On July 12, Jin10 reported that the U.S. Department of Energy today approved a strategic petroleum reserve (SPR) swap with ExxonMobil (XOM.N) to address logistical challenges in crude oil transportation faced by the company’s Baton Rouge refinery. Energy Secretary Granholm authorized this action to ensure a stable supply of transportation fuels across Louisiana and the wider Gulf Coast region. This initiative will maintain the operational flexibility of the strategic petroleum reserve and will not affect or delay the current process of replenishing reserves by the Department of Energy. Under the swap agreement, the Department of Energy will provide up to 1 million barrels of crude oil from the SPR. This swap will support ExxonMobil in restoring refining capacity that was reduced due to offshore supply disruptions. ExxonMobil will return the borrowed crude oil in full and compensate the strategic petroleum reserve with additional crude oil, with no costs borne by taxpayers throughout the process.
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The U.S. uses SPR to support ExxonMobil to ensure fuel supply in the Gulf of Mexico.
On July 12, Jin10 reported that the U.S. Department of Energy today approved a strategic petroleum reserve (SPR) swap with ExxonMobil (XOM.N) to address logistical challenges in crude oil transportation faced by the company’s Baton Rouge refinery. Energy Secretary Granholm authorized this action to ensure a stable supply of transportation fuels across Louisiana and the wider Gulf Coast region. This initiative will maintain the operational flexibility of the strategic petroleum reserve and will not affect or delay the current process of replenishing reserves by the Department of Energy. Under the swap agreement, the Department of Energy will provide up to 1 million barrels of crude oil from the SPR. This swap will support ExxonMobil in restoring refining capacity that was reduced due to offshore supply disruptions. ExxonMobil will return the borrowed crude oil in full and compensate the strategic petroleum reserve with additional crude oil, with no costs borne by taxpayers throughout the process.