- Apr 28, 2015
- Reaction score
- Third Coast
- Political Leaning
Biden announces historic oil reserve release and presses oil companies to do their part to reduce gas prices
President Joe Biden on Thursday announced an unprecedented release of oil from US reserves and several steps his administration is taking to punish oil companies for not increasing production from unused leases on federal land.
(CNN)President Joe Biden is announcing an unprecedented release of oil from US reserves and taking steps to punish oil companies for not increasing production from unused leases on federal land, the White House says.
"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 White House said. "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."
The release would amount to 180 million barrels of oil.
The President is also calling on Congress to "make companies pay fees on wells from their leases that they haven't used in years and on acres of public lands that they are hoarding without producing." "Companies that are producing from their leased acres and existing wells will not face higher fees," a fact sheet released by the White House reads, "but companies that continue to sit on non-producing acres will have to choose whether to start producing or pay a fee for each idled well and unused acre."
Biden also will issue a directive to invoke the Defense Production Act to spur domestic production of critical minerals needed to manufacture batteries for electric vehicles and long-term energy storage.
The move from the White House adds critical minerals such as lithium, nickel, graphite, cobalt and manganese to the list of items covered by the 1950 Defense Production Act, a Korean War-era law allowing the President to use emergency authority to make large orders of a certain type of product or expand productive capacity and supply. It will allow the administration to support the production and processing of these critical minerals needed for a clean energy transition.
The Department of Defense will implement this authority, according to the White House, and will do so in consultation with tribal communities and using strong environmental, labor, and community standards.
It looks like Joe Biden has a substantive and actionable plan to lower gas prices:
1] Six months of historic strategic reserve releases
2] Penalties for Oil companies that are not using their drilling licenses.
In addition, he also is implementing an emergency Defense Production Act order to re-classify & produce more critical minerals, which will also assist in our transition to clean energy.
1] Taxing Oil Companies that sit on their licenses without producing. This will produce both more oil and more tax revenue. A double win!
2] Making us both more sufficient in critical minerals, thereby moving forward the transition to cleaner energy.