15 Million More Barrels of Gasoline Being Released From Strategic Reserve

October 19, 2022 by Dan McCue
15 Million More Barrels of Gasoline Being Released From Strategic Reserve
Gas pump. (Photo by Dan McCue)

WASHINGTON — The Biden administration will release 15 million barrels from the Strategic Petroleum Reserves, and may consider releasing significantly more this winter, in an effort to ease high gasoline prices.

The announcement comes in the wake of several polls indicating that voters are particularly concerned with the economy and inflation, and as the White House strives to shore up Democratic congressional candidates ahead of next month’s midterm elections.

According to a notice of sale issued Wednesday morning by the Department of Energy, this, the last tranche of a 70-million-barrel draw down announced by President Biden last spring, will be delivered in December.

In announcing the release, the president called on the DOE “to be ready to move forward with additional significant Strategic Petroleum Reserve sales this winter if needed due to the war in Ukraine or other disruptions of the global fuel market.”


He also announced the administration intends to repurchase crude oil to replenish the SPR when prices are at or below about $67-$72 per barrel, adding to global demand when prices are around that range. 

As part of this commitment, the Energy Department will adopt a rule allowing it to enter fixed price contracts through a competitive bid process for products delivered at a future date. 

In a briefing with reporters on Tuesday night, a senior administration official said this repurchase approach will protect taxpayers and help create certainty around future demand for crude oil. 


The White House also hopes that it will encourage firms to invest in production right now.

Finally, the president is calling on companies to pass through lower energy costs to consumers right away. 

“The profit that energy refining companies are now capturing on every gallon of
gasoline is about double what it typically is at this time of year, and the retailer margin over the refinery price is more than 40% above the typical level,” the official said.

“These outsized industry profit margins — adding more than $0.60 to the average price of a gallon of gas — have kept pump prices higher than they should be,” the official added.

But Sen. John Barrasso, R-Wyo, ranking member of the Senate Committee on Energy and Natural Resources, slammed the move in a written statement Wednesday, calling it nothing more than an act of political desperation.


“The Strategic Petroleum Reserve was built for a national energy crisis – not for a Democrat election crisis,” Barrasso said. “Joe Biden is draining our emergency oil supply to a 40 year low. His dismal approval rating is not a justifiable reason to continue to raid our nation’s oil reserves. The surest way to bring down energy prices is to unleash American energy production.”

Dan can be reached at [email protected] and at https://twitter.com/DanMcCue.

A+
a-

In The News

Health

Voting

White House

November 29, 2022
by Dan McCue
‘Tis the Season: Capitol, White House Christmas Trees to Be Lighted

WASHINGTON — If you love attending Christmas tree lightings, the next two days will be especially exciting. On Tuesday night,... Read More

WASHINGTON — If you love attending Christmas tree lightings, the next two days will be especially exciting. On Tuesday night, at 5 p.m., House Speaker Nancy Pelosi, D-Calif., will join members of the North Carolina Congressional Delegation and Gov. Roy Cooper to light the U.S. Capitol... Read More

November 28, 2022
by Dan McCue
French President’s US Visit to Feature Serious Talk, a State Dinner and a Side Trip to New Orleans

WASHINGTON — French President Emmanuel Macron’s whirlwind visit to the U.S. this week will include multiple stops in the nation’s... Read More

WASHINGTON — French President Emmanuel Macron’s whirlwind visit to the U.S. this week will include multiple stops in the nation’s Capitol on Wednesday and Thursday and end with a visit to the Big Easy on Friday. The White House announced Macron’s visit in September, and the... Read More

November 23, 2022
by Dan McCue
White House Offers Up Thanksgiving ‘Talking Points’ to Get Through Thursday’s Dinner

WASHINGTON — Elon Musk may have invited former President Donald Trump back to Twitter, but it’s the Biden administration that... Read More

WASHINGTON — Elon Musk may have invited former President Donald Trump back to Twitter, but it’s the Biden administration that is taking full advantage of the social media platform for some pre-holiday messaging. In a Tweet posted shortly after 9 a.m. Wednesday, White House Chief of... Read More

November 22, 2022
by Dan McCue
First Lady Receives Official White House Christmas Tree

WASHINGTON — First Lady Jill Biden and her 2-year-old grandson Beau formally received the 2022 White House Christmas tree on... Read More

WASHINGTON — First Lady Jill Biden and her 2-year-old grandson Beau formally received the 2022 White House Christmas tree on Monday, declaring it “beautiful” as the growers, invited guests and a smattering of administration staffers looked on. The tree, a 20-year-old fir, was grown at the... Read More

November 21, 2022
by Dan McCue
Biden Pardons Turkeys, Celebrates ‘Friendsgiving’ With Military Families

WASHINGTON — President Joe Biden had a busy schedule on his plate on Monday, in some ways almost literally. The... Read More

WASHINGTON — President Joe Biden had a busy schedule on his plate on Monday, in some ways almost literally. The day began with the president pardoning the National Thanksgiving Turkey and his alternate in a ceremony on a chilly South Lawn of the White House. This... Read More

November 15, 2022
by Dan McCue
Wholesale Prices Moderate, Adding to Hopes That Inflation Is Waning

WASHINGTON — Wholesale prices increased less than expected in October, yet another indicator that inflation, which has stubbornly dogged the... Read More

WASHINGTON — Wholesale prices increased less than expected in October, yet another indicator that inflation, which has stubbornly dogged the economy for much of the year, is finally beginning to wane. The producer price index, a measure of the prices that companies get for finished goods... Read More

News From The Well
scroll top