On Thursday, as inflation hit a 40-year high, United States (US) President Joe Biden announced the largest-ever release of oil from the country’s strategic reserves in a bid to counter surging gasoline prices, which he claimed is a byproduct of Russia’s war in Ukraine.
I know gas prices are painful. My plan will help ease that pain today and safeguard against it tomorrow.
— President Biden (@POTUS) April 1, 2022
I'll continue to use every tool at my disposal to protect you from Putin’s price hike. And I’m calling on Congress to put aside partisanship. Let’s meet this moment together.
In a statement, the White House elaborated on Biden’s historic oil release from the US’ Strategic Petroleum Reserve (SPR). Biden plans to increase domestic oil production by an average of one million barrels per day this year and by about 700,000 barrels per day next year. The US Department of Energy aims to use the revenue generated from this release to later restock the SPR. Washington has urged oil and gas companies to follow suit, noting that there are still some companies that choose to make “extraordinary profits” without contributing to the supply.
#Oil price continues to fall as US make biggest ever release from Strategic Petroleum Reserve. Biden orders 1mln barrels per day into mkt over next 6mths amid war-related price spike. pic.twitter.com/QAT8FbeDzx
— Holger Zschaepitz (@Schuldensuehner) March 31, 2022
Furthermore, the US President remarked that the government has taken note of the fact that there are over 9,000 unused permits for oil production that cover more than 12 million acres of federal land. In this context, Biden insisted that Congress is ready to penalise oil companies that just sit on “acres of public lands that they are hoarding without producing” via a “use it or lose it policy.”
Biden told reporters that his decision was made in coordination with Washington’s allies and the 11 CEOs of America’s largest utility companies. In this moment of “patriotism,” he also advised American oil companies, who made record profits during the COVID-19 pandemic, to “invest in your customers.”
Biden singled out Russian President Vladimir Putin as the one to blame for this year’s $1 increase in gasoline prices by saying, “Americans face rising prices at the pump because of Putin’s Price Hike.” In an attempt to further offset the burden of the so-called hike, Biden also mentioned that he will intensify efforts in Congress to expedite Washington’s transition to clean energy, which he claimed will come with millions of unionised jobs for Americans.
#BREAKING | US President Biden announces the largest release of oil from the Strategic Petroleum Reserve in US history. pic.twitter.com/RAZ1GOQb56
— Aadesh Gindodiya (@AadeshGindodiya) March 31, 2022
The White House also said that it has authorised the use of the Defence Production Act to boost the production of critical minerals such as lithium, nickel, cobalt, graphite, and manganese for large-capacity batteries. The move comes in an effort to reduce Washington’s reliance on China and other countries for materials that will be central to the US’ clean energy transition.
Senior Biden administration officials remarked that the President’s two-part plan, which includes increasing production in the short-run while focussing on clean energy in the long run, will provide American families with financial relief.
Local drivers share their thoughts on gas prices and their optimism for a potential decrease in expenditures at the pump #gasprices #oil #OilReserve pic.twitter.com/XGmnH98loQ
— Shane Hulsey (@shanehulsey6) April 1, 2022
However, the Voice of America reported that despite Biden’s announcement to release millions of barrels immediately, prices reduced by only 3% to $104 per barrel; in comparison, a barrel of oil cost $60 at the same time last year. Separately, on Thursday, the US Commerce Department reported the largest year-on-year rise in inflation since January 1982, indicating a sharp increase in prices of food, gasoline, and other necessities.