Biden to Pay $80 Per Barrel to Refill Oil Reserves After Democrats Blocked Trump at $24
After depleting our Strategic Poil Reserve by giving it away to countries like China, we are now hurting.
Since July, the Biden regime has been bleeding oil by sending it overseas to Europe and China.
After consultation with allies and partners, the President will announce the largest release of oil reserves in history, putting one million additional barrels on the market per day on average – every day – for the next six months. The scale of this release is unprecedented: the world has never had a release of oil reserves at this 1 million per day rate for this length of time. This record release will provide a historic amount of supply to serve as bridge until the end of the year when domestic production ramps up.
Well, we haven’t ramped up domestic production like they claimed was going to happen. Instead, it looks like we’re just going to buy back oil from other countries to replenish the loss and we’re going to end up doing so at the price of $80 per barrel. President Trump wanted to replenish the reserves back when the price was lower at $24 per barrel, but Democrats raised hell about it and wasn’t going to let him do anything good. They needed to make sure that he did as little good for the country as possible so that he didn’t have anything to brag about.
Bloomberg News reported,
The Biden administration is considering replenishing the Strategic Petroleum Reserve when oil dips below $80 a barrel, just two years after Democrats blocked former President Donald Trump from filling the reserve at a fraction of that price.
Biden in March ordered the release of a record 180 million barrels of oil from the reserve in an attempt to stem supply shortages and the rapid rise of gasoline prices in the US following Russia’s invasion of Ukraine. The administration now is looking to protect US oil-production growth and prevent crude prices from plummeting, according to people familiar with the matter.
Trump in March of 2020 was looking to stabilize the oil industry after [C-V-D] hit in 2020 and crushed global petroleum demand. With oil at the time priced at about $24 a barrel, Republicans proposed spending $3 billion to fill up the reserve. But the idea became a political football in larger negotiations on trillions in coronavirus relief, with Senate Democratic Leader Chuck Schumer proclaiming that his party had blocked a “bailout for big oil.”
That decision effectively cost the US billions in potential profits and meant Biden had tens of millions of fewer barrels at his disposal with which to counter price surges.
It also will take more oil to fill the reserve than two years ago. In March 2020, the reserve had 634 million barrels stored out of a capacity of 727 million barrels. After a record drawdown last week, the reserve is down to 442 million barrels, its lowest level since 1984.