There is so much wrong with this: 1. The strategic petroleum reserve is for US national emergencies, not to bail the democratic socialist party out of its poor and continuing to be poor energy policies in its war on fossil fuels. 2. The approach offered by oil producers and the American Petroleum institute are far better actions than to resort to socialist policies of price controls set by the federal government in the form of guaranteed contracts rather than the capitalist free market. The strategic petroleum reserve shouldn't be raided for short term political goal of trying not to be wiped out in the November midterms. API letter of recommendations to Joe Biden: Letter-to-President-Biden-on-10-in-2022-Plan (api.org) I'd immediately do 9 of the 10 recommendations. I don't agree with recommendation #6. There is the likelihood that this short-term socialist policy fix will get the middle finger salute from the oil produces and refiners who want longer-term guarantees than the Biden Administration is willing to give them before they make long-term spending and production decisions. Big Oil wants to produce and refine more oil than the Biden Administration is willing to allow. Greatly increased supply = greatly lowered prices. 3. Biden's Executive action signed on March 31, 2022, allows for the sale of 180 million barrels of oil over 6 months, 180 days. Joe Biden releases strategic petroleum reserves - Bing video Notice that the order expires in the weeks before early midterm voting so there really is no way to shield that this is a political decision rather than a national emergency decision. It also does not address the US long-term energy need which requires an all of the above policy which the Biden Administration is not offering. Replenishing the 180-day release of 1 million gallons per day of oil based on the executive order only amounts to 9 days of US daily use of oil. To say this is a band aide on an open wound is an understatement. 4. To make matters worse, this isn't the first time the Biden Administration released from the US Strategic Petroleum Reserve. On November 23, 2021, the Biden Administration released 50 million barrels of oil in a failed attempt to lower gas prices. Given this failed, they shouldn't have doubled down with another 180 million barrels over 6 months which has only marginally been effective: Biden orders release of 50M barrels of oil from strategic reserve in hopes of lowering gas prices - Bing video President Biden Announces Release from the Strategic Petroleum Reserve As Part of Ongoing Efforts to Lower Prices and Address Lack of Supply Around the World | The White House 5. When this fiasco of raiding the US Strategic Petroleum Reserve is complete in early October, the Biden Administration will have reduced the strategic reserve by 230 million barrels, not 180 million. All of this just to try to win elections. After the elections are over, prices will rise again to even higher levels because the Biden Administration is only concerned with staying in power and are unwilling to include fossil fuels in long-term plans for US energy. 6. Joe Biden is taking credit for lowering the price of gas while the method he uses is to be condemned. A proposed socialist policy fix is far from a good long-term capitalist solution. Bottom line, the Biden Administration cares for power alone and doesn't care how much pain they cause the American people. Given the overall level of inflation and recession, they obviously believe the American people are gullible and stupid for them to think a .40 cent per gallon reduction at the pump is going to change large blocks of votes. The Price Impact of the Strategic Petroleum Reserve Release | U.S. Department of the Treasury FACT SHEET: Department of Energy Releases New Notice of Sale as Gasoline Prices Continue to Fall | The White House Consumer sentiment here at the end of July remains historically low so there is that going for how the American people feel. This sums up the Biden Administration, nothing has changes since early November and nothing long-term good is likely to change with this administration. Warning Alert! Pain Ahead!: Energy Secretary Jennifer Granholm Laughs When Asked About Biden’s Plans To Lower Gas Prices - YouTube It's all OPEC's fault even though the US has the largest deposits of gas and oil in the world. We have plenty of coal too. No! It's Russia's fault for invading Ukraine. No! It's the greedy capitalist Big Oil Companies. No! It's the greedy small business gas station owners. See the trend here? It's everybody's fault except the Biden Administration which is where the sole fault belongs.
China, India, and the Netherlands. Selling to China should be an impeachable offense. Given that it is from the US Strategic Oil Reserve, none of it should have gone overseas, none.
