US President Joe Biden accused US oil companies on Thursday of enjoying record profits while Americans pay high prices for gasoline, and said companies should use the money to produce more oil or restart idle wells rather than pay investors.
He added, “This is not the right time to achieve record profits, it is time to advance the interest of your country,” noting that he directed the withdrawal of one million barrels per day from the strategic oil reserve for a period of 6 months.
And earlier, an official statement said, today, Thursday, that the administration of US President Joe Biden had approved a plan to withdraw from… strategic oil reserves.
The United States will release nearly one million barrels of oil per day from its reserves for six months, a historic volume that underscores the White House’s concern about high energy prices and supply shortages in the wake of Russias invasion of Ukraine.
The White House said President Joe Biden would invoke “Cold War powers” to encourage domestic production of minerals vital to making electric car batteries and other uses. The battery materials will be included in the list of items covered by the Defense Production Act of 1950.
The White House said in the statement that the release of the Strategic Petroleum Reserve was “unprecedented.”
“This record draw will provide a historic amount of supply to serve as a bridge until the end of the year when domestic production will rise,” he added.
Biden will request the withdrawal of up to 180 million barrels of US reserves over the coming months. He will talk about his plan at the White House at 1:30 p.m. Washington time.
Earlier this month, Biden directed the emergency withdrawal of 30 million barrels of US oil reserves and put them on the market, as part of the collective action of the International Energy Agency.
The US Department of Energy’s Office of Fossil Energy and Carbon said at the time, “This operation is part of coordinated work with 30 IEA member countries to release 60 million barrels of their strategic oil reserves.”