Biden Draining the Strategic Petroleum Reserve Even More
Biden Draining the Strategic Petroleum Reserve Even More
This is my latest entry in my experiment with daily posting.
I hate that I’m turning into a crotchety old conservative guy grumbling about the Democrats, but a running theme throughout Unprepared.life’s history is President Biden’s continual draining of the Strategic Petroleum Reserve to lower gas prices.
A few ago, I was going to actually give Biden credit for refilling it, but I’m glad I held off, because it turns out he didn’t.
This is from chemical engineer Robert Rapier writing for Forbes:
After Russia invaded Ukraine, the Biden Administration made the largest withdrawal in SPR history in an effort to curb the oil price spikes that happened in the wake of the invasion. Between Biden’s inauguration in 2021 and mid-2023, 291 million barrels were sold from the SPR. That 46% reduction took SPR volumes to a level last seen in 1983.
Since hitting a low level of 347 million barrels in June 2023, the Biden Administration has returned about 14 million barrels of the 291 million removed (4.8%).
The DOE has consistently promised to refill the SPR as market conditions allow. Although previously indicating they would refill the Strategic Petroleum Reserve (SPR) by the end of 2024, the DOE recently canceled solicitations.
So the Biden Administration slashed the SPR by nearly half and then refilled not even 5% of it. The Department of Energy canceled a contract to buy more oil last month due to rising prices. They also delayed another plan to refill the SPR in late summer of 2023.
Now they’re about to drain even more: the Associated Press reports that Biden is about to sell off another million barrels to lower gas prices going into election season. The oil is coming from a reserve set up in the wake of Superstorm Sandy.
And in case you think I’m being overly cynical, both Energy Secretary Jennifer Granholm and White House Press Secretary Karine Jean-Pierre cited lowering gas prices as the reason why the administration is selling the oil. Prices aren’t even that bad at the moment, but it’s an election year and Biden is doing everything short of sending people $100 bills in the mail to buy votes.
I remember the W years when gas shot over $4 a barrel, and I was all for price relief then, but China also wasn’t rattling its saber in Taiwan’s direction, which will likely be the topic of tomorrow’s post.