Naval petroleum reserves: Oil sales procedures and prices at Elk Hills, April through December 1986

Technical Report · Thu Jan 01 04:00:00 EST 1987

OSTI ID:5910044

The Elk Hills Naval Petroleum Reserve is located near Bakersfield, California and ranks seventh among domestic producing oil fields. In Feb. 1986 the Department of Energy awarded contracts to 16 companies for the sale of about 82,000 barrels per day of NPR crude oil between April and September 1986. These companies bid a record high average discount of $4.49 from DOE's base price. The discounts ranged from $0.87 to $6.98 per barrel. These contracts resulted in DOE selling Elk Hills oil as low as $3.91 per barrel. Energy stated that the process for selling from NPR had gotten out of step with today's marketplace. Doe subsequently revised its sales procedures which requires bidders to submit a specific price for the oil rather than a discount to a base price. DOE also initiated other efforts designed to avoid future NPR oil sales at less than fair market value.

• Research Organization: General Accounting Office, Washington, DC (USA)
• OSTI ID: 5910044
• Report Number(s): GAO/RCED-87-75FS
• Country of Publication: United States
• Language: English

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BUSINESS
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DOCUMENT TYPES
ECONOMICS
GEOLOGIC DEPOSITS
INDUSTRY
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MINERAL RESOURCES
NAVAL PETROLEUM RESERVE
PETROLEUM DEPOSITS
PETROLEUM INDUSTRY
PRICES
RESERVES
RESOURCES
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