- President Joe Biden will make 15 million more oil barrels available from the country’s reserve to lower gas prices.
- After the invasion of Ukraine, around 165 million barrels have been released by the Biden administration.
- Biden also encouraged oil companies to invest more in production and not just their stocks.
Wednesday’s announcement from President Joe Biden that the federal government will once more step in to supply oil on the marketplace was made by Joe Biden. Gas prices still high.
This will be achieved by the 15 million barrels of oil from the country’s Strategic Petroleum Reserve. (SPR) is part of a 180-barrel initiative the Biden administration began in May to reduce pump prices. The program will be extended through the end.
Gas prices affect almost all families in the country, and they can squeeze family budgets. Biden stated that when gas prices rise, other expenses are cut.” “That’s why, since Putin’s invasion in Ukraine caused gas prices to soar and rattle the international oil markets, I have been trying to do everything I can to decrease them.”
About 165 million barrels had been released by the White House as part of this program. Tuesday’s release represents the final phase of the multimonth-long plan.
He also criticized oil companies for their theft larger profitsInstead of helping consumers to lower their prices, they are lowering them. Profits from the six largest US oil companies topped $70 billion during the second quarter. A large portion of this windfall was used to buy back shares that helped boost their stock prices.
Although crude oil prices have declined significantly since the peak in summer, the president said that firms still value margins more than easing Americans’ pain at pump.
“That’s great if you own a lot of stock in oil company or if you’re an executive at an oil company — puts a lot of money in your pocket,” Biden said. That is how you get paid. It’s not the case, however, for most Americans.
The SPR acts as an emergency oil reserve for the US and can store more 700 million barrels of crude oil spread across its four underground facilities. In the week ended October 7, it held just over 408,000,000 barrels. This is a continuation of a decline under President Donald Trump. It has only increased as Biden seeks to offset rising energy costs.
The president stated that the US would “replenish the stockpile” if crude oil prices drop to $70 per barrel. West Texas Intermediate crudeWednesday’s barrel prices were at $86 per barrel, slightly higher than Monday’s but still significantly lower than the June peak of almost $120.
Biden stated Wednesday that the administration’s plan of buying crude oil when it is cheaper “means oil firms can invest now to boost production with confidence they will be able to sell to us at that price later on in the future.”
“Refilling our reserve at $70 a barrel is a good deal for companies. It’s also a good cost for taxpayers. And it’s critical for our national security,” he said.
Replenishing SPR should give security to oil companies that are sitting on huge profits. According to the president, removing this uncertainty will allow companies to invest in more production and not just enrich investors.
Biden stated, “My message for American energy companies is that you should not use your profits to purchase back stock or to pay dividends.” “Not now, and not while war is raging.”