Poster wasted a lot of words since America is near 95% refining capacity. Perhaps a snap of fingers will create new refineries. Note that apparently it's Biden fault that the last American oil refinery was built in 1976. SMH
I'd cut and paste this for you, but don't want to break the board rules: A Promise Kept: Biden’s War on American Energy On September 9, 2019, then-candidate Joe Biden made a clear and unequivocal promise: I want you to just take a look. I want you to look into my eyes. I guarantee you; I guarantee you, we are going to end fossil fuel, and I am not going to cooperate with them.” At the Republican Study Committee, we hoped Biden was bluffing. After all, he made all kinds of crazy promises on the campaign trail. But we decided to take a closer look. Biden promised a War on Energy. 15 months into his presidency, gas prices reached an all-time high. Is that because Joe Biden actually kept a promise? I had my staff do a deep dive, and the results are startling. President Biden has waged an unprecedent, government-wide assault on our nation’s ability to produce cheap, reliable energy. Below is a list of the Biden administration’s anti-energy actions, side-by-side with the average price Americans paid at the pump that week. Do you notice a trend? Here’s a comprehensive breakdown of Biden’s fight to “end fossil fuels,” and its costs for American consumers: a_promise_kept.pdf (house.gov) Just hold your nose while you read it. There are none so blind as those who will not see. You know who you are..........
Hilarious that some complain about high gas prices that are set by the market, not the President, and demand more oil be pumped. Oil companies sit on thousands of leases refusing to drill, so in order to help the people the President releases oil from the reserves. The President then tries to negotiate with world oil producers to pump more oil, but the complainers don’t like who he’s negotiating with so they complain about that. The price of fuel started dropping for 24 straight days as a result of the President’s efforts, so now the complainers are saying he shouldn’t be taking oil from the reserves because it’s only supposed to be used for emergencies. As coleg said the last refinery was built in the mid-70’s and are refining at near full capacity so the problem isn’t about the amount of oil being pumped, it’s about the greed and the connection between big oil and the party of complainers.
What difference does that make? Oil is a global commodity. If market demand is exceeded by supply, price goes down. And if they follow thru with long dated purchase contracts to replace the SPR reserves, domestic oil companies will have certainty to invest in more domestic production
Companies aren't investing billions in new oil field development with the uncertainty of demand.. cant tell someone you are going to regulate them out of business and then ask them to make major long term investment in the business. What Biden proposes to purchase future production encourages investment in domestic production industry
We are producing more oil than 2018, consuming the same amount of oil and prices are higher cuz opec is producing less than 2018. What’s your plan?
True but while the number of refineries has been cut in half since then, upgrades to existing refineries mean capacity is only down 10% in the last 45 years. While consumption of gas is up 45%. No New Refineries in 29 Years? There Might Well Be a Reason (Published 2005)
So a lobbyist assoc. for oil/gas has a wishlist. Color me surprised. And it 's not focused even slightly on getting the US away from fossil fuels. Another shocker. Of course it was only 7 years ago they got caught... " In February 2015, it was revealed that climate skeptic Willie Soon had been paid by several fossil fuel interest groups. Over the course of 14 years, he had received a total of $1.25m from Exxon Mobil, Southern Company, the American Petroleum Institute (API) and a foundation run by the ultra-conservative Koch brothers, the documents obtained by Greenpeace show. The scientist described his studies to fossil fuel executives as "deliverables", and permitted anonymous pre-publication reviews. Soon advanced the widely discredited theory that changes in solar activity are to blame for climate change, and called into question the severity and extent of climate change in all his studies, never revealing his backers." Yeah, we can trust these guys to give us the BEST solutions. OMG
It isn't for political gains, it is to dampen the hysteria induced spike in oil and gas which is driving inflation. Supplying the demand to soften the spike while entering into mong dated contracts (3-10 years) with companies to drill on those leases was the right thing to do. It softens the spike and encourages a strong domestic oil production industry. With our current oil production capacity, we are not nearly as dependent on the SPR as we were when it was established.
So trying to bring down the price of gas, and thus bring down inflation is a political thing? Is the Fed raising interest rates a political thing too? You view any action taken to try to help the American people as political? Party before country.
BS. Oil is a US commodity when produced in the US. None of the strategic petroleum should have been sold overseas. The release was to help the American people, not foreign countries and certainly not China. Biden should be impeached for this, among many other things.
Really? You apparently are one of those I mentioned above who are so blind and will not see. Thanks for so well identifying yourself.
Well, except when financial analysts want to recommend investments based on a criteria you don't like. Then trust the government to tell them they can't!
There are a lot of things that could be done to lower gas prices, encourage more drilling, green lighting refineries to get built or upgraded, etc. No, every action is not political. And the FED is independent by definition, so it is not political either. It is the strategic petroleum reserve, it is there for emergencies. Remember when OPEC cut the US off from oil back in the 70's, that was an emergency. What would happen if they did that now? Where is the SPR then, sold to China?
So OPEC not selling oil to the US is an emergency but a reduction in global oil supply due to a war and resulting sanctions and a simultaneous increase in demand is not?
