Madison Kwiecinski 

News Editor 

Mvk5945@psu.edu 

On Tuesday, November 23, 2021, President Joe Biden ordered for a record breaking release of oil from America’s strategic reserve. This action is intended to decrease the price of oil and help American families at home by decreasing gas prices before winter holiday travel.

The U.S. is releasing 50 billions barrels of oil from the national reserve in two ways. 32 million barrels will be released in the upcoming months, and replaced in the reserve over the next several years as prices fall and supply can once again be met. The additional 18 million barrels will be used as an acceleration into the next several months of a sale of oil that Congress had previously authorized.

The American strategic reserve is a stockpile of oil for emergency events, such as natural disasters or natural security events. The stockpile is maintained by the Energy Department, and is largely stored in caverns along the Texas and Louisiana Gulf Coasts. The stockpile is supposed to currently contain roughly 605 million barrels of petroleum. 

According to the American Automobile Association, gas prices are currently set around $3.40 per gallon, which is over a 50 percent increase in gas prices from one year ago. The government is set to start moving barrels into the market beginning in around mid December, though gasoline price changes usually lag slightly behind changes in the cost of oil. 

“While our combined actions will not solve the problems of high gas prices overnight, it will make a difference,” President Biden promised in remarks at the White House. “It will take time, but before long you should see the price of gas drop where you fill up your tank.”

The U.S. is not alone in releasing oil from the national reserves in an attempt to bring down gasoline prices in the wake of the pandemic. Shortly following the U.S. announcement, India stated they will be releasing 5 million barrels from their own strategic reserve. The British government has confirmed they will also be releasing up to 1.5 million barrels from their stockpile. 

In a statement released from the White House briefing room it states, “As a result of President Biden’s leadership and our diplomatic efforts, this release will be taken in parallel with other major energy consuming nations including China, India, Japan, Republic of Korea and the United Kingdom.” The statement went on to explain that this agreement to all collectively release oil into the global market took weeks of consultations, and that the effects are already being felt on oil prices. It also stated, “Over the last several weeks as reports of this work became public, oil prices are down nearly 10 percent.” 

The dramatic increase in gas prices is being considered as an indirect effect of the COVID-19 pandemic, as oil and gas companies are no longer prepared to currently meet the same level of demand they were prior. Due to COVID-19 people were traveling less, and typically spending more time inside, decreasing the overall need for gas. Now, as the holiday season approaches with many borders reopened and people ready to travel, these companies need to once again increase supply to meet the current level of demand. 

The statement from the White House also read, “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 Biden administration is also currently concerned that there is “mounting evidence” to suggest that a decline in oil prices is not consistently translating to lower gas prices at the pump. A week prior to announcing the release of oil from the reserve, the President asked the Federal Trade Commission to examine what is going on within the oil and gas markets, and to consider “whether illegal conduct is costing families at the pump.”