The Biden administration will release 1 million barrels of oil each day for the next six months from U.S. reserves amid high gasoline prices.
The plan announced Thursday is an effort to relieve some inflation associated with rising gasoline prices and combat other supply shortages that partly stem from Russia’s invasion of Ukraine. [bold, links added]
“This record release will provide a historic amount of supply to serve as a bridge until the end of the year when domestic production ramps up,” the White House said.
President Biden is expected to formally announce the move at a White House event Thursday afternoon.
And Biden will also call for Congress to force oil companies to pay fees for unused leases, accusing energy producers of “hoarding without producing.”
“Companies that are producing from their leased acres and existing wells will not face higher fees,” the White House said. “But companies that continue to sit on non-producing acres will have to choose whether to start producing or pay a fee for each idled well and unused acre.”
The oil and gas industry insists that obtaining a lease is merely the first step in a process that includes permitting and investigating whether there is actually any fossil fuel below the ground to extract.
The White House pressure on oil companies over “unused” leases is being echoed by Democrats in Congress, who are pushing CEOs to testify next week.
The national average for gas on Wednesday was $4.23, a penny cheaper than the day before but 62 cents higher than the month before, according to AAA. This time last year, the average price for gas was $2.86.
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