The Release Of 13.4M Barrels Approved by DOE From Oil Reserves

On Tuesday, The United States Department of Energy reported the release of 13.4 million barrels of oil from the Strategic Petroleum Reserve (SPR) as part of Joe Biden’s authorization of emergency oil reserve release last November. With the goal of lowering gas prices and combat the lack of worldwide supply.

ExxonMobil Oil, BP Products North America, Chevron U.S.A., and Shell Trading US were among the corporations that received contracts to trade oil.

Biden stated that the administration’s actions “will not solve the problem of high gas prices overnight.” he also said, “It will take time, but before long, you should see the price of gas drop where you fill up your tank […] And in the longer term, we will reduce our reliance on oil as we shift to clean energy.”

With this release, More than 40 million barrels of crude oil have been supplied by the Biden administration, which includes five earlier exchanges of crude oil. Part of the strategy of releasing 50 million barrels with other countries, such as China, Japan, South Korea, the UK, and India.

However, this might not be working the way it should be. Just in 2019, the U.S. petroleum consumption average was 20.5M barrels per day. And in 2020 there was a slight decrease due to the pandemic, with an average of 18.1M barrels per day.

The Russia and Ukraine conflict is also threatening gas prices. With Russia being the second-largest producer of oil, Faith Birol from the International Energy Agency said that Russian invading Ukraine would have “major implications on the gas prices, if not leading to turmoil.”

Original source material for this article taken from here