President Joe Biden will have depleted the Strategic Petroleum Reserve (SPR) to a 40-year low by the end of October, as per Industry Experts
Before Biden took office, the SPR held approximately 638 million barrels of oil. However, at the current rate of release, America’s oil reserves will be depleted by 40% in just a few weeks.
“Since December 1984, the level has never been lower than 450 million barrels — until now,” according to a Forbes report. According to the Department of Energy, the reserve’s maximum capacity is 714.
During the 1973 energy crisis, former President Gerald Ford established the SPR in 1975.
The deficit in oil reserves is notable since gas prices are skyrocketing under Biden’s leadership, who issued the SPR during an election year to ostensibly protect Democrats’ chances of retaining control of the House and Senate.
Much of the country’s energy crisis results from the president’s policies, such as his campaign promise to limit oil drilling. The Biden administration has raised private and public financing costs for oil drilling, halting drilling on public lands, and canceling the Keystone pipeline in the last two years.
Under the current administration, replenishing the oil reserves will be costly. On October 5, 2020, crude oil prices were around $43.00 per barrel. The price was just under $89.00 per barrel on Monday. Taxpayers will bear the difference if Biden replenishes the reserve after the election.
OPEC cut two million barrels per day on Wednesday.
According to experts, the rising price of oil has fueled 39-year-high inflation, costing American workers $5,520 in 2022. As per a Heritage Foundation study, Americans have lost $4,200 in annual income since Biden took office.