US approves 21 waivers of Jones Act for SPR crude shipments
Washington (Platts)--2Aug2011/502 pm EDT/2102 GMT
US Customs and Border Protection has cleared 21 foreign-flagged oil
tankers to pick up crude from the Strategic Petroleum Reserve, a spokeswoman
One other buyer of stockpiled oil awaits a waiver to the Jones Act, a
maritime law that prohibits foreign vessels from shipping cargo between US
ports. Bidders in the SPR auction need the clearance because they said no
available US-flagged tankers are large enough to carry lots of 500,000
barrels or more.
Customs spokeswoman Joanne Ferreira declined to name the companies that
have applied, as did the Department of Energy.
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Fourteen successful bidders in the SPR auction opted to pick up a total
of 25 million barrels by ship, or about 82% of the 30.64 million barrels put
up for sale. Each could submit multiple waiver requests, as they have to
clear each tanker they plan to use.
Another 5.5 million barrels will flow into pipelines, and the remaining
150,000 barrels will leave the storage salt caverns by barge.
Of the crude destined for tankers, according to DOE, 4 million barrels
will be picked up by Vitol, 3.05 million barrels by Valero Energy, 3 million
barrels by Shell, 2.1 million barrels by ConocoPhillips, 2.08 million barrels
by Plains Marketing, 2 million barrels by Hess, 2 million barrels by Marathon
Petroleum, 1.5 million barrels by JP Morgan, 1.4 million barrels by Sunoco,
1.2 million barrels by Tesoro, 1.1 million barrels by Trafigura, 580,000
barrels by ExxonMobil, 500,000 barrels by Murphy Oil, and 500,000 barrels by
The third-ever presidentially directed SPR release is part of a
coordinated move by the International Energy Agency to tap global reserves to
make up for shortfalls in Libyan supplies caused by the civil war in the
North African country. The US contributed about half of IEA's release of 60
--Meghan Gordon, firstname.lastname@example.org