New reports about what President Biden is doing with America’s fuel reserves are raising concerns even amongst Democrat loyalists that the President might not have the country’s best interests at heart after all.
Last month, Biden announced that he was planning to release 1 million barrels of oil per day from the U.S. Strategic Petroleum Reserves (SPR) for up to six months – amounting to roughly 5% of American oil consumption; the same amount Russia supplied the U.S.
However, it has been revealed that rather than releasing the oil into the U.S. as he claimed he would do to help alleviate high gas prices, the president has been shipping the oil to foreign nations willing to pay a higher price.
“A cargo of crude from the U.S. Strategic Petroleum Reserve departed a Texas port bound for Europe, a signal of increasing oil-market disarray as refiners shun Russian supplies and prices surge,” Bloomberg News reported.
“The rare export of strategic U.S. barrels is evidence of the ever-widening search for crude to replace Russian cargoes seven weeks after President Vladimir Putin’s invasion of Ukraine triggered international revulsion and sanctions. With the global oil benchmark trading above $110 a barrel, traders and refiners also are trying to cope with a cutoff of Libya’s biggest source of crude and little expansion in U.S. output,” the news site said.
According to Bloomberg, this specific tanker is headed for Rotterdam, which is Europe’s largest seaport.
“A tanker known as the Advantage Spring loaded low-sulfur crude originally pumped from the strategic reserve caverns in Southwest Louisiana at a port in Nederland, Texas earlier this month, according to a person familiar with the matter. The ship, chartered by an affiliate of French energy giant TotalEnergies SE, is bound for the key European port of Rotterdam, according to ship-tracking data compiled by Bloomberg.”
Back in November, Biden released about 60 million barrels, the largest release of its kind in history. Another 30 million barrels were released in March.
The U.S. Energy Information reported that, “In 2020, the United States consumed an average of about 18.19 million barrels of petroleum per day, or a total of about 6.66 billion barrels of petroleum” over the full year.
In March, Biden said 32 million barrels “will be an exchange over the next several months, releasing oil that will eventually return to the Strategic Petroleum Reserve in the years ahead,” with the other 18 million authorized for sale via Congress.
If this is true, then the total amount of oil released will be just over 2.5 days worth and will have little to no impact on consumer prices – which means it’s likely just a publicity stunt to trick the American people into thinking he’s trying to fix the dangerously high fuel prices.
Either way, tapping the reserve is only a short-term band-aid and the underlying problems caused by Biden policy decisions still pose a serious threat to U.S. oil prices in the long run.