7/102 sources · 2 publishersUpdated Oct 11, 04:13 UTC
DOE approves temporary oil reserve loans to ExxonMobil and BP after hurricane
The U.S. Department of Energy said Saturday that ExxonMobil and BP America can draw crude from the Strategic Petroleum Reserve to ease Gulf supply disruptions linked to Hurricane Isaias. The authorization covers up to 4 million barrels, with each company eligible for up to 2 million barrels. The companies are required to replenish the reserve with additional barrels in 2027.
Why it matters
The arrangement gives ExxonMobil and BP access to emergency crude for near-term refinery operations while imposing a future repayment obligation. DOE says the reserve will receive more barrels than were withdrawn without additional taxpayer costs.
Key facts
- 1DOE authorized withdrawals totaling up to 4 million barrels of crude oil. peakoil.com
- 2ExxonMobil and BP America were each approved for exchanges of up to 2 million barrels. peakoil.com
- 3The participating companies must return the borrowed crude with additional premium barrels in 2027. peakoil.com
- 4DOE said the exchange is intended to address supply disruptions caused by Gulf weather conditions and Hurricane Isaias. peakoil.com
Open questions
- The reported repayment year conflicts: one account gives 2021, while the DOE announcement gives 2027.
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.