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BumRushDaShow

(147,086 posts)
Thu Mar 31, 2022, 10:34 AM Mar 2022

Biden announces historic oil reserve release, along with other steps, to reduce gas prices [View all]

Source: CNN

(CNN)President Joe Biden is announcing an unprecedented release of oil from US reserves and taking steps to punish oil companies for not increasing production from unused leases on federal land, the White House says. The steps are an attempt to reduce gas prices while also putting an onus on oil companies to increase supply. The dramatic step confronts what has become a looming political problem months ahead of the midterm elections.

"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," the White House said. "The scale of this release is unprecedented: The world has never had a release of oil reserves at this 1 million per day rate for this length of time. This record release will provide a historic amount of supply to serve as bridge until the end of the year when domestic production ramps up."

The release would amount to 180 million barrels of oil. Biden earlier in the month announced a coordinated release of oil from the reserves in conjunction with other nations. He also released around 60 million barrels in November, which he said at the time was the largest release from the reserve in US history. Neither move had a significant effect on gas prices, which have continued to rise as global limits on Russian energy exports have caused prices to spike.

The United States consumes around 20 million barrels of oil per day, with global consumption hovering around 100 million barrels. Biden's planned releases would put more oil on the global market, potentially bringing down costs.The President is also calling on Congress to "make companies pay fees on wells from their leases that they haven't used in years and on acres of public lands that they are hoarding without producing." For months, the Biden administration has publicly pushed back on the idea that regulations are holding oil producers back from more domestic production, pointing to millions of acres worth of land with approved permits for oil and gas production.

Read more: https://www.cnn.com/2022/03/30/politics/strategic-petroleum-reserve-release-oil-joe-biden/index.html



As a note - back in 2020 when Saudi and Russia were in their oil production/price war - both trying to spite each other and take out the fracking here, the U.S. was snapping up the cheap oil and filling the reserves. At one point (and I have posted this before), oil dropped down to almost -$40/bbl -

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That's unfortunate Effete Snob Mar 2022 #1
We'll be fine. We have around 600 million barrels in reserve... SKKY Mar 2022 #2
Yup BumRushDaShow Mar 2022 #3
Unfortunate?? Bengus81 Mar 2022 #5
yes Effete Snob Mar 2022 #11
This is about National Security in a way. The republican oil companies are price gouging Americans rockfordfile Mar 2022 #19
From their own web site Bengus81 Mar 2022 #21
Oil down over 7.00 per barrel today--mostly after Biden spoke and not a drop has left the SR Bengus81 Mar 2022 #22
Price controls would be much more appropriate. These companies have US corporate charters. mjvpi Mar 2022 #9
Price controls would be much more appropriate. These companies have US corporate charters. mjvpi Mar 2022 #12
when are we going to go after the greedy oil mafia and put the screws to the ceos AllaN01Bear Mar 2022 #4
See below BumRushDaShow Mar 2022 #6
A Hearing?!?! 3825-87867 Mar 2022 #7
You must not be a CSPAN junky BumRushDaShow Mar 2022 #8
And too many Bills never come to pass and be enacted. 3825-87867 Mar 2022 #14
Correct BumRushDaShow Mar 2022 #16
I'm in the midwest and the pump price here hasn't dropped CENT Bengus81 Mar 2022 #10
Note that some states/counties/localities BumRushDaShow Mar 2022 #17
Who is the CEO? NeoConsSuck Mar 2022 #13
He was being nice! 3825-87867 Mar 2022 #15
Just found who said that BumRushDaShow Mar 2022 #18
Good darosky Mar 2022 #20
America uses a massive 20 million barrels of oil a day, so this 180M release will last, 9 days? Shanti Shanti Shanti Mar 2022 #23
It's not all at once BumRushDaShow Mar 2022 #24
Oil prices--WTI are down 31.00 since a couple of weeks ago yet no drop at the pump Bengus81 Apr 2022 #25
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