Biden’s Dangerous Tactics Are Depleting The U.S. Oil Reserves

Biden’s response to rising gas costs has included tapping into America’s oil reserves.  The idea was that if external oil supplies were shut off, the U.S. could use the stockpile to keep the country going.  Biden administration is using the oil reserves for everything but its intended purpose.

Unfortunately, some of these reserves ended up on the export market, particularly in China.  There is evidence that Hunter Biden’s assistant was a member of the Chinese Communist Party while he was negotiating with the Chinese.  In 2017, he participated in shipping U.S. natural gas to China.  After Joe Biden was elected President, the Biden family assured business partners they would be compensated.  Biden’s conduct may be seen as traitorous or, at the very least, exclude him from the presidency.

On September 20, House Oversight Committee ranking member James Comer, R-Kentucky, sent a letter to Treasury Secretary Janet Yellen.

Comer said that not only has the President deceived the American public about his prior foreign business dealings, but he has also omitted to reveal that he had a key role in organizing a commercial agreement to sell U.S. natural resources to the Chinese while running for President.

Joseph Biden, according to Comer, was a business partner in the arrangement, had office space to work on the proposal, and the company he oversaw got millions in advance of the planned endeavor from his Chinese counterparts.  While a portion of what Comer claimed was already published in the news, the letter contained whistleblower testimonials, emails, a PowerPoint presentation from the company, and a snapshot of encrypted conversations.  These, as well as bank records obtained by Republicans on the committee, imply Biden’s participation in the scheme dates back to at least 2017.

With the 1973 OPEC oil embargo still vivid in the minds of Americans, the Strategic Petroleum Reserve was established by Congress in December 1975.  (SPR).  It was created to mitigate the effects of major energy supply disruptions.  What are the consequences of emptying the SPR, and is it still vital?

The U.S. government began replenishing the reserve, which peaked in 2010 at around 726.6 million barrels.  This is the first time since December 1984 that the level has been below 450 million barrels.  Draining the SPR has been a potent tool for the administration’s efforts to control gasoline prices, and it also marked the beginning of a “new era” of intervention by the White House.

This raises doubts about the motivations of individuals responsible for this activity.  One of the consequences of Biden’s assault on high oil prices is that it has accelerated the process of fossil investment and supply development.  Since oil prices have declined, the five major oil and gas firms have reduced their capital expenditures.  Current underinvestment in this industry is one of the reasons why oil prices are projected to experience a significant increase in the coming years.  Output from current wells is anticipated to decline precipitously.

It is vital to note that the oil supply is far more stable and inelastic than the oil demand.  This implies that putting new wells online takes time and money, even though demand might alter fast.  This occurred during the pandemic when governments quarantined their citizens and ordered them to remain inside, and this led to a temporary decline in the oil price since there was nowhere to store it.

In times of global unpredictability, removing oil from the strategic reserve is a short-sighted and risky decision that threatens America’s energy security.  To curb inflationary tendencies, Biden released a massive quantity of crude oil from the Strategic Petroleum Reserve to artificially depress fuel costs before the midterm elections.

Biden has sold more SPR on the market than all prior presidents combined, bringing reserves to levels not seen since the early 1980s. 

A nation’s ability to increase oil production swiftly is crucial, and this protective measure safeguards its economy and increases its resilience.

Biden’s actions have placed the entire nation in jeopardy.  Opponents of his approach pointed out that the Strategic Petroleum Reserve was intended to be used in an emergency, not to sway elections. 

Another of Biden’s aims may be to increase oil costs to discourage oil use and encourage the development of expensive renewable energy.

Atlas, Biden’s war on oil has not made the United States’ energy policy more efficient or the nation stronger.