Our National Strategic Petroleum Reserve (SPR) is dangerously low. Newly released statistics show that our national oil emergency stockpile, which is designed to protect the United States from unexpected and severe supply disruptions, has reached another historic low. This is a dangerous moment for the United States, and worse, he has hurt himself. With these facts in mind, new reports indicate that the Biden administration plans to sell oil from the Strategic Petroleum Reserve to lower fuel prices, which was the focus of voters in last week’s midterm elections. According to new data According to the Energy Information Administration, our oil reserves have fallen to just 396 million barrels. The sharp drop, reaching its lowest level since April 1984, was not due to natural disasters, trade embargoes or natural disasters, but to politics.
Congress established the SPR following OPEC’s decision in 1973 to end oil trade with the United States. This situation has demonstrated the vulnerability of over-reliance on foreign producers to meet our energy needs. As a result, President Ford signed the Energy Policy and Energy Conservation Act, which permitted the federal government to hold up to 1 billion barrels and disperse as needed in cases of “serious power outages.”
President Biden has used SPR, historically used after natural disasters such as Hurricane Katrina or during war, as his personal political tool. Knowing that high oil and gasoline prices could become a political burden for his party in the November midterm elections, President Biden is pulling out of the SPR to keep prices artificially low. Since taking office in January 2021, President Biden has leaked 230 million barrels of oil. This is the sharpest drop in the reserves of any president in US history.
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Even the need to use the SPR is a recognition of the President’s hostile oil policy and how it has contributed to the imbalance between supply and demand. This imbalance caused volatility in the oil markets, leading to record high gasoline prices in the summer.
This disturbing reality could have been avoided if President Biden had prioritized America’s energy production, especially crude oil and natural gas. Instead, his administration is championing a pernicious oil and gas policy that has handcuffed the energy sector. He canceled construction of the Keystone XL pipeline, halted new drilling on federal lands, imposed regulatory restrictions and increased taxes on energy companies.
Moving forward, if the SPR is too depleted, we must have viable options to effectively respond to natural disasters and wartime. Expanding American energy production without depleting our own emergency supplies is a long-term solution to stabilize gas station prices and protect national security. However, oil production is much less than before the pandemic. In 2019, the US Energy Information Administration estimated that we were producing approximately 12.3 million barrels per day, but in 2021 we produced approximately one million barrels per day. less barrels than at that time.
Despite the ongoing energy crisis and the fact that gas prices are starting to climb back up to an average of $4 a gallon, this president is unwilling to encourage American producers to increase oil production. The White House and the Department of Energy have signaled that all price stabilization options are being considered, and now they are back to using the SPR again. In mid-October, the Biden administration announced it will take another 15 million barrels over the next few weeks to cut prices ahead of the midterms.
Now, almost 50 years after the OPEC decision spurred the creation of the SPR, the US is once again facing the consequences of allowing our energy supplies to depend on the OPEC cartel. In October, OPEC+ announced its intention to cut oil production by 2 million barrels of oil per day. This massive reduction will have serious consequences for Americans – further pushing up high energy costs. President Biden is running out of ineffective decisions now that he has dropped the SPR to dangerous lows. Instead of using our powerful resources at home, President Biden is seeking answers abroad and even in hostile countries. In fact, recent reports have shown that the White House is in talks with Venezuela.
High gas prices are a real national problem and steps need to be taken to reduce the cost of energy for Americans. But playing politics with a national security asset is not the way to solve the problem.
We need a real long-term strategy to keep energy prices affordable and fully replenish our country’s oil reserves. We can achieve this by building more pipelines, reducing regulatory burdens, reforming our permitting laws, and supporting energy producers.
From Zerohedge via RealClearEnergy.org
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