Staff Reports
President Biden is getting quite the lesson in oil reserves, but it seems he’s more interested in keeping those gas prices low just long enough to avoid a backlash at the polls. As the nation braces for the November 5 presidential election, the Department of Energy recently made a request to purchase 3 million barrels of crude oil for the Strategic Petroleum Reserve (SPR). This comes after fears that Biden might just raid the stockpile again, a move that could leave the SPR in worse shape than the nation’s economy on the Monday after a long weekend.
When Biden took office in January 2021, the SPR boasted a robust 630 million barrels. Fast forward to today, and that number has plummeted to around 375.4 million barrels. It’s enough to make even the most seasoned oil executive weep. Blame the largest drawdown in history, mandated sales, and the Russian invasion of Ukraine—all of which have Biden’s fingerprints all over them. If gas prices were a mood ring, they’d still be stuck on “anxiety,” but thankfully, they’re not as painful as the summer of 2022 when prices hit nearly $4.56 per gallon.
Interestingly, despite the recent low prices—averaging $3.14 per gallon in October, up from the $2.33 it was when Biden first waddled into the Oval Office—the oil trade remains a rollercoaster ride, which seems to align perfectly with the administration’s strategy. The West Texas Intermediate oil price hovered between $65 and $83 per barrel this year, while last year saw prices soaring to $80-$120. It’s almost as though the market is playing a game of chicken, just waiting to see when Biden will press the SPR panic button again.
As the DOE plays its little game of fill-the-bucket, the hard truth is staring right in the face of the administration: replenishing the SPR won’t be a fast process. Current projections suggest that if the DOE continues buying crude at its current pace and avoids more drawdowns, America won’t see the SPR restored to its pre-Biden glory for about seven more years. Who would have thought that finding oil would take longer than a government project?
Biden failed to top up oil reserves in the leadup to the election, but refilling will take years https://t.co/mlPFNlVUj6
— John Solomon (@jsolomonReports) November 8, 2024
With about $150 million left for more purchases, courtesy of an unnamed source cringing behind the scenes, the purchasing power seems precariously thin. It’s almost as if there are more obstacles getting funding for oil than there are to get a bill passed in Congress. As the DOE clings to its dwindling cash reserves like a lifeguard to a sinking raft, one has to wonder if Congress is even paying attention. After all, approving spending for oil reserves is nowhere near as captivating as debating the latest social experiment legislation.
In the end, whether through strategic purchases or politically convenient withdrawals, the Biden administration’s handling of the SPR would be laughable if it weren’t such a serious matter. With the clock ticking down to election day, Biden may have a tough time liking the numbers come November—not just in approval ratings, but at the pump, too.
