April 1, 2022 – In a bid to head off more increases in the price of gasoline at the pump, the Biden administration plans to release 1 million barrels of oil per day from the U.S. Petroleum Reserve for the next 180 days.
The withdrawals from the strategic reserve are designed to last through the summer driving season when gasoline prices are very likely to bump up against $5 per gallon. Biden also warned domestic oil companies to pick up the pace of drilling in the continental United States, reminding companies they could lose their old leases to drill on federal land if they don’t use them.
The steady economic recovery in North America, Europe and East Asia sent demand for oil up even before the conflict in Ukraine. Oil production in the United States, the world’s largest producer of energy, will take time to return to pre-pandemic levels.
