President Biden announced Tuesday that his administration was releasing 50 million barrels of oil from the Strategic Petroleum Reserve to help combat rising gas prices — hours before millions of Americans are expected to hit the road for Thanksgiving.
“American consumers are feeling the impact of elevated gas prices at the pump and in their home heating bills, and American businesses are, too, because oil supply has not kept up with demand as the global economy emerges from the pandemic,” the White House said in a statement. “That’s why President Biden is using every tool available to him to work to lower prices and address the lack of supply.”
The White House said the release had been coordinated with at least five other major energy-consuming nations — China, India, Japan, South Korea and the United Kingdom — and followed “weeks of consultations.”
Out of the 50 million barrels, 32 million will be released in the next few months and will return to the reserve in the years ahead, the administration said. The other 18 million will be released as part of an acceleration of an oil sale already authorized by Congress.
Americans used an average of 20.7 million barrels a day during September, according to the Energy Information Administration, meaning that Tuesday’s release equals about two-and-a-half days of additional supply.
“The President stands ready to take additional action, if needed, and is prepared to use his full authorities working in coordination with the rest of the world to maintain adequate supply as we exit the pandemic,” the White House said.
The announcement comes one week after Biden asked the Federal Trade Commission to look into whether oil and gas companies were involved in “illegal conduct” in order to keep prices up, noting “mounting evidence of anti-consumer behavior”.
“The bottom line is this: gasoline prices at the pump remain high, even though oil and gas companies’ costs are declining,” Biden wrote in a letter to FTC Chair Lina Khan. “The Federal Trade Commission has authority to consider whether illegal conduct is costing families at the pump. I believe you should do so immediately.”