On Thursday March 31, President Biden announced the largest release of US emergency oil reserves in the country’s history.
The move is intended to bring down the prices of petroleum, which have soared since many Western countries have imposed trade sanctions on Russia, including the importation of the country’s vast energy supplies.
As a result, President Biden announced that his administration will force US petroleum companies that own leases to the right to extract oil on federal land, to ramp up their extraction. Failure to do so will see them have their leases revoked, According to President Biden, oil extraction companies have taken advantage of the changes in prices for too long. He said that in the face of Russian invasion against Ukraine, it is immoral for them to benefit from what he called “Putin’s war”. He stressed several times during his speech that such actions also affect American citizens and families.
Therefore, the plan to open up the oil reserves is to allow the petroleum and oil companies to ramp up production, which the president recognises might take several months.
For six months, beginning in May, the US will, on a daily basis, release 1 million barrels of crude oil held in its Strategic Petroleum Reserve. The US imports crude oil from Russia, but it makes up a relatively small portion of US imports. President Biden’s administration banned the importation of Russian oil earlier in March.
It has to be noted that the emergency reserve release is not enough to make up for the shortfall in oil supply globally making a price-hike unavoidable, but the increased output in crude oil production in the long term should make up for this.
President Biden’s Democratic Party administration is determined to decrease the country’s reliance on fossil fuels. To make up for the fact that the US will increase its oil production, the president has also announced a plan to offer American citizens a chance to save money by adopting more eco-friendly technologies, such as the use of clean-energy for cars and introducing environmental-friendly technologies in their homes.
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