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House GOP moves to restrict presidential use of US oil stockpile

House Republicans are again seeking to restrict presidential use of the nation’s emergency oil stockpile.

THE PURPOSE OF THE STRATEGIC PETROLEUM RESERVES IS TO REDUCE THE NATION'S VULNERABILITY TO A SEVERE SHORTAGE OF PETROLEUM SUPPLY. IMAGE SHOWS DOE CRUDE OIL STORAGE TANKS IN THE FOREGROUND AT THE SUNOCO TERMINAL NEAR NEDERLAND, TX. Credit - US Department of Energy. Public Domain
THE PURPOSE OF THE STRATEGIC PETROLEUM RESERVES IS TO REDUCE THE NATION'S VULNERABILITY TO A SEVERE SHORTAGE OF PETROLEUM SUPPLY. IMAGE SHOWS DOE CRUDE OIL STORAGE TANKS IN THE FOREGROUND AT THE SUNOCO TERMINAL NEAR NEDERLAND, TX. Credit - US Department of Energy. Public Domain

House Republicans are again seeking to restrict presidential use of the nation’s emergency oil stockpile.

It all comes down to a GOP bill set for a vote Friday that would require the government to offset any non-emergency withdrawals from the Strategic Petroleum Reserve (SPR) with new drilling on public lands and oceans.

The Associated Press is reporting that Republicans are accusing President Joe Biden of abusing the reserve for political reasons to keep gas prices low, while Biden says tapping the reserve was needed last year in response to a ban on Russian oil imports following President Vladimir Putin’s invasion of Ukraine.

Biden has withdrawn 180 million barrels of oil from the oil reserve over the past few months, bringing the stockpile to its lowest level since 1983.

The Energy Information Administration (EIA0 reported a crude oil balance of 371.6 million barrels in the SPR as of January 13, after two weeks of no withdrawals of oil

Some 220 million barrels have been taken from the emergency oil reserve since November 2021 by the Biden administration to provide more crude to the marketplace and bring pump prices of gasoline down.

The administration announced late last year that it was winding down its dependence on the reserve and preparing to add to its inventory. Negotiations are already underway with US oil firms to refill the reserve, starting with a base offer of $70 per barrel.

However, with U.S. crude at just above $81 per barrel, sellers will likely be seeking more, resulting in a longer lag to replenish the reserve.

About the SPR

The federally-owned Strategic Petroleum Reserve (SPR) is the world’s largest supply of emergency crude oil. It was established primarily to reduce the impact of disruptions in supplies of petroleum products and to carry out obligations of the United States under the international energy program. 

The SPR’s oil stocks are stored in huge underground salt caverns at four sites along the coastline of the Gulf of Mexico. The sheer size of the SPR (authorized storage capacity of 714 million barrels) makes it a significant deterrent to oil import cutoffs and a key tool in foreign policy.

Besides the most recent withdrawals by the Biden administration, conditions have warranted the emergency withdrawal of oil from the reserve three other times, the last in 2011 when the President directed a sale of 30 million barrels of crude oil to offset disruptions in supply due to unrest in Libya.

Prior to the 2011 emergency drawdown, in 2005, 4eserves were released due to Hurricane Katrina, and prior to that, in 1991 during Operation Desert Storm.

US gasoline prices are near record highs after the invasion of Ukraine
US gasoline prices are near record highs after the invasion of Ukraine – Copyright International Trachoma Initiative/AFP Danny HADDAD

Today’s heated rhetoric is part of a larger fight

As most people can probably guess, the argument is all about oil drilling and climate change. Republicans say restrictions on oil leasing imposed by the Biden administration hamper U.S. energy production and harm the economy.

Democrats, on the other hand, tout a sweeping climate law approved last year as a crucial step to wean the nation off fossil fuels such as oil, coal, and natural gas. 

Biden, citing the dangers of climate change, canceled the controversial Keystone XL oil pipeline in his first days in office and suspended new oil and gas leases on federal lands. The moratorium has since been lifted, under a court order, but Republicans complain that lease sales for new drilling rights are still limited.

The Treasury Department estimates that the release of oil from the emergency stockpile lowered prices at the pump by up to 40 cents per gallon. Gasoline prices averaged about $3.50 per gallon on Thursday, down from just over $5 per gallon at their peak in June, according to the AAA auto club.

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We are deeply saddened to announce the passing of our dear friend Karen Graham, who served as Editor-at-Large at Digital Journal. She was 78 years old. Karen's view of what is happening in our world was colored by her love of history and how the past influences events taking place today. Her belief in humankind's part in the care of the planet and our environment has led her to focus on the need for action in dealing with climate change. It was said by Geoffrey C. Ward, "Journalism is merely history's first draft." Everyone who writes about what is happening today is indeed, writing a small part of our history.

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