President Biden has announced the federal government will release one million barrels per day from the nation's Strategic Petroleum Reserve (SPR) for the next six months.
The unprecedented move is an attempt to drive down gas prices that have skyrocketed since Russia invaded Ukraine.
The administration will also pressure oil companies to increase the domestic oil supply.
WATCH:
Per CNBC:
“The scale of this release is unprecedented: the world has never had a release of oil reserves at this 1 million per day rate for this length of time,” the White House said in a release. “This record release will provide a historic amount of supply to serve as bridge until the end of the year when domestic production ramps up.”
Rising gas prices has left Democrats, already bracing for a difficult election, scrambling, as CNN reports:
Last week, California Democratic Gov. Gavin Newsom rolled out a $9 billion proposal to hand out $400 debit cards to drivers in the state to help soften the impact of the highest gas prices in the country. In Georgia, Republican Gov. Brian Kemp — who is facing one of the toughest reelection races in the country — signed a bill that will give $250 to $500 tax refunds to Georgians — a move several of his rivals blasted as election-year politicking. And as Democratic Gov. Janet Mills faces a competitive reelection campaign in Maine, she has proposed some of the most generous relief to qualified taxpayers in her state — in the form of $850 checks — to cushion the blow of inflation and gas prices.
But only the president of the United States can order the release of the strategic oil reserve. As an insurance policy against a severe energy supply crisis, there are limitations on its use.
Many experts believe it is not only shortsighted to tap the 600+ million barrel petroleum reserve and attempt to shift blame to oil companies — but that it won't save Democrats come Election Day 2022.
The Heritage Foundation notes:
Rather than relieve regulatory roadblocks to affordable energy—such as lifting the Jones Act and the ethanol mandate—Biden has used his bully pulpit from Day One to vilify the oil industry. He has aggressively deployed regulators across the executive branch to make it more difficult to explore for and produce oil, construct and operate pipelines, access financing and private sector investment, and use gasoline in cars and trucks.
Biden made a political example of the Keystone XL pipeline and has so far failed to show leadership (as his counterpart in Canada has done) to defend existing pipeline infrastructure serving American families in the Midwest.
This move by Biden is stupid and totally a political move for which we hope does NOT create future problems if Putin decides to challenge him. The “Strategic Oil Reserve” was put in place to cover a real crisis, such as a world war!! How is Biden going to replace this and at what price.
Trump put this in place when oil was at $40 per barrel and now we are at $120 per barrel!! Biden again is on the wrong side of sane policy for the U.S. This additional oil should be created by bringing in oil from Canada and Mexico as well as policies that encourage U.S. production of both oil and gas!!
Glen, I believe you are totally right but this guy running our country needs to stop before it’s too late to retrieve, he thinks it’s a good thing to give up our reserve to cover his mistakes. Sad in the USA Bob
Totally a stupid move taking oil from our reserves, as has been stated, it’s there for extreme emergencies
This isn’t one of them
Giving out checks or talking about getting rid of the gas tax or having a tax free tax day is equally wrong
Another reason the idiots in DC shouldn’t be running anything
What is this insanity? This is only a stop gap stop solution which will only temporarily change the price of gas. If it changes it at all. This reserve is for emergency. What will be used if the US goes to war with Russia. Did we forget about China and Taiwan? The United States should be preparing for possible aggression.
A desperate act by a desperate President. Neither he nor his cabinet understand that what they are doing is not solving the problem. The commenters here have laid out the facts having to do with the “Reserve”! This administration is out of ideas and are desperate to show some result. After crippling our oil industry they are grasping at straws and pulling our national readiness into the abyss in which they dwell!
Stupid ass Biden get the hell out of our government and our oil producers back produceing oil & gas just as fast as possiable. Donald J Trump had America surpluss on the go we were engery independed now along comes sleepy Joe and the Democratic party leaders and then shut down our oil supplies all for Russia & China. When this boob get elected first thing he shut this industry down & alowed Russia to propel their gas & oil. Hows that for America last?