§ 626.4 - General acquisition strategy.

§ 626.4 General acquisition strategy.

(a) Criteria for commencing acquisition. To reduce the potential for negative impacts from market participation, DOE shall review consider the following factors prior to commencing acquisition of petroleum products for the SPR:

(1) The current inventory of the SPR;

(2) The current level of private inventories;

(3) Days of net import protection;

(4) Current price levels for crude oil petroleum products and related commodities, the ability to minimize costs and avoid incurring excessive costs in acquisition, and the possible effect on consumer and market prices of any SPR acquisition;

(5) The outlook for international and domestic production levels;

(6) Existing or potential disruptions in supply or refining capability;

(7) The level of market volatility;

(8) Futures market price differentials for crude oil petroleum products and related commodities; and

(9) The need to protect national security; and

(10) Any other factor the

consideration of which the

Secretary deems

to be

necessary or appropriate to consider.

(b) Review of rate of acquisition. DOE shall review the appropriate rate of oil petroleum product acquisition each time an open market acquisition has been suspended for more than three months, and every six months in the case of ongoing or suspended royalty-in-kind transfers.

(c) Acquisition through other Federal agencies. DOE may enter into arrangements with another Federal agency for that agency to acquire oil petroleum products for the SPR on behalf of DOE.