Biden Economy & Business Government Politics

Biden Taps Oil Reserves Again, To Drop Gas Prices!

President Joe Biden is ready to release more oil from the nation’s strategic reserves if gas prices surge during the summer. This move is the latest attempt by the Biden administration to tackle rising prices at the pump and combat inflation. However, this short-term solution does not address the underlying issues causing high energy costs, such as restrictive energy policies and overregulation.

A Biden administration energy adviser acknowledged that gas prices are “still too high” for many Americans and expressed support for measures to reduce them further. Special Presidential Coordinator for Global Infrastructure and Energy Security, Amos Hochstein, told the Financial Times, “We will do everything we can to make sure that the market is supplied well enough to ensure as low [a] price as possible for American consumers. I think that we have enough in the SPR if it’s necessary.” While this sounds reassuring, it’s clear that the administration is using emergency reserves as a band-aid rather than implementing long-term solutions like increasing domestic oil production.

Hochstein’s comments come shortly after the administration sold one million barrels of gasoline from the Northeast Gasoline Supply Reserve on May 21, just days before Memorial Day. The Department of Energy claimed the sale was “strategically timed and structured to maximize its impact on gasoline prices, helping to lower prices at the pump as Americans hit the road this summer.” This move might provide temporary relief, but it’s not a sustainable strategy for energy independence.

Although Biden’s tactic of releasing oil reserves has led to a drop in gas prices from $3.598 per gallon on May 21 to $3.447 on June 16, the overall approach reveals a lack of foresight. The administration boasts of these short-term gains while ignoring the fact that gas prices are still higher than they were during the Trump administration. In January 2021, the average cost of a gallon of regular gas was $2.334, illustrating that Biden’s policies have yet to return prices to their previous levels.

Secretary of Energy Jennifer Granholm stated in May that the administration is “laser-focused on lowering prices at the pump for American families, especially as drivers hit the road for summer driving season.” She emphasized that by releasing reserves between Memorial Day and July 4, the administration aimed to ensure sufficient supply for the Northeast. However, Biden has depleted the nation’s strategic reserves more than any president before him, raising concerns about what will happen if a genuine emergency arises.

The fundamental issue remains that the Biden administration’s energy policies have created a hostile environment for domestic energy production. While releasing oil from reserves may provide temporary relief, it is not a substitute for a robust energy policy that prioritizes American energy independence. Instead of relying on emergency measures, the administration should focus on removing barriers to domestic oil and gas production to ensure long-term stability and affordability for American consumers.

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