The Biden administration is reportedly worried about the potential return of high gas prices in the wake of their decision to tap into the strategic petroleum reserve (SPR) in 2021 and 2022. Sources within the administration fear that their actions may not be enough to combat a potential price surge, especially as the SPR’s supply has been significantly depleted.
“They succeeded last year in the second half, but this year I think they’ve kind of run out of bullets,” said Amrita Sen, director of research at Energy Aspects. “They got a little overconfident that prices would stay low,” she added, pointing out that the administration’s actions may not be as effective this time around.
The Biden administration released 180 million barrels of oil from the SPR in late 2021 and 2022 as fuel prices soared for Americans. This decision caused a political headache for President Biden and other Democrats leading up to the 2022 midterm elections. It is worth noting that approximately 6 million barrels were sold to China, raising concerns about potential national security implications.
The SPR is currently at its lowest levels since 1983, and the Department of Energy (DOE) has decided against replenishing it, citing unfavorable market conditions. Experts have warned that it could take “decades” to refill the SPR after Biden’s releases, leaving the country vulnerable if another crisis were to arise.
“Now that geopolitical instability has engulfed the Middle East again, the administration’s 2021 and 2022 SPR releases have come back into focus,” said a source familiar with the situation. With the ongoing tensions between Israel and Hamas, the U.S. is in a precarious position if the conflict escalates and disrupts the global oil market.
“There’s another arrow in the quiver, but there’s only so many arrows right now,” said Jim Burkhard, head of energy markets research for S&P Global Commodity Insights. “Could they repeat it? Yes, but then you’re left with much, much less oil.”
The Trump administration’s attempt to top off the SPR in 2020 when prices were around $25 per barrel was met with criticism from Democrats who saw it as a handout to Big Oil. However, in a twist of irony, the current DOE is now looking to replenish the reserve amidst much higher prices, with a target of $79 per barrel.
The spot price for a barrel of West Texas Intermediate crude oil currently stands at around $86, highlighting the failure of the Biden administration’s energy policies and their lack of foresight in not replenishing the SPR when prices were lower.
But this is just one aspect of Biden’s failing economic agenda. His decision to tap into the SPR has depleted its reserves, leaving the country vulnerable to future crises. This further highlights the administration’s lack of competence and foresight when it comes to managing the economy.
According to the White House, Joe Biden has: "presided over the largest historical release of barrels of oil from the strategic reserve, one hundred and eighty million barrels."
Only problem? Millions of those barrels went to China, and not us. Thanks Joe! pic.twitter.com/egHQ50Ei5u
— Daily Caller (@DailyCaller) July 18, 2022
The White House and the DOE have yet to respond to requests for comment on the current situation and the potential consequences of their actions. It appears that the Biden administration is running out of options to combat rising gas prices and is now scrambling to figure out a solution. Their failure to address this issue adequately may have dire consequences for the American people in the future.