WASHINGTON (Michigan News Source) – President Biden announced on Wednesday some of his plans for relief at the gas pump, primarily by releasing 15 million more barrels of oil from the United States’ Strategic Petroleum Reserve (SPR). Doing so would make it the lowest level it has been since 1984.
The announcement comes three weeks until the midterms and after Biden has been campaigning for Democratic candidates across the country. Despite GOP claims that the oil release is strategic for political appeal, Biden denied these claims.
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“It’s motivated to make sure that I continue to push on what I’ve been pushing on, and that is making sure there’s enough oil that’s being pumped by the companies,” Biden said in remarks from the White House on energy policy according to the Washington Post.
Biden’s administration has been committed to increasing green and renewable energy, though he has recently admitted his frustration with gas prices not falling fast enough.
AAA reports that gas is averaging $4.14 a gallon currently in Michigan. Which is nearly 13 cents lower than last week, but roughly 84 cents higher than the price of gas a year ago. Despite prices soaring going into the summer and during June, Gov. Whitmer vetoed Republican legislation that promised to suspend Michigan’s gas tax to relieve Michiganders of exorbitant gas prices for six months. The bill would not have taken effect until 2023.
Rather, Whitmer supported President Biden’s call for a three month gas tax holiday from Congress, that would have relieved Michiganders of approximately 50 cents a gallon when combined with a temporary suspension of the state sales tax on gas. The federal tax holiday never passed the house.
The global supply of oil is on the decline, showing that domestic firms would produce 270,000 fewer barrels a day in 2023 than was forecast in September. Global production would be 600,000 barrels a day lower than forecast in September according to Detroit News.
“The President is announcing that the Administration intends to repurchase crude oil for the SPR when prices are at or below about $67-$72 per barrel, adding to global demand when prices are around that range. As part of its commitment to ensure replenishment of the SPR, the DOE is finalizing a rule that will allow it to enter fixed price contracts through a competitive bid process for product delivered at a future date,” a White House Press Release indicated.
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The 15 million-barrel release would not cover even one full day’s use of oil in the U.S., according to the Energy Information Administration.
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