The Biden administration plans to purchase 2.7 million barrels of oil at an average price of $79 per barrel to replenish the nation’s emergency stockpile.
This comes after the administration sold off over 40% of the Strategic Petroleum Reserve last year to lower gas prices, leaving the stockpile at its lowest level since the 1980s.
The move has drawn criticism from Republicans, who argue that it has made the U.S. vulnerable to potential energy threats. (Trending: Another Major Company Goes Woke And Goes Broke)
The Biden administration announced new regulations that are expected to deliver significant cuts to the greenhouse gas methane in the oil and gas sector. https://t.co/jSVDkyMf80 pic.twitter.com/z6Vm1JAYyy
— The Hill (@thehill) December 3, 2023
The Trump administration had 630 million barrels at the beginning of 2020.
This has dropped to 351 million barrels under Biden.
The administration’s plan to repurchase 60 million barrels of oil aims to replenish the reserve.
Despite a fresh round of OPEC+ production cuts, oil prices remain relatively high.
“Proponents of releasing barrels from the emergency stockpile say that doing so increases oil supplies and reduces prices at the pump, while also generating billions in revenue for the federal government,” the report found.
“But critics say that releasing emergency supplies is a short-term fix and does not increase the country’s oil production capabilities.”
West Texas Intermediate, the U.S. benchmark, was hovering around $75.90 per barrel.