It’s said every action has its consequence. Unfortunately for American oil, that statement holds true. Following Joe Biden’s June decision to shut down the Key Stone XL Pipeline, in an effort to reach the U.S. climate goal by 2030, America is now reliant on the international import of oil from foreign nations.
Throughout Anerica, the wave of change resulting from this action has begun to be felt across the nation as gas prices surge. On November 23rd, 2021 President Joe Biden announced1 his Administration would tap into our nation’s petroleum reserve, in an effort to lower the costs.
U.S. Department of Energy’s (DOE) Strategic Petroleum Reserve (SPR) stated
“As the global economy recovers from the pandemic, oil supply has failed to increase at a pace necessary to meet demand.”
The Biden Administration announced they will use 50 million barrels of crude oil from the U.S. Strategic Petroleum Reserve. American’s economy can expect for effects and deflation to occur until mid to late December.
As Joe Biden continues to globalize America, he drives our nation full force toward the global 2030 clean energy plan, no matter the cost. While eliminating ‘domestically’ imported crude oil from the Keystone XL Pipeline did lower the “U.S. carbon footprint”, it also forces our country to rely on foreign import, driving up the national cost of oil and gasoline. Conversely, Joe Biden released the U.S. sanctions set in place by Senator Ted Cruz on the Russian pipeline, increasing the Russian economy, while benefiting America’s foreign relations.
Biden’s decision, announced on the U.S. Department of Energy’s official website states, “At the direction of President Biden, U.S. Secretary of Energy Jennifer M. Granholm authorized that 50 million barrels of crude oil from the U.S. Department of Energy’s (DOE) Strategic Petroleum Reserve (SPR) be made available.”
Secretary Jennifer Granholm (16th Secretary of the U.S. Department of Energy, Former Governor of Michigan)
“As we come out of an unprecedented global economic shutdown, oil supply hasn't kept up w/ demand, forcing families & businesses to pay the price.” stated Secretary Granholm, adding“This action underscores @POTUS' commitment to using the tools available to lower costs for families & continue our economic recovery..”
South Korea -
Reuters stated2 “A South Korean official confirmed the United States had asked Seoul to release some oil reserves.”
The [South Korean] official, told Reuters, “We are thoroughly reviewing the U.S. request, however, we do not release oil reserve because of rising oil prices. We could release oil reserve in case of supply imbalance, but not to respond to rising oil prices," the official said.”
While this is most likely to bring down costs in the short term, it isn’t a long term strategy. Will this move drive down the cost of gas in America? Will the use of American oil reserves place even greater dependence on international import for American fuel?