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Department of Energy Announces Two Additional Loans of Oil from the Strategic Petroleum Reserve

September 2, 2005 - 9:43am

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WASHINGTON, D.C. - Secretary of Energy Samuel W. Bodman announced today that the Department of Energy has approved two additional loans of crude oil from the Strategic Petroleum Reserve (SPR).

"We are committed to doing everything in our power to meet the immediate needs of those directly affected by Hurricane Katrina. By utilizing the resources from the Strategic Petroleum Reserve, we will help minimize any potential supply disruptions as a result of the hurricane. With the Reserve fully operational, we will be able to start delivering this oil as soon as tomorrow," Secretary Bodman said. "In addition, we are continuing to review loan requests as they come in. When a loan becomes finalized, we will announce it."

The two loans approved today are: 2 million barrels to British Petroleum (BP) and 1.5 million barrels to Marathon Oil. The crude oil will be loaned from the SPR under short-term contractual agreements and returned to the Reserve once supply conditions return to normal.

In considering this and any future use of the SPR, the Department of Energy is in consultation with major oil producing nations and the International Energy Agency, which represents major consuming countries.

Media contacts:
Mike Waldron, 202/586-4940
Craig Stevens, 202/586-4940

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