The White House on Tuesday said 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 President 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, “ the White House said.
According to the White House, 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.
- 18 million barrels will be an acceleration into the next several months of a sale of oil that Congress had previously authorized.
“Today’s announcement reflects the President’s commitment to do everything in his power to bring down costs for the American people and continue our strong economic recovery,” The White House statement said.
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