The US is releasing 50 million barrels of crude oil while prices spike. It is being criticized by analysts and lawmakers alike.
Summary
President Biden announced Tuesday he will tap into the nation’s Strategic Petroleum Reserve (SPR) and release 50 million barrels of oil in an effort to “increase supply” with gas prices soaring in the United States.
- The move will be in concert with other nations such as China and India to combat OPEC+ producers’ reticence to increase production.
- Climate change activists are specifically not criticizing Biden’s action, saying “this is what reserves are for – defending our economy against disruption.”
- While the Biden administration is citing legislation enacted by Republicans and the Trump administration for justification, Republican lawmakers are blasting the move for setting a bad precedent.
- Experts say Biden’s dip in to the SPR is unlikely to affect prices during the busy holiday weekend.
- The New York Times said Biden’s announcement “underwhelmed oil traders” because of the paltry amount released.
- ABC News also cast skepticism on the administration’s action, citing one analyst calling it a “political” move that enables future politicians to use the SPR to “improve a candidate’s re-electability.”
- CNN highlighted their coverage by noting Biden himself said the SPR release “will not solve the problem of high gas prices overnight.”
- Fox Business noted what few mainstream outlets would: the released product will primarily go to other nations, namely China and India, who are releasing their own reserves.
- Breitbart quoted members of the oil industry who said any effect the Biden administration’s actions will have will be temporary and that the administration should “encourage the production of American energy resources.”
- Townhall highlighted the poor preparation of Biden’s Energy Secretary Jennifer Granholm (of laughing-about-gas-prices fame) who could not answer the question of how many barrels of oil the American economy uses a day on average.
Author’s Take
Biden’s move is purely political. The amount released is a pittance compared to the needs of the American economy. It’s another example of politicians “doing something” but not actually doing anything that yields results, only headlines.
Oil is, enough oil sold in other nations does have a more likely effect of driving down prices in the United States, if it were anywhere close to enough, which this is not.
Granholm’s blunder is just one of several gaffes she’s made and controversies in which she’s embroiled lately. Granholm, like Vice President Kamala, either needs to get serious about media training or a better staff.
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© Dallas Gerber, 2021
