US to release oil from reserves to drive down petrol prices
Photo: Unsplash
President Joe Biden has confirmed that America will release 50m barrels of oil from America’s strategic stockpile as petrol prices continue to soar which could jeopardize the world economy’s recovery.
The decision will be in conjunction with moves by China, India, the UK, Japan and South Korea.
Biden decreases domestic energy production and then is forced to tap into the oil reserves because gas prices are thru the roof.
— Richard Grenell (@RichardGrenell) November 23, 2021
He is to blame for the rising gas prices. His policies are a disaster for us.
There has increasingly been murmurs that an increase was coming as a group of OPEC+ nations stood firm against America’s demands for them to increase their supply.
Biden and Kamala Harris have been addressing rising levels of inflation recently, which is a key reason for their efforts to get more oil onto the market.
Oil supply has been way behind resurging levels of demand seen as the world economy fights back from the pandemic.
As we come out of an unprecedented global economic shutdown, oil supply hasn't kept up w/ demand, forcing families & businesses to pay the price. This action underscores @POTUS' commitment to using the tools available to lower costs for families & continue our economic recovery. https://t.co/j8DvsgHy1l
— Secretary Jennifer Granholm (@SecGranholm) November 23, 2021
Critics have pointed to the minimal impact of the increase in capacity. America consumes 18m barrels of oil a day, which would eat into newly released reserves within three days.
Biden, to the joy of environmental activists, closed down pipeline and oil production across swathes of America, which perhaps would have served as a better solution to today’s woes.
18M barrels consumed a day in the US… 50M is a fraction of the capacity that we would get if we didn’t shut down pipelines and US oil production… we pay to provide supply when you can make money by providing supply. OPEC laughed in our face when we asked for increases https://t.co/Vd7pE35i17
— Jamie Carnavalla (@CarnavallaJamie) November 23, 2021
Furthermore, since the announcement, oil prices have spiked and there could be more to come, as Kyle Bass explains in the thread below.
Get ready for explosively higher oil. 7 years of dramatic underinvestment in hydrocarbons fueled by ignorance like this will inevitably generate $100+ crude oil and $5+ prices at the pump for years to come.We all would love to see an overnight transition to alternative energy 1/3 https://t.co/fwJkRZzgQs
— 🇺🇸Kyle Bass🇺🇸 (@Jkylebass) November 23, 2021