Biden Lowering Gas Prices by Releasing “Unprecedented” 1 Million Barrels of Oil per Day According to the White House, this record release of oil reserves over the next six months will lower gas prices, fight inflation and give domestic producers time to ramp up production.
By Main Street Sentinel Staff
The White House announced a “historic” and “unprecedented” new effort to fight inflation and lower gas prices across the country: over the next six months, the U.S. will release 1 million barrels of oil per day from its strategic reserves.
“The scale of this release is unprecedented: the world has never had a release of oil reserves at this 1 million per day rate for this length of time,” the White House said in a statement. “This record release will provide a historic amount of supply to serve as a bridge until the end of the year when domestic production ramps up.”
Oil prices dropped after reports of the move surfaced on Wednesday evening: Brent crude futures for May fell 4 percent to trade at $108.89 per barrel while U.S. crude futures slid 4.7 percent to $102.84.
President Biden has been working to stabilize prices at the pump ever since Russia’s war in Ukraine dramatically increased the price of gasoline. According to polling from Politico/Morning Consult, 76 percent of Americans hold Putin responsible for rising gas prices
Experts have identified other culprits responsible for rising prices, including price-gouging oil companies and high post-pandemic economic growth. According to a recent report from the Bureau of Land Management, oil companies are currently holding nearly 9,000 approved but unused drilling permits for millions of acres of federal land.
“As a result, the Biden administration is now calling on lawmakers to impose penalties on producers who refuse to use wells from approved leases.
“Companies that are producing from their leased acres and existing wells will not face higher fees,” the administration said. “But companies that continue to sit on non-producing acres will have to choose whether to start producing or pay a fee for each idled well and unused acre.