Nonetheless, the SPR is executing at a speed that is about twice that level.Īnd those actions are helping mitigate the Putin price hike. There is no precedent for this level of drawdown, and one major bank estimated in March that the maximum drawdown capacity of the SPR was only 500,000 barrels per day. It is, as one leading analyst noted at the time of announcement, “hard to overstate the scale of this intervention.” And the Department of Energy is delivering. ![]() With these releases, the President has executed a drawdown of unprecedented size and scope to respond to the energy market disruptions posed by Russia’s invasion, and his actions are having an impact. The President and his team engaged in round-the-clock diplomacy resulting in the release of 240 million barrels from the United States as well as allies and partners globally to meet this moment. The President’s historic action is in addition to agreements with International Energy Agency member countries for collective action to address the market disruption caused by Russia’s invasion of Ukraine. Since the President authorized the historic release of one million barrels per day from the SPR earlier this spring, the Department of Energy has already sold more than 125 million barrels into the market, including nearly 70 million barrels that have already been delivered to purchasers and additional barrels planned to be delivered to customers in the weeks and months to come. These actions will enable the Administration to continue the work of shoring up supply and bringing prices down. The Administration is also announcing steps to repurchase oil for the SPR in future years, likely after FY2023, to help stabilize the market and encourage near-term supply. A new analysis from the Department of the Treasury estimates that these releases, along with coordinated releases from international partners, have reduced gasoline prices by up to about 40 cents per gallon compared to what they would have been absent these drawdowns. Today, the Biden Administration announced that it is releasing the next Notice of Sale to supply additional barrels of crude oil from the Strategic Petroleum Reserve (SPR) onto the global market, building on the more than 125 million barrels of oil that have already been sold. Treasury Department Estimates that Strategic Petroleum Reserve Releases by President Biden and International Partners Reduced the Price of Gasoline by up to 40 Cents Per Gallon Get Involved Show submenu for “Get Involved””. ![]()
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