineries,
terminals and distribution systems that hindered the ability of companies to
take delivery of the SPR crude. That prompted changes in DOE's
schedule. 

    In addition to the competitive sale of oil, the department also approved
loans of SPR oil immediately after Katrina devastated the Gulf Coast. DOE
initially agreed to loans of up to 13.2-mil bbl, but later modified that
to 9.8-mil bbl at the request of companies involved. Deliveries of loaned
oil began on Sep 3 and continued through October.

		--Bill Loveless; bill_loveless@platts.com

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