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President Joe Biden denied Wednesday that he was releasing more oil from the Strategic Petroleum Reserve as a political move to cut gas prices ahead of the midterm elections.
“It’s not politically motivated at all,” he told reporters at the White House of his decision to release 15 million barrels.
In his comments, Biden attacked oil companies for not producing enough gas and cutting prices at the pump.
“If the oil price falls, we should also see the price of the gas station at the pump fall. That’s how it should work. But that’s not what’s happening,” he said.
“Reduce the price you charge at the pump to reflect what you pay for the product. You’re still making a significant profit,” he told oil companies. Your shareholders will still do very well and the American people will get a break they deserve and get a fair price at the pump too.”
Biden outlined a three-part plan to lower gas prices as Americans prepare to go to the polls on Nov. 8 to determine which party controls Congress. Voters have repeatedly said that the economy and the high cost of living are their top concerns ahead of the election, where Republicans prefer to take control of the House.
President Joe Biden denied releasing more oil from the Strategic Petroleum Reserve as a political move to cut gas prices ahead of midterm elections
Average gas price is $3.85 a gallon, about 20 cents higher than a month ago, according to AAA
The average price of gas is $3.85 a gallon, about 20 cents higher than a month ago, according to AAA. Prices have fallen since this summer, when they were over $5 a gallon in some states in June.
Biden took credit for the drop. And he again blamed Russian President Vladimir Putin’s invasion of Ukraine for their initial turnout.
“Gas prices are falling and they keep falling again,” he said. “But they don’t fall fast enough. Families hurt.’
“I’ve done everything I can to bring down gas prices since Putin’s invasion of Ukraine pushed these prices up,” he added.
He also said he is open to releasing more oil from the US reserve if prices remain high as the cold weather season approaches.
‘We call it a ready and release plan. This allows us to act quickly to avoid oil price spikes and respond to international events,” he said.
He opposed Republican criticism that his administration had slowed down oil production.
“We need to increase US oil production responsibly without slowing or postponing our clean energy transition. Let’s debunk some myths here. My government has not stopped or slowed down US oil production. Quite the opposite. We produce 12 million barrels of oil a day. And by the end of this year we will be producing 1 million barrels a day more than the day I took office,” he said.
And even when he criticized oil companies for keeping prices high while oil prices fell, he offered them an incentive to release more crude. The president promised to buy back oil when it reached $70 a barrel to replenish the strategic reserve.
That means oil companies can invest to ramp up production now, with the confidence that they can sell their oil to us in the future at that price – $70. Refining and replenishing the reserve at $70 a barrel is a good price for businesses and it’s good value,” he said.
“So my message to oil companies is this, you are on record profits. And we’re giving you more certainty so you can act now to increase oil production now,” Biden added.
Biden’s announcement was partly in response to recent production cuts announced by OPEC+ countries. The group, which controls 40% of the world’s crude production, announced earlier this month that it would produce 2 million barrels per day – 2% of global supply.
But Biden’s move may be more symbolic than anything.
The release of 15 million barrels would not even cover a full day of oil consumption in the US, according to the Energy Information Administration.
Biden has released 160 million barrels of crude oil since March, pushing reserves to the lowest level in four decades.
The country’s Strategic Petroleum Reserve held 416.4 million barrels in the week ended Sept. 30 — the lowest level since 1984, according to Department of Energy data.
Voters entering the midterm elections face record high prices of food and other everyday items.
President Biden announced a plan on Wednesday to release 15 million barrels of oil from the Strategic Petroleum Reserve (above the reserve in Freeport, Texas)
Republicans are hammering Biden and Democrats on the high cost of living, a problem voters see impacting their daily lives.
“Look, we’re doing everything we can,” White House press secretary Karine Jean-Pierre told CNN’s Wolf Blitzer on Tuesday night. “We take this very seriously when it comes to inflation, when it comes to cutting costs. And the president will continue to do that work. That’s why the Inflation Act was so important.’
In the November election, Republicans will need a net gain of five seats to gain the House majority, and a net gain of just one seat to gain control of the equally elected Senate.
A New York Times/Siena College poll released Monday showed momentum is with the GOP: 49% said they would vote for the Republican congressional candidate compared to the 45% who said they would vote for the Democrat.