On Wednesday, President Joe Biden denied making a political maneuver to lower gas prices before the midterm elections by releasing additional oil from the Strategic Petroleum Reserve.
He explained his decision to release 15 million barrels to reporters at the White House, saying, “It’s not at all politically driven.”
Biden criticized oil firms in his speech for not producing enough gas and for not reducing pump prices.
“When the price of oil declines, we should see a decline in gas station prices at the pump as well.” That is how it is intended to operate. However, that is not what is taking place, he stated.
“Reduce the amount you charge at the pump so that it reflects the cost of the product.” You still generate a healthy profit,” he said to the energy corporations. The American people will receive the break they deserve and pay a reasonable price at the pump, and your stockholders will still make a lot of money.
In light of the upcoming election on November 8 in which voters will decide which party will control Congress, Biden presented a three-part proposal to reduce gas costs. Prior to the election, when Republicans are widely expected to win the House, voters often said that the state of the economy and the high cost of living were their top worries.
According to AAA, the average price of petrol has increased by around 20 cents to $3.85 per gallon during the last month. Prices are now lower than they were in June of this year, when they were above $5 per gallon in certain places.
The drop was credited to Biden. And once again, he attributed their emergence to Russian President Vladimir Putin’s invasion of the Ukraine.
He responded, “Gas prices fall down and they come down again.” They’re not dropping quickly enough, however. Families are in need.
Since Putin’s invasion of Ukraine caused gas prices to skyrocket, I have been making every effort to lower them,’ he said.
Additionally, he said that if oil prices continued to rise as the cold weather season drew near, he would be willing to release more from the American reserve.
We refer to it as a prepare and release strategy. This enables us to act rapidly to avoid increases in the price of oil and to react to global developments,’ he added.
In response to Republican charges that his government had decreased oil output, he fought back.
“We must properly boost American oil production while not postponing or delaying the switch to sustainable energy. Let’s bust some misconceptions right now. U.S. oil production is not being halted or curtailed by my administration.
The exact opposite. Every day, we produce 12 million barrels of oil. We will also produce 1 million barrels per day more by the end of this year than we did on the day I entered office, he said.
Additionally, he gave oil corporations a reason to release more petroleum even as he criticized them for maintaining high pricing when the price of oil declined. When oil prices reached $70 per barrel, the president promised to repurchase it to replenish the strategic reserve.
This implies that oil firms may invest in increasing production today with the knowledge that they will be able to sell us their oil at the current price of $70 in the future. At $70 a barrel, refining and replenishing the reserve is a good price for businesses, he claimed.
I want to tell the oil firms that they are sitting on record profits. And we’re providing you greater assurance so you can take action right now to boost oil output,” said Biden.
Part of Biden’s remark was in reaction to recent output reductions by OPEC+ countries. The organization, which is in charge of 40% of global oil output, said earlier this month that it will increase production by 2 million barrels per day, or 2% of the available supply.
But it’s possible that Biden’s action was just symbolic.
According to the Energy Information Administration, even a full day’s worth of oil consumption in the United States would not be covered by the 15 million barrel discharge.
Since March, 160 million barrels of oil have been released by Biden, reducing the reserves to their lowest levels in four decades.
According to Department of Energy statistics, the Strategic Petroleum Reserve had 416.4 million barrels in the week ending September 30 — the least amount since 1984.
The cost of food and other necessities is at an all-time high as the midterm elections approach.
White House press secretary Karine Jean-Pierre told CNN’s Wolf Blitzer on Tuesday night, “Look, we are doing all we can. When it comes to reducing expenses and preventing inflation, “We are taking this extremely seriously.” And the President will go on with that job. The Inflation Reduction Act was crucial for this reason.
Republicans must gain a net of five seats in the November election to take control of the House, while they only need a net gain of one seat to take over the equally divided Senate.
A survey conducted by the New York Times and Siena College on Monday revealed that the GOP is gaining ground: Compared to 45% who indicated they would vote for the Democrat, 49% said they would support the Republican candidate for congress.