Jefferson Co. oil storage site on Stategic Petrolem Reserve’s list
By Business Journal Staff
The U.S. Department of Energy (DOE) announced May 11 the contract awards for the exchange of approximately 53.3 million barrels of crude from the Strategic Petroleum Reserve’s (SPR) Big Hill, Bayou Choctaw, Bryan Mound and West Hackberry sites.
The announcement marks the next phase of DOE’s execution of the United States’ 172-million-barrel (mbbl) contribution to the International Energy Agency’s collective action to stabilize global oil supplies. It follows DOE’s Request for Proposal (RFP) issued at the end of April. Deliveries will begin immediately as the Department continues to move swiftly to address short-term supply disruptions and strengthen U.S. energy security.
Big Hill is located in Jefferson County, roughly 26 miles from Beaumont. The oil storage site was obtained in stages during 1982 and 1983, with operations commencing in 1991. It includes 14 caverns with a total authorised capacity of 170mbbl.
The Bayou Choctaw facility is situated in Iberville Parish, Louisiana, around 12 miles south-west of Baton Rouge. Acquired in April 1977 and operational from 1987, it contains six caverns and can store up to 76mbbl.
Meanwhile, Bryan Mound is located in Brazoria County, close to Freeport, and was acquired in April 1977. Operations began in 1986 and the site features 19 caverns with storage permission for up to 247.1mbbl.
West Hackberry lies in Cameron Parish, Louisiana, 25 miles from Lake Charles. The site dates back to April 1977 and was opened in 1988. It now hosts 21 caverns with an authorised limit of 220.4mbbl.
“With the announcement of contract awards, we are advancing the President’s commitment to carrying out this historic emergency exchange,” said DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office Kyle Haustveit. “These actions continue to move oil swiftly into the market, address near-term supply needs, and ensure that the Strategic Petroleum Reserve remains strong through the return of premium barrels.”
Under President Donald Trump’s leadership, the DOE reportedly has executed a historic, record-speed series of SPR exchange solicitations — the largest in the Reserve’s 50-year history — moving critical crude oil supplies quickly to market to address short-term disruptions.
DOE noted President Donald Trump and Secretary Chris Wright are managing the SPR as the critical national security asset it was designed to be, helping stabilize oil markets, protect Americans from supply disruptions, and strengthen energy security at home and abroad. To date, approximately 35 million barrels have been delivered to the market, while President Trump’s historic effort has generated approximately 35 million barrels of additional volume for the SPR at no additional cost to taxpayers.
With these awards, DOE will move forward with an exchange of more than 53.3 million barrels of crude oil, while securing an approximately 28% return premium — representing 15.1 million barrels. The action builds on earlier exchange actions, which have already awarded 80 million barrels from the Bayou Choctaw, Bryan Mound, and West Hackberry sites, demonstrating the reserve’s capacity to deliver crude oil with speed and precision under emergency conditions. The exchange also allows participating companies to leverage the president’s limited Jones Act waiver, helping accelerate critical near-term oil flows into the market.
Companies may begin scheduling deliveries immediately.
