Last week, President Joe Biden said that the U.S will tap into oil reserves to hopefully ease rising gas prices. Now the ban on imports from Russia is in place. So will this do anything to help curb the rise in gas prices?
Here’s What to Know
- Tapping into these reserves is one of the few ways Biden can try to ease the rise in gas prices.
- The Biden administration opted to ban Russian imports due to the country’s invasion of Ukraine.
- He plans on releasing 30 million barrels of oil from a reserve in Texas.
- He announced this plan during his State of the Union address
- There’s a plan for other countries to also contribute, with 60 million barrels getting released worldwide.
Biden Hopes that Tapping Into the Oil Reserves will Help Curb the Rise in Gas Prices
According to the Wall Street Journal, tapping into these oil reserves is one of the few shots President Biden has at trying to curb the sharp increase in gas prices. During his State of the Union address, Biden said it would “blunt gas prices here at home.”
“I want you to know that we are going to be okay,” he added, trying to assure worried Americans.
Russia’s attack on Ukraine has sent energy prices skyrocketing, further worsening the price of gas. The Journal also reports that Russia is one of the world’s largest exporters of oil and gas. The worsening crisis overseas topped with the already worsening prices due to inflation is creating quite the scene at the gas pump. In fact, the national average has gone over $4 per gallon.
Not only will the administration try and release those 30 million barrels of oil, but 30 other countries have also committed to releasing more oil from reserves. 60 million barrels of oil in total will get released from reserves worldwide.
Of course, both the United States and Countries all over the globe are also working to increase the use of clean energy and alternatives. For now, however, people still need gas.
“The United States and 30 other member countries, supported by the European Commission, agreed to collectively release an initial 60 million barrels of oil from strategic petroleum reserves. This decision reflects our common commitment to address significant market and supply disruptions related to President Putin’s war on Ukraine,” Secretary of Energy Jennifer M. Granholm said in a statement on March 1st.
Now, leaders are hoping that this will ease some of the pressure both in the United States and abroad.