The U.S. Department of Energy recently reported that the level of U.S. strategic petroleum reserves has fallen to its lowest level in four decades.
Crude oil inventories in U.S. emergency reserves fell by 7 million barrels in the week to September 16 to 427 million barrels, down from around 600 million at the start of 2022. It looks like the United States has dipped massively into its strategic oil reserves in 2022.
Note that last year, US President Joe Biden released millions of barrels of oil three times in order to lower the price of gasoline.
The American president, faced with record inflation undermining his popularity, announced on March 31, 2022 that the United States would draw 1 million barrels a day from strategic oil reserves for six months. Some 150 million barrels were thus released. The move brought short-term success for Biden who has sought to lower fuel prices ahead of the midterm elections scheduled for November in the United States, although it is unclear whether it will have an impact on Democratic votes.
According to the American economic magazine Forbes, the reduction of the strategic oil reserves of the United States was a political decision. The US government, which has repeatedly stressed the importance of reducing carbon dioxide emissions, has sought to tap millions of barrels of oil from its strategic reserves in order to drive down the price of fuel. Joe Biden’s decision caused carbon dioxide emissions to rise.
On the other hand, American experts warn that by decreasing the level of strategic oil reserves, the United States does not have the capacity required to deal with possible crises.
While the giant Gazprom announced to the Engie group that gas deliveries would be suspended from this Thursday, in the face of the energy crisis and to end dependence on Russian gas, the member countries of the European Union are multiplying the alternatives.
In that line, Republicans have stepped up their pressure against Biden’s administration and its energy policies, saying the White House has depleted the country’s strategic oil reserves in order to drive down fuel prices, but that hasn’t happened. did not have the expected effect.
In a letter to US Energy Secretary Jennifer Granholm, noted that a coalition of Republican lawmakers have demanded that the Biden administration be held accountable for the dwindling stockpile of oil in US strategic reserves.
At the start of the 2022 academic year, Europe is once again facing many challenges. Starting with the return of inflation approaching double digits. Economy, defence, climate, enlargement… the European Union has no shortage of projects for the coming months.
U.S. strategic oil reserve inventories have always gone up and down over time, but since December 1984, the level of oil in U.S. reserves has never been less than 450 million barrels.
Referring to Biden’s decisions on oil, The Wall Street Journal said decreasing oil storage in US strategic reserves could prove a failed strategy.