In order to ease the oil supply crisis and cut gas prices, which have grown to be a major domestic worry ahead of the November midterm elections, President Joe Biden outlined a number of measures on Wednesday.
Biden acknowledged that 15 million barrels of the country’s Strategic Petroleum Reserve inventory were released in December.
From the Roosevelt Room, Biden declared, “With my announcement today, we’re going to continue to stabilize markets and cut prices at a time when the actions of other countries have generated so much instability.
Administration officials earlier informed reporters that this is not a new tranche but rather the last 15 million barrels of the 180 million Biden promised to transfer over a six-month period this spring.
On Wednesday, Biden also stated that the government is going to buy oil to rebuild the strategic reserve once crude falls below $70 per barrel, which is an extraordinary measure. According to officials, this action aims to encourage domestic oil production by sending a clear signal to the market.
In order to accomplish this, Biden also targeted oil firms on Wednesday, accusing them, as he has in the past, of price gouging during a period of record profits.
In comments made to energy corporations, Biden remarked, “You shouldn’t be utilizing your profits for dividends or stock buybacks.” “Not just now, not when a war is in progress. You ought to enhance manufacturing and refining with these astounding revenues. For the benefit of American citizens, invest in America. Reduce the price you list at the pump to reflect the product’s true cost.
Oil executives have already gone before Congress to address concerns about their prices, but they have maintained that these variables, such as supply and demand, are the driving factors behind these prices. Biden has frequently called for an increase in production, but the oil industry and other energy analysts have consistently rebuffed him, claiming that other variables are at work and that it is not that simple or quick to increase production.
Although gas prices have started to decline in recent weeks, the national average for a gallon of gas is still 20 cents more expensive than it was a month ago, according to AAA. Gas prices are also 56 cents higher than they were a year ago, despite having decreased from their summer high of more than $5 per gallon.
But they aren’t falling quickly enough, Biden admitted on Wednesday. Families are suffering,
While continuing to blame Russian President Vladimir Putin’s invasion of Ukraine and “other actors in the market” for the rising costs this fall, the Biden administration claimed some progress in cutting prices over the summer.
Republicans have been harshly critical of Biden’s handling of economic issues for months as a result of the high cost of petrol and overall high inflation.
The 15 million additional barrels of oil won’t be released until December, and the midterm elections are just around the corner, but according to administration officials, Biden is making the announcement now because standard Department of Energy procedure calls for notification of the release a month and a half in advance.
When questioned by a reporter on Wednesday, Biden denied the action was politically driven — to support Democrats before the November elections.
In response, Biden said, “I’m motivated to make sure that I continue to press on what I’ve been working on, which is making sure there is enough oil that has been pumped by the corporations, so that we have the potential to be able to create the gas that we need here at home.
According to officials, additional measures to address the oil supply may include certain restrictions on oil companies’ exports to other markets. According to the officials, the administration hasn’t completely ruled out making subsequent releases from the U.S. reserve. A decision regarding a January release will be made in November.
One official told reporters, “We’re keeping all options open, anything that can help maintain stable domestic supply.”
