U.S. to tap into strategic oil reserve to combat rising gas prices
ABC news has learned that President Joe Biden will tap into the nation's strategic oil supply as a response to the rising gas prices nationwide.
WASHINGTON D.C. (KLKN) — ABC news has learned that President Joe Biden will tap into the nation’s strategic oil supply as a response to the rising gas prices nationwide.
This is according to a senior adminstration official.
ABC news says Biden will make the formal announcement Tuesday afternoon.
“Today, the President is announcing that the Department of Energy will make available releases of 50 million barrels of oil from the Strategic Petroleum Reserve to lower prices for Americans and address the mismatch between demand exiting the pandemic and supply,” the White House tells ABC.
Per and ABC news report, Biden has been working with countries across the world to address the lack of supply as the world exits the pandemic.
“And, as a result of President Biden’s leadership and our diplomatic efforts, this release will be taken in parallel with other major energy consuming nations including China, India, Japan, Republic of Korea and the United Kingdom. This culminates weeks of consultations with countries around the world, and we are already seeing the effect of this work on oil prices. Over the last several weeks as reports of this work became public, oil prices are down nearly 10 percent,” the White House said.
“The U.S. Department of Energy will make available releases of 50 million barrels from the Strategic Petroleum Reserve in two ways: 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. The exchange is a tool matched to today’s specific economic environment, where markets expect future oil prices to be lower than they are today, and helps provide relief to Americans immediately and bridge to that period of expected lower oil prices. The exchange also automatically provides for re-stocking of the Strategic Petroleum Reserve over time to meet future needs,” the statement said.