Local

Biden addresses pain at the pump

President Joe Biden is ordering the release of 1 million barrels of oil a day from the country’s strategic oil reserves for six months, the White House said Thursday in a bid to control energy prices that have soared as US and allies imposed Strict sanctions on Russia for its invasion of Ukraine. Biden was to formally announce the release in comments about his government’s plans to fight rising gas prices. do not produce. It also intends to invoke the defense production law to encourage the extraction of critical minerals for batteries in electric vehicles. The White House described the release of oil as a bridge to increase production from domestic producers. Officials estimate that average production will increase by 1 million barrels per day this year and an additional 700,000 barrels per day in 2023. Biden’s move shows that oil remains a key US vulnerability at home and abroad. Higher prices have hurt Biden’s approval at home, and they also add billions of dollars in oil exports to Russia’s war chest as it wages war against Ukraine. The release of stocks in the US would create pressures that could reduce oil prices, although Biden has already twice ordered the release of strategic stocks without causing a substantial shift in oil markets. Part of Biden’s concern is that high prices have not – so far – led to a significant rise in oil production. Scheduled release is one way to increase supplies. Markets reacted quickly as crude oil prices fell more than 3% on Thursday morning to around $ 104 a barrel. However, oil is rising from about $ 60 a year ago, with supplies failing to keep up with demand as the global economy begins to recover from the coronavirus pandemic. Americans use an average of about 21 million barrels of oil a day, with about 40 percent of gasoline consumption, according to the U.S. Energy Information Administration. Domestic oil production equals more than half of the country’s consumption, but high prices have not led companies to return to pre-pandemic production levels. The U.S. produces an average of 11.7 million barrels a day, up from 13 million barrels in early 2020. Republican lawmakers say the problem is that the Biden administration is hostile to oil licenses and the construction of new pipelines like the Keystone XL. . Democrats say the country needs to focus on renewable energy sources, such as wind and solar, that could reduce its dependence on fossil fuels and the leverage of Russian President Vladimir Putin. ” he told Punchbowl News in an interview on Thursday. This policy is driven by the hard left, which the president almost never crosses. And, until this policy changes, we will have a problem. “Oil producers are more focused on meeting the needs of investors than consumers,” according to a survey released last week by the Dallas Federal Reserve. About 59% of executives surveyed said investor pressure to maintain “capital discipline” amid high prices was why they did not raise more, while less than 10% blamed government regulation. The steady release from stocks would be a significant amount and would close the gap in domestic production to February 2020, before the coronavirus caused a sharp drop in oil production. The Biden government announced in November the release of 50 million barrels from strategic stock in coordination with other countries. And after the start of the Russia-Ukraine war, the US and 30 other ries agreed to release an additional 60 million barrels from the reserves, with half of the total coming from the US, according to the Ministry of Energy, which manages it, more than 568 million oil barrels were in stock until March 25. Management planning news was first reported by Bloomberg .___ Associated Press writer Michael Balsamo contributed to this report.

President Joe Biden is ordering the release of 1 million barrels of oil a day from the country’s strategic oil reserves for six months, the White House said Thursday in a bid to control energy prices that have soared as US and allies imposed Strict sanctions on Russia for its invasion of Ukraine.

Biden was to formally announce his release in remarks about his government’s plans to fight rising gas prices.

The White House said Biden would also ask Congress to impose financial sanctions on oil and gas companies that lease public lands but do not produce. It also intends to invoke the law on the production of defense products to encourage the extraction of critical minerals for batteries in electric vehicles.

The White House described the release of oil as a bridge to increase production by domestic producers. Management officials estimate that average production will increase by 1 million barrels per day this year and an additional 700,000 barrels per day in 2023.

Biden’s move shows that oil remains a key vulnerability for the US at home and abroad. Higher prices have hurt Biden’s approval at home, and they also add billions of dollars in oil exports to Russia’s war chest as it wages war against Ukraine.

The release of US stocks would create pressures that could lower oil prices, although Biden has already twice ordered reductions in strategic stocks without causing a significant change in oil markets.

Part of Biden’s concern is that high prices have not – so far – led to a significant rise in oil production. Scheduled traffic is one way to increase commissions.

Markets reacted quickly as crude oil prices fell more than 3% on Thursday morning to around $ 104 a barrel. However, oil is rising from about $ 60 a year ago, with supplies failing to keep up with demand as the global economy begins to recover from the coronavirus pandemic.

Americans use an average of about 21 million barrels of oil a day, with about 40 percent of their consumption devoted to gasoline, according to the U.S. Energy Information Administration.

Domestic oil production equals more than half of the country’s consumption, but high prices have not led companies to return to pre-pandemic production levels. The US produces an average of 11.7 million barrels per day, up from 13 million barrels in early 2020.

Republican lawmakers say the problem is that the Biden administration is hostile to oil licenses and the construction of new pipelines such as the Keystone XL. Democrats say the country needs to focus on renewable energy sources, such as wind and solar, that could reduce its dependence on fossil fuels and the leverage of Russian President Vladimir Putin.

“I think the government’s views on fossil fuels are something of a religion,” Senate Republican leader Mitch McConnell said in an interview with Punchbowl News. “It is somewhat irrelevant to the needs not only of our country but also of the world. This policy is driven by the hard left, which the president almost never crosses. And, until this policy changes, we will have a problem.”

Oil producers are more focused on meeting the needs of investors than consumers, according to a survey released last week by the Dallas Federal Reserve. About 59% of executives surveyed said investor pressure to maintain “capital discipline” amid high prices was the reason they did not draw more, while less than 10% blamed government regulation.

The steady release from stocks would be a significant amount and would close the closure of the domestic production gap compared to February 2020, before the coronavirus caused a sharp drop in oil production.

The Biden government announced in November that it was releasing 50 million barrels of its strategic stockpile in coordination with other countries. And after the start of the Russia-Ukraine war, the US and 30 other countries agreed to an additional release of 60 million barrels from the reserves, with half of the total coming from the US

According to the Ministry of Energy, which manages it, more than 568 million barrels of oil were in reserve until March 25.

Management planning news was first reported by Bloomberg.

___

Associated Press author Michael Balsamo contributed to this report.

Biden addresses pain at the pump Source link Biden addresses pain at the pump

Related Articles

Back to top button