Economy

Strategic Petroleum Reserve: US To Release 1 Million Barrels Of Oil Per Day For The Next Six Months

As part of solutions to the rising price of oil and gas, the United States has announced the largest Strategic Petroleum Reserve release. The White House, in a statement, revealed that it will release 1 million barrels of oil per day for the next six months from the reserve.

“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 statement read.

According to an energy firm, ClearView Energy Partners, this development is the largest-ever SPR release by a factor of 3.6X.

Also, Goldman Sachs commodity analysts noted that the release by the US government would reduce the amount of necessary price-induced demand destruction, the sole oil rebalancing mechanism currently available.

“This would remain, however, a release of oil inventories, not a persistent source of supply for coming years. Such a release would therefore not resolve the structural supply deficit, years in the making”, they noted.

According to a report by the US Energy Information Administration (EIA), U.S. imports of petroleum products increased more than exports of petroleum products in 2021, resulting in a slight reduction in the net exports (exports minus imports) of U.S. petroleum product compared with 2020.

Investors King recalls that the US President, Joe Biden had earlier signed an Executive Order (E.O.) to ban the import of Russian oil, liquefied natural gas, and coal to the United States. This is in response to the ongoing war between Russia and Ukraine.

The US government also prohibited Americans from financing or enabling foreign companies that are making investment to produce energy in Russia.

“In the long run, the way to avoid high gas prices is to speed up – not slow down – our transition to a clean energy future.  We cannot drill our way out of dependence on a global commodity controlled in part by foreign nations and their leaders, including Putin. The only way to eliminate Putin’s and every other producing country’s ability to use oil as an economic weapon, is to reduce our dependency on oil”, the White House had said in a Statement.

Investors King Contributor

Share
Published by
Investors King Contributor

Recent Posts

Brent Crude at $79.38 Amid Trump’s National Energy Emergency Declaration

Oil prices remained steady on Wednesday as investors assessed the potential impact of U.S. President…

9 minutes ago

Netflix Hits 302 Million Subscribers, Surpasses $10 Billion in Annual Operating Income

Netflix ended 2024 on a high note as its global subscribers rose to 302 million…

39 minutes ago

PalmPay Explores Remittance Services as Part of Ambitious Global Growth Strategy

PalmPay, a leading Nigerian fintech company with over 30 million users and $6 billion in…

1 hour ago

Dollar to Naira Black Market Exchange Rate Today, 22nd January 2025

The dollar to naira exchange rate continues to be a focal point in Nigeria's financial…

12 hours ago

Pounds to Naira Black Market Exchange Rate Today, 22nd January 2025

The pounds to naira exchange rate continues to be a critical topic in Nigeria’s financial…

12 hours ago

MTN Nigeria Secures NCC Approval to Renew and Harmonise 800MHz Spectrum Licences

MTN Nigeria Communications PLC has received approval from the Nigerian Communications Commission (NCC) to renew…

17 hours ago