A statement from the White House was released today. United States President Joe Biden will be combatting inflated petrol prices by removing an estimated one hundred eighty million of the [current] five hundred sixty-eight million barrels of oil from the United States Strategic Petroleum Reserve.
Every day for the next six months, one million barrels of oil will be taken from one of the nation’s four oil storage caverns. Presently, the inventory count of oil barrels will not update on the United State’s Office of Fossil Energy and Carbon Management website because of the executive decision made by Biden this morning.
Gas prices in the United States have transversely reflected the conflict in Ukraine for over a month. Sanctions banning Russian oil sent the price of oil elsewhere around the world into a mushroom cloud; prices exploded.
Almost immediately after withdrawing the first million barrels of oil today, prices for petrol across the United States lessened. Little by little, prices are expected to fall and regulate at a more affordable level. You can check the daily average price of gas here from the American Automobile Association (AAA.)
In conjunction with Biden’s plan to approach inflation, “domestic production is expected to increase by one million barrels per day this year and nearly seven hundred thousand barrels per day next year.” This is quoted from the White House briefing, the entire briefing can be accessed here. Congress is calling on the United States’ oil industry to step-up production by paying fees on inactive wells; an incentive to reopen them.
Concerning the oil coming from the Strategic Petroleum Reserve, the White House stated, “After consultation with allies and partners, the president will announce the largest release of oil reserves in history, putting one million additional barrels on the market per day on average, every day, for the next six months.”
As the largest producer of oil in the world, the White House sees this tactic as one that will help pave the way [now more quickly] toward clean energy. Taking such vast quantities from the Strategic Petroleum Reserve is a bold move but it’s also an imperative one in bridging the gap as the crisis in Ukraine continues.
In November of 2021, President Biden pulled an additional fifty million barrels of oil from the Strategic Reserve in an attempt to combat inflation then, before Russia invaded Ukraine and still during the throws of the COVID-19 Pandemic. The President is expected to announce the most recent maneuver later today.