Biden to tap 15M barrels from oil reserve to ease high price; GOP calls it midterm politicking
President Obama is considering tapping as much as 15 million barrels of oil reserves in the U.S. as a way to support prices and reduce prices next year, The Hill reported Tuesday.
In addition to that, the U.S. Army Corps of Engineers could help pump some oil out of the ground using “enhanced drilling techniques,” the report said — a move which would make it easier for the government to access the oil.
The plans, the Army Corps website said, were first reported in The Wall Street Journal.
“The president’s goal is to use the nation’s reserves in a way that reduces the price of gasoline in 2016 as the peak and the peak oil supply both get closer,” said former White House press secretary Jay Carney earlier this month.
“We need a strong national response to keep global oil demand from dropping out of line and keeping prices high.”
That oil reserve, though, is just part of the issue, the paper noted.
Carney said the White House will use the 15 million barrels to make sure that the U.S. is at the same oil production capacity as Venezuela.
“That is a measure that they’re looking to use the reserves to provide a back-up plan for the oil production,” he said, according to the Hill report.
What is the issue:
The U.S. and other nations that have been running on crude oil this winter have been cutting back to ensure gas stations are selling gas for less than $3.
But as the winter wore on, U.S. oil production has been dropping as refiners have cut back on maintenance and maintenance is down.
In addition, the OPEC cartel has been cutting exports as it has pushed oil prices higher to keep global demand from falling out of line.
And while China was the world’s biggest oil consumer last year, it had a much smaller refining capacity than this. As a result, Chinese refiners have decided to continue cutting back on purchases of fuel.
The Obama administration is considering tapping 15 million barrels as a way to support