U.S. President Joe Biden’s administration is weighing the need for further releases of crude oil from the nation’s emergency stockpiles after the current program ends in October, Energy Secretary Jennifer Granholm told Reuters on Thursday.
A Department Of Energy official later said the White House was not considering new releases from the U.S. Strategic Petroleum Reserve (SPR) at this time beyond the 180 million barrels that the president announced months ago.
The Biden administration this year has delivered about 1 million barrels of oil per day from SPR stockpiles to lower fuel prices and pare energy inflation ahead of the midterm elections in November.
The releases so far this year have helped knock average U.S. retail gasoline prices down to $3.75 a gallon this week from $5 a gallon in June. But they also have cut U.S. emergency stocks to below 450 million barrels, lowest since 1984.
[This is clearly a temporary fix as Democrats in power destroy our fossil fuel industry. It looks good for the election. Notice that he only approved the releases through October.]
On Monday, OPEC and its allies, led by Russia, agreed to a small oil production cut to raise prices. The US solution isn’t to drill or frack; it’s to use our emergency stockpiles.
Biden has put us at the mercy of our enemies instead of drilling our own.
It is “a little early to say that there is going to be more SPR releases,” said Abhiram Rajendran, head of global oil at Energy Intelligence. “But if OPEC starts getting aggressive on cutting supply, that’s a possibility.”
The nation’s crude stocks have been declining since mid-2020 due to sales from congressional mandates and Biden’s price initiative, says Reuters.
[That’s not exactly true. It’s a problem since Biden and Democrats canceled leases on public lands, eliminated new pipelines, discouraged investors in fossil fuels, regulated oil and gas into oblivion, and continue to do so.]
Granholm also said during a visit to Houston on Thursday that the administration and allies are still discussing a cap on prices for Russian oil purchases. A price cap would restrict revenues available to Russia amid its invasion of Ukraine.
[And Russia won’t allow any gas or oil to Europe. Great idea geniuses. Their stockpiles won’t last.]
After the midterms every contact I have thinks that gas prices will again rise to unknown heights.
At 1 Million Barrels per day the SPR isn’t big enough to take us to the November 2024 Elections since the SPR will run dry in less than 18 months at this rate.