President Biden stated Thursday that the U.S. will work with other countries to release oil from its global petroleum reserve in the next days to help curb rising gasoline prices.
Brent Crude, the global benchmark for oil prices, soared above $105 per barrel on Thursday after Russia launched an offensive against Ukraine that hit cities and bases with bombing and airstrikes.
Biden stated that the United States is actively working with other countries to increase collective release from strategic petroleum reserves of major energy-consuming nations. He made these remarks at the White House. “The United States will continue to release additional barrels oil when conditions warrant.”
According to Politico, the U.S. will release anywhere from 30 million to 35 million barrels. This would be done over time according to a source familiar with the matter. The administration is working with foreign governments to coordinate the release, including those from China and Japan.
This would be the second time that Biden has released crude oil from petroleum reserves. In November, Biden ordered a record 50 million barrels of crude oil to be released from the nation’s Strategic Petroleum Reserve. He hopes this will help lower gas prices.
After a 1973-74 oil embargo imposed by Arab members of OPEC on oil, the reserves was established. has been used for several emergency situations, including 2005 when Hurricane Katrina struck and decimated large swathes of the Gulf of Mexico’s oil infrastructure. The Bush administration approved the release of 20.8million barrels of crude oil to U.S.-based producers.
The advocates of releasing barrels from an emergency stockpile argue that this would increase oil supplies, reduce prices at the pump and generate billions of dollars for the federal government. Critics argue that emergency supplies are a temporary solution to a problem, and do not increase oil production capabilities.
Jennifer Granholm, Energy Secretary, has suggested repeatedly that the White House could release more crude oil to counter rising prices at the pump. This would frustrate Americans and drive Biden’s approval ratings lower. According to AAA, a gallon of gasoline cost $3.54 in the US on Thursday. This is up from $2.66 last year.
Biden acknowledged that gasoline prices have risen in the United States and that Americans are feeling the effects. Biden pledged to do everything in his power to reduce the suffering at the gas station.
Biden stated that his administration was using all available tools to protect American families from rising gas prices. “You know what? We’re taking active measures to lower the cost. American oil and natural gas companies shouldn’t use this time to increase their profits by raising prices.
