Joe Biden announces he's tapping into Strategic Petroleum Reserve
If Joe Biden won't increase oil production, then we should expect higher gas prices until Republicans retake the White House in 2024. If the US doesn't increase oil exploration, which won't happen thanks to the Democrats' environmental activist supporters, expect inflation to remain high. Without robust energy production, the cost of virtually everything goes up.
It isn't just higher gas prices and more expensive home heating bills, either. Higher diesel prices translates into higher grocery prices. The cost of shipping products to stores increases, too.
Releasing 50,000,000 barrels of oil is a holiday weekend's worth of driving. Big deal. What's insulting is the White House statement on the release:
The President stands ready to take additional action, if needed, and is prepared to use his full authorities working in coordination with the rest of the world to maintain adequate supply as we exit the pandemic.That's BS. He isn't prepared to use "his full authorities" to maintain an adequate supply of oil. He has the authority to expand exploration of oil on federal lands. That isn't a consideration at this point. This explanation is worth watching: If Biden isn't willing to increase production, families should expect their budgets to get squeezed even tighter. Joe Manchin has issued this statement on the SPR:
Today's release from the Strategic Petroleum Reserve is an important policy Band-Aid for rising gas prices but does not solve for the self-inflicted wound that shortsighted energy policy is having on our nation. With an energy transition underway across the country, it is critical that Washington does not jeopardize America's energy security in the near term and leave consumers vulnerable to rising prices. Historic inflation taxes and the lack of a comprehensive all-of-the-above energy policy pose a clear and present threat to American's economic and energy security that can no longer be ignored.The opposite of wisdom is foolishness. The personification of foolishness is Joe Biden. I'm going to modify an old Reagan line from his debate with Jimmy Carter. In that debate, Reagan said that "the definition of a recession is when your neighbor gets laid off. The definition of a depression is when you get laid off (here'a the modification) and the recovery starts when Joe Biden loses his job.I continue to call on President Biden to responsibly increase energy production here at home and to reverse course to allow the Keystone XL pipeline to be built which would have provided our country with up to 900,000 barrels of oil per day from Canada, one of our closest allies. To be clear, this is about American energy independence and the fact that hard working Americans should not depend on foreign actors, like OPEC+, for our energy security and instead focus on the real challenges facing our country's future.
It turns out that tapping the SPR isn't even a Band-Aid:
Oil prices erased losses and jumped on Tuesday morning following the announcement from the U.S. Administration that it would make available 50 million barrels of oil from the Strategic Petroleum Reserve (SPR) to lower said oil prices.As of 9:27 a.m. EST, WTI Crude prices were back above $77, having erased earlier losses and trading up by 1.30% at $77.75. Brent Crude prices returned to the $80 mark, and were approaching $81, as they had risen by 1.73% to $80.96.
The headline for the oil market on Tuesday morning was the announcement of US President Joe Biden that the Department of Energy would release 50 million barrels of oil from the SPR in a bid to lower high gasoline prices in a coordinated effort with other major oil-consuming nations. The SPR release from the United States is being carried out in parallel with other major energy-consuming nations, including China, India, Japan, the Republic of Korea, and the United Kingdom.
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