President Biden is being criticized for utilizing the strategic petroleum reserve (SPR).
On March 31, President Biden announced the release of up to 180 million barrels of crude oil from the nation’s SPR over a six-month period, in his effort to curb high gas prices.
The SPR usually keeps around 700 million barrels of crude oil in the case of unstable market supply or international emergencies. The SPR webpage states it is the world’s largest supply and the “sheer size” makes it a deterrent against oil cutoffs.
As of April 1, the SPR held 564.58 million barrels of oil in stock. As of Sep. 23, 2022, the SPR inventory stood at 422.58 million barrels of oil, a decrease of 142 million barrels since Biden’s initial release.
In an op-ed for Forbes, Robert Rapier calls Biden’s decision to tap into the SPR a “gamble” in that he must hope the US does not encounter a foreign oil supply crisis, which the SPR was created to address.
Rapier argues that historically, Democrats have reduced the SPR far more than Republicans. Both President Clinton and Obama depleted the SPR to reduce high gas prices during election years. Some note the SPR is unnecessary due to America’s energy security, but Rapier accuses Biden of using the SPR to help his party win midterms in 2022. Biden announced he will refill the SPR, which Rapier predicts will happen after the 2024 elections.
When Biden took office in 2021, he signed an executive order slowing federal oil and gas leases, siting the “climate crisis” as the main reason for the moratorium. Biden said, “It is the policy of my Administration that climate considerations shall be an essential element of United States foreign policy and national security” according to whitehouse.gov. The order lays out ways the Administration will prioritize the climate crisis including a “pause new oil and natural gas leases on public lands or in offshore waters pending completion of a comprehensive review.”
Rapier sees Biden’s move to drain the SPR as contradicting his plan to reduce carbon emissions and combat the climate crisis. He says, “an administration that has frequently emphasized the importance of reducing carbon emissions is trying to increase oil supplies to bring down rising oil prices — which will in turn help keep demand (and carbon emissions) high.”
The latest Gasoline Misery Index, which tracks how much more (or less) the average American consumer will have to spend on gasoline on an annualized basis, reports that the average American is spending around $319 more on gas this year when compared to the same time a year ago. The Gas Misery Index also reports Americans are spending $771 more on gas today than when President Biden took office.
Although gas prices have gone down in the last few months, the AAA announced the national average is rising as the supply becomes more limited and demand increases. AAA notes drivers should prepare for higher prices returning, due to limited distribution during Hurricane Ian and increasing crude oil prices. Since Sep. 22, Michigan has seen one of the largest increases in gas prices. Michigan’s state gas price average has increased 30 cents for an average of $4.168 per gallon (as of Sep. 30).
