President Biden has ordered the National Strategic Petroleum Reserve to release 1 million barrels per day for the next six months in order to drive down the cost of fuel. It’s an unprecedented release from the U.S. stockpile — representing about 5% of all U.S. demand. Biden also warned U.S. oil producers they could face fines if they don’t pump on land they’ve leased from the federal government.
President Joe Biden: “Right now oil and gas industry is sitting on nearly 9,000 unused but approved permits for production on federal lands. There are more than a million unused acres they have a right to pump on. Families can’t afford that companies sit on their hands.”
In response, the Center for Biological Diversity said Biden’s moves “will only deepen our dependence on fossil fuels and open the floodgates to more oil and gas extraction when we should be going in the opposite direction.” Biden also accused U.S. oil companies of raking in record profits while gouging consumers at the gas pump. A new report by Oil Change International projects U.S. oil and gas companies could collect as much as $126 billion in windfall profits this year.