This group brings together those who are interested in topics around oil and gas exploration, drilling, refining, and processing.

Post

Tapping the U.S. Strategic Petroleum Reserve Won’t Lower Prices At The Pump This Time Either

Energy in Depth's picture
Blog Independent Petroleum Association of America

Why does Energy In Depth – a research program of the Independent Petroleum Association of America – have a website on climate litigation and the #ExxonKnew campaign? Simple: because these...

  • Member since 2018
  • 511 items added with 835,243 views
  • Mar 3, 2022
  • 470 views

Average national gasoline prices are edging closer to record highs set in 2008, and while the president continues to assure the country he is “using every tool at our disposal” and “work[ing] like the devil to bring gas prices down,” the administration’s efforts fall short of anything that would have a meaningful impact on U.S. prices.

In fact, despite readily available solutions, the Biden administration has yet to resume federal onshore oil and natural gas leasing – ignoring a federal court ruling the pause is really an illegal ban – and is now delaying permits again as well.

Further adding to this inaction, the tool the administration keeps coming back to is to tap the U.S. Strategic Petroleum Reserve (SPR).

The Independent Petroleum Association of America has said this before, but it’s worth repeating: The solution to rising prices can be found domestically, but it’s not through the SPR. IPAA strongly opposes the use of strategic oil reserves to try to manipulate gasoline prices. Market interference makes us all more vulnerable and is counterproductive to long-term adjustments in the marketplace. A better solution is to enhance, rather than hinder, America’s leadership in natural gas and oil production. 

The ineffectiveness of using the SPR to regulate markets was demonstrated at the end of 2021. Prices fell slightly in November and December when the announcement (release 1 and release 2) took place, but by January were back up and have since exceeded 2021’s peak.

Source: AAA

The reality is that this is not a solution to lower prices. It’s a temporary band-aid at best and to the detriment of our energy security and U.S. consumers.

The post Tapping the U.S. Strategic Petroleum Reserve Won’t Lower Prices At The Pump This Time Either appeared first on .

Energy in Depth's picture
Thank Energy in Depth for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member
Discussions
Spell checking: Press the CTRL or COMMAND key then click on the underlined misspelled word.

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »