Another set of initiatives to cut gas prices were announced by President Joe Biden, including the release of an additional 15 million barrels of oil from the country’s strategic reserve in December.
With the release of oil from the Strategic Petroleum Reserve, Biden’s program—which he first unveiled in March—that aimed to lower gas prices by increasing supply on the market and encouraging releases from partners across the globe has come to an end.
From the Roosevelt Room, Biden declared, “With my announcement today, we’re going to continue to stabilize markets and cut prices at a time when the actions of other countries have generated so much instability.
Administration officials earlier informed reporters that this is not a new tranche but rather the last 15 million barrels of the 180 million that Biden promised to transfer over a six-month period this spring.
The government is taking the rare step of planning to buy oil to rebuild the strategic reserve once crude falls below $70 per barrel, according to Biden on Wednesday. According to officials, this action is intended to provide the market with a clear signal and encourage domestic oil production.
This isn’t a new tranche, administration officials told reporters earlier, but rather the final 15 million barrels from the 180 million that Biden pledged this spring to release over six months.
Biden on Wednesday also said the administration is taking some unusual steps of planning to buy oil to rebuild the strategic reserve once crude falls below $70 per barrel. Officials said that step is meant to send a clear signal to the market and incentivize domestic oil production.
To that end, Biden also went after oil companies on Wednesday by accusing them, as he has in the past, of price gouging at a time of historic profits.
“You should not be using your profits to buy back stocks or for dividends,” Biden said in remarks directed at energy companies. “Not now, not while a war is waging. You should be using these record-breaking profits to increase production and refining. Invest in America for the American people. Bring down the price you charge at the pump to reflect what you pay for the product.”
Oil executives previously testified before Congress to address concerns about their prices but have insisted it is the result of larger economic forces, including supply and demand. The oil companies and some energy analysts have also repeatedly pushed back on Biden’s calls to ramp up production, saying that increasing production is not so simple or easy and that other factors are at play.
Gas prices have started to drop in the last week, but the national average for a gallon of gas is 20 cents higher than one month ago, according to AAA with gas prices also 56 cents higher than one year ago, though down from their summer high of more than $5 per gallon.
