U.S. government aims to replace its reserves in 2007, expand SPR

Oil and Gas Investor This Week,  April, 2007  by Week, Gas Investor This

Tags: barrel, U.S. Government

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The U.S. Department of Energy plans this spring to buy up to 4 million barrels of crude oil in the first of a series to replace 11 million barrels in the Strategic Petroleum Reserve that were sold after Hurricane Katrina in 2005.

The purchases will be funded with proceeds from the 2005 sales, which should be far more dollars than the cost of replacing the reserves today. Oil and gas prices jumped after Katrina due to the sudden and severe reduction in supply.

In this first purchase, 2 million barrels of sweet crude are to be delivered to the West ...

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