Biden to release up to 180 million barrels of oil from reserve to drive down gas prices
WASHINGTON – President Joe Biden has ordered the release of up to 180 million barrels of oil from the nation’s emergency reserves over the next six months in a bid to provide relief to Americans from gas prices that have soared since Russia’s invasion of Ukraine.
Biden’s order, announced Thursday, calls for the release of 1 million barrels of oil per day over the next six months from the Strategic Petroleum Reserve. The action will represent the largest release from the reserve in its nearly 50-year history.
“This is a moment of consequence and peril for the world and pain at the pump for American families,” Biden said.
Gas prices at the pump have jumped by nearly $1 per gallon in the month since Russia’s invasion of Ukraine and now average $4.20 per gallon, with even higher prices in some areas. The war means less Russian oil is getting to the market, and the reduction in supply is raising prices at the pump.
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Biden predicted that releasing oil from the strategic reserves would cause gas prices to drop, “but how far down, I don’t think anyone can tell,” he said.
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Biden’s decision to release oil from the strategic reserves is the third time in four months that he has tapped into the emergency stockpile.
In November, Biden ordered the release of 50 million barrels of oil from the nation’s emergency stockpile to lower energy costs amid a spike in gas prices and soaring inflation. Earlier this month, he released another 30 million barrels from the stockpile.
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Biden promotes domestic oil production
Meanwhile, to encourage U.S. companies to ramp up domestic production, Biden also is proposing a “use it or lose it” policy for companies to produce more oil with the resources they already have. Right now, the oil and gas industry is sitting on more than 9,000 approved but unused permits for production on federal lands.
Biden called for Congress to force companies to pay fees on wells from leases that they haven’t used in years. Companies that are producing from leased acres and existing wells won’t be subject to the fees. But companies that continue to sit on nonproducing acres will have to choose whether to start producing or pay a fee.
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Michael Collins covers the White House. Follow him on Twitter @mcollinsNEWS.