DOE Makes Oil Reserve Withdrawal Deals

The Energy Department announced agreements with 11 companies, middlemen and brokers to take 30 million barrels of oil from the government’s emergency reserve with deliveries to be completed by the end of November. The 11 bidders agreed to return a like amount of crude, plus a 1.56-million barrel premium, late next year. No money was exchanged. “These companies offered the best value in terms of restocking the strategic reserve a year from now,” said Energy Secretary Bill Richardson. Last month, President Clinton ordered the release of the oil from the federal Strategic Petroleum Reserve. The bidders were: Marathon Ashland Petroleum of Houston, Euell Energy of Aurora, Colo., BP Oil Supply Co. of Warrenville, Ill., Elf Trading Inc. of Houston, Equiva Trading Co. of Houston, Morgan Stanley Dean Witter of New York, Vitol Inc. of Houston, Valero Marketing & Supply Co. of San Antonio, Burhany Energy Enterprises Inc. of Tallahassee, Fla., Lance Stroud Enterprises Inc. of New York and Hess Energy Inc. of New York.