The Energy Department will start buying oil to refill the U.S. Strategic Petroleum Reserve at a price below $96 per barrel, the department announced today. Earlier the government said it would be lower than $72 a barrel, while $96 per barrel is the average price it was sold for over the past year that the Biden Administration has been draining the Strategic Petroleum Reserve.
The replenishment of the nation’s emergency fuel reserve will start with a repurchase of about 3 million barrels of oil.
“This initial step to fulfilling the President’s replenishment strategy follows his historic release from the SPR to address the significant global supply disruption caused by Putin’s war on Ukraine and provide a wartime bridge for domestic production to increase. The releases have helped lower gas prices for American families. National retail gas prices are now the cheapest since September 2021 and are down by over $1.80 per gallon since their peak in June 2022. DOE must receive bids for this notice no later than 10:00 a.m. Central Time on Wednesday, December 28, 2022,” the department announced. Deliveries will be expected by February.
The solicitation is posted to FedConnect, Sam.gov, and SPR websites. The Strategic Petroleum Reserve has been drained by the Biden Administration to the lowest level since 1986, and was timed to try to improve the fortunes of Democrats in the midterm elections by helping to drive prices for consumers down.
I guess Traitor Joe couldn’t interest his Chinese overlords in any more oil from the SPR … for now …
Democrats blocked former President Trump from filling the reserve when oil was hovering around $24 per barrel,” reports Bloomberg.
How? Certainly we’re not drilling with deb haaland and commander poopy pants in charge. Hmmmmm maybe what we are seeing is a realization that draining the reserve was an incredibly bad idea. Crazy joe left us with our cheese in the wind. We deserve what we got comin’
That’s great news. Now they can use the oil to make electricity to run the electric vehicles.
That’s not exactly the way it works. Down here we use nuclear or coal. Some use water. Some use wind. Some even use solar. I’m not sure they’re ever in the history of mankind was there ever a gasoline-powered generator of any size. Oh I use it in my Honda in my RV so I guess I’ll give you that. I’m glad he’s doing it but I wish he would wait a month or two for the following gas prices to hit rock bottom. Actually the timing might be right because of we get a bad winter and heating oil goes up like it always does then that will give the cartel an excuse to raise prices.
You can bet that the ‘winning bidders’ will not be supplying oil that originated in the United States…..
More money and jobs going to foreign countries that hate us.
When Trump wanted to cap it at a much lower cost, the Democrats balked.
Now that a Democrat has nearly depleted it, and the prices are much higher, fill ‘er up.
Grandpa blew this, too. I thought he was against oil company profits. Is he getting his usual 10%?
And if Biden used the reserves “to lower gas prices,” the same logic would tell him that filling the reserves will raise prices again.
Price per barrel right now is about 74 bucks. It’s not like we’re sending over plane loads of cash to pay for this oil like Obama paid the terrorists in Iran. Prices at the pump will continue to go down over the next month or so. What you need to realize is that even if barrel oil was $200, the price at the pump would only be about $5.50. lower barrel prices doesn’t necessarily mean lower prices at the pump. Yes those prices will go up and down but probably not to your satisfaction.
It makes me feel so much better with “geniuses” like Forkner around to explain how all this works… never mind the large number of communities in Alaska where electrical power is derived from large diesel fuel generators.
Alaska is small potatoes. This story has global implications. Stop thinking so small.
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