Biden orders 1 million barrels to be released from US reserves as a “war bridge” to higher domestic production

President Joe Biden will authorize the release of one million barrels a day of oil from the US strategic oil reserves over the next six months as a “war bridge” for expected higher domestic production, White House officials said.

Mr. Biden is expected to make the announcement on Thursday as part of a plan to combat soaring energy prices in the wake of Russian President Vladimir Putin’s unprovoked invasion of Ukraine and the supply cuts caused by US sanctions.

“The President has said from the start that standing up to Putin’s aggression would never be painless, but he has pledged to do whatever he can to help American families,” a White House official said. briefing the reporter on Mr. Biden’s plan.

The official said the “historic” release from US reserves will be coordinated with similar releases from allies and is intended to “immediately prop up global supplies” until an expected increase in domestic oil production offsets the deficit created by Russian oil’s removal Market.

Proceeds from reserve sales will be used for replenishment when prices fall, the official added.

Mr. Biden is also expected to announce a proposal to incentivize oil companies that hold well leases on public lands to use those leases by proposing “to get companies to charge idle wells on state land and per acre.” to pay public land without producing”.

“We know it will be months – not days – for this production to come online, including through the kind of actions the President is proposing today.” We need to bridge this additional supply, so the President is announcing a historic release of one million barrels per day over the next six months from the Strategic Petroleum Reserve,” the official said. “These casks will provide a bridge to additional US production during the war and other production we expect later this year.”

The official added that the White House believes that “there should be consequences” if a company sits on unused land or wells through Mr. Biden’s proposed “use it or lose it” policy.

“Some industry leaders have said it doesn’t matter what the price point is, they won’t produce more – we don’t think that’s the right thing, we think these companies need to get stronger.” They said.

Asked if Mr. Biden consulted with Opec members like Saudi Arabia before deciding to release more oil from US reserves, a National Security Council official said he had “always been in touch with relevant partners “.

“The President has made it clear that he will act if necessary to provide additional oil supply to calm turbulent markets. and when there is an oil disruption like the one we are facing today,” they said. “We know consumers need relief now and that’s why the President acted.”

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