Sunday, February 25, 2024

Biden Selloff Leaves Emergency Oil Reserves Lowest In 40 Years

The Strategic Petroleum Reserve (SPR) is at its lowest level in nearly 40 years. Although the SPR was created by President Ford in 1975 as a backup plan for any future oil shortage, it has turned into a cheap political trick to lower gas prices and gin up votes during election years. President Clinton and Obama did it. Now President Biden is trying it. But it’s a dangerous game that leaves us more vulnerable to our enemies.

In March, Biden ordered 1 million barrels of oil to be released each day, for 6 months. This oil has been auctioned off in waves to the highest bidder. So far, 155 million barrels have been sold. The last bit of the original allotment will be delivered- conveniently- just after the midterms.

Even the White House’s official statement on the matter said it was “the largest release of oil reserves in history” and “unprecedented.”

The rationale for draining our reserves was simple: allowing companies to purchase oil at a lower cost than what was available on the global market would cause prices at the pump to drop.

But did it work? Short answer, no. In July, the Treasury Department determined that Biden’s oil release lowered gas anywhere from 17 cents to 42 cents per gallon. So, if your vehicle holds 15 gallons, at most you saved a little over $6 a fill-up.

This would be like lighting a room in your house on fire to save money on the electric bill. It’s a short-term solution with long-term consequences.

The Biden administration’s pump and dump was a mirage to make you think he solved high gas prices. The average price of gas has been a little under $4/gallon for a while. This nearly 60% increase from when Trump left office is a lot, especially considering that half of American workers make less than $38,000/year. 

Biden’s draining of the SPR is a liability dressed as a coupon. It makes us even more vulnerable to the guy Biden fears most: President Vladimir Putin. The SPR can’t protect us if we use it for temporary gas rebates. It was created for emergencies – not discounts.

And yet he’s doubling down on this suicidal strategy. After dumping another 10 million barrels from the SPR, here’s Biden again…

A year before the Russian invasion of Ukraine, gas was a dollar more per gallon than when Trump left office. If Biden can’t solve high gas prices in good times or bad times, what will he do in the worst of times?

Of all the things Biden wants to “build back better” the SPR isn’t one of them. He isn’t planning on refilling the SPR until next year. 

This summer when gas hit $5 a gallon, Uncle Joe drained the oil reserve to make his party look good during the midterms. But after the election, your opinion of him won’t matter until 2024. In the best-case scenario, we all get to feel pain at the pump again. Worst case, there is no oil.