How will the acquisition procedures ensure that oil is acquired “without incurring excessive cost or appreciably affecting the market price of petroleum products to consumers”?
Should DOE need to acquire oil in the future (due to either replacement of current stock or expansion), DOE will strive to avoid incurring excessive cost or appreciably affecting the price of petroleum products to consumers by analyzing market activity for crude oil and related commodities and prices of oil for delivery in future months, as well as the perceived availability of near term and forward supplies. In doing so, DOE will consider the current level of the SPR and private inventories; national and regional import dependency; the outlook for international and domestic production levels; oil acquisition by other stockpiling entities; the extent to which the SPR fill rate and prices paid will impact supply availability and prices in the marketplace; incipient disruptions of supply or refining capability; the level of market volatility; the demand and supply elasticity to price changes; logistics and economics of petroleum movement; and any other considerations that may be pertinen
