The Biden administration has continued to deplete the SPR of emergency oil barrels in an effort to reduce gasoline prices.
The Department of Energy has ordered the release of an additional 20 million barrels for sale, according to the White House.
The DOE released the following statement:
“The United States Dept. of Energy’s Office of FECM has released another Notice of Sale for 20 million more barrels of oil from the SPR. This notice is part of Pres. Biden’s plan to sell crude oil from the SPR in order to manage the severe market supply disruption that has been caused by Vladimir Putin’s war on Ukraine and assist American families to save money on their energy bills.”
“The President’s decision is to release a million barrels of SPR crude oil every day for six months. This is the largest amount of crude oil supply ever delivered to the US economy, which will continue until October 2022. “
“The DOE intends to sell 2.8 million barrels of the sour crude oil and 17.2 million barrels of sweet crude oil from the SPR, a total of twenty million barrels, between September 16, 2022, and Oct. 21, 2022. This notice must be accepted by 10:00 a.m. Central Time on Aug. 2, 2022. Successful offerors will be contacted by August 11th, 2022.”
The original goal of the SPR was to keep a certain amount of oil in case of a natural disaster or an attack on the country, but the administration determined that this was a superior option than simply searching for more oil on US soil.
“It is the FIFTH TIME Joe Biden has sold oil from the SPR. Pres. Biden should empower our American workers and unleash American energy rather than dipping into emergency reserves. We are prepared, willing, and more than able to do so,” tweeted Rep. Pete Sauber (R-Minn.).
There are also concerns about where the oil is going once it leaves the SPR. The House Republicans are looking into whether some of these barrels are being exported to China, according to RedState’s Bob Hoge. Earlier this month, 950,000 barrels were delivered to Unipec, which is a division of China Petrochemical Corporation and a Chinese government-owned firm. It’s concerning as a matter of principle that such an arrangement would be possible even considering how small the amount is.
On Tuesday, the White House said that “125 million barrels have already been sold.”