Did President Biden miss a major opportunity that could result in a catastrophic oil shortage?
President Joe Biden’s inaction on the Strategic Petroleum Reserve is causing major issues for the United States.
Canary CEO Dan Eberhart stated that the President has missed the opportunity to replenish the Strategic Petroleum Reserve at a low price, which is putting national security at risk. With oil prices soaring due to an unexpected output reduction in the Organization of the Petroleum Exporting Countries (OPEC), it is unlikely that they will come down any time soon. Eberhart believes that Biden has let a “golden window” of opportunity pass by and this will result in long-term negative effects on the American people.
It is no secret that the United States relies heavily on oil. It is used in transportation and the production of everyday goods. This is why the Strategic Petroleum Reserve is so important. When supplies are low, the reserve steps in to prevent an oil shortage that could negatively impact the economy and national security.
However earlier late last year Biden announced that he would be replenishing only a small fraction of the strategic oil reserves that he ordered released to help with “costs” before the midterm elections
Former President Donald Trump attempted to purchase oil at a low price of $24 per barrel to replenish the reserve, but Democrats blocked the move. Congress refused the measure amid broader stimulus package negotiations, and Senator Chuck Schumer (D-NY) boasted that his colleagues had nixed a “bailout for big oil.”
This time around, President Biden had the opportunity to replenish the reserve when oil prices were reasonable. However, he decided not to take action. Eberhart believes that this miscalculation will result in long-term negative effects on the economy and national security.
Democratic lawmakers lambasted the previous president for his move to replenish the reserve, but it appears that Biden is now following a similar trend – while blaming the previous administration for the same problem he is now facing. The cost of the depletion of the Strategic Petroleum Reserve is a matter of concern, as it could result in massive price hikes in essential products and devastate the economy.
Biden’s policies have not been helpful in this regard either. He has eliminated expansions to the Keystone XL pipeline and slowed federal oil lease approvals. The administration’s policies have decreased production in the oil industry, which will result in lesser oil supply to consumers. Biden has also returned to the Paris Climate Agreement, which calls for slashing worldwide emissions by half, and transition towards renewable energy. While it may be an excellent initiative, it will not bear fruit overnight as it will take time for renewable energy sources to replace oil.
The oil industry and consumers are now bearing the brunt of Biden’s inaction in replenishing the Strategic Petroleum Reserve. According to Eberhart, production and drilling have decreased, and it is more challenging to drill for oil. The rig count is also lower than what it was during the Trump administration. Lower production rates, combined with the OPEC output reduction, will undoubtedly result in higher fuel costs in the future. The effect will be catastrophic for the economy and the American people.
The depletion of the Strategic Petroleum Reserve is a serious issue that cannot be ignored. It is the responsibility of the President to strategize and ensure that the nation’s oil supply is sufficient to avoid devastating price increases in vital goods. Biden’s inaction is putting the United States at risk, and the nation cannot afford it. It is essential to take action now while there is still time to mitigate the effects of a possible oil shortage. Replenishing the reserve’s stocks will ensure that the American people can go about their daily lives with one less thing to worry about. It is time for the Biden administration to put the nation’s safety and security first by taking action immediately.
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