After three years of former President Trump’s energy policies, the United States Of America was energy independent and an exporter of oil and natural gas.
The price of raw crude had plummeted prior to a small rebound leading some operators to stop drilling as they were losing money per barrel.
The was so much stored that oil companies at one point sold the oil at a loss because the cost of storing it was unsustainable. With oil below zero, Trump to create Strategic Petroleum Reserve historic buying opportunity
After a year in office, the Biden energy plan has flipped all of this on its proverbial head, once again having the U.S. dependent on OPEC for our energy supply.
Due to pressure coming from the Democratic leadership, President Biden announced the release of 50 million barrels of oil from the Strategic Petroleum Reserve (SPR) on Tuesday as high gas prices continue to affect Americans across the country.
Former President Trump just responded to the announcement
As a result, gas prices had dropped and settled below $2 per gallon in most of the U.S. which acted as a tax break for everyone who paid a gas bill or filled up a gas tank.
Since Biden has closed pipelines, including stopping the development of the XL Keystone, energy prices have skyrocketed, especially gasoline which has doubled or more in some areas of the nation.
The SPR is a large supply of oil along the Texas and Louisiana coasts that the U.S. keeps for emergencies. The SPR is a sort of emergency fund for gasoline, intended to be tapped only to address disruption in the oil supply, such as after natural disasters, but it hasn’t been used to control oil prices.
“This is the first time we have done something like this in parallel with other major energy-consuming nations,” one senior administration official said, noting that the release is being taken in parallel with China, India, Japan, the Republic of Korea, and the U.K.
The U.S. Department of Energy has a two-pronged plan for the release, with 32 million barrels being part of an exchange over the course of several months, according to the White House. Eighteen million more barrels “will be an acceleration into the next several months of a sale of oil that Congress had previously authorized,” according to the administration.
Releasing oil from the SPR might lower prices in the short term, but its impact could be limited.
On the bright side, Joe will not be around for much longer but the massive amount of natural resources in the ground will still be there to access when we return a reasonable energy program during the upcoming second Trump term.