US Department of Energy issues new contracts tied to Strategic Petroleum Reserve

The US Department of Energy (DOE) announced Monday the contract awards for the exchange of approximately 53.3 million barrels of crude from the Strategic Petroleum Reserve’s (SPR) Bayou Choctaw, Bryan Mound, Big Hill and West Hackberry sites.

The SPR was established in 1975 after the Arab oil embargo to mitigate supply disruptions. As of May 2026, it holds approximately 384 to 397 million barrels of crude oil, stored in underground salt caverns across Texas and Louisiana, according to the US Energy Information Administration.  

The announcement marks the next phase of DOE’s execution of the US government’s 172-million-barrel contribution to the International Energy Agency’s collective action to stabilize global oil supplies, following the Department’s request for proposal issued at the end of April.

Deliveries will begin immediately as the Department continues to move swiftly to address short-term supply disruptions and strengthen US energy security, it said.

“With today’s announcement of contract awards, we are advancing the President’s commitment to carrying out this historic emergency exchange,” Kyle Haustveit, DOE’s Assistant Secretary of the Hydrocarbons and Geothermal Energy Office, said in a news release.

“These actions continue to move oil swiftly into the market, address near-term supply needs, and ensure that the Strategic Petroleum Reserve remains strong through the return of premium barrels.”

The Department said it has executed a historic, record-speed series of SPR exchange solicitations — the largest in the Reserve’s 50-year history — moving critical crude oil supplies quickly to market to address short-term disruptions.

US President Donald Trump and Secretary Wright are managing the SPR as the critical national security asset it was designed to be: helping stabilize oil markets, protect Americans from supply disruptions, and strengthen energy security at home and abroad.

To date, approximately 35 million barrels have been delivered to the market, while Trump’s effort has generated approximately 35 million barrels of additional volume for the SPR at no additional cost to taxpayers, according to DOE estimates.

With these awards, DOE will move forward with an exchange of more than 53.3 million barrels of crude oil, while securing an approximately 28 percent return premium — representing 15.1 million barrels.

This action builds on earlier exchange actions, which have already awarded approximately 80 million barrels from the Bayou Choctaw, Bryan Mound and West Hackberry sites, demonstrating the reserve’s capacity to deliver crude oil with speed and precision under emergency conditions.

The exchange also allows participating companies to leverage the President’s limited Jones Act waiver, helping accelerate critical near-term oil flows into the market.

Companies may begin scheduling deliveries immediately. DOE will continue to evaluate market conditions and operational capacity as it advances additional steps to meet the full US commitment under the coordinated international release.