Page 8 - NorthAmOil Week 42 2022

NorthAmOil POLICY NorthAmOil

US President Joe Biden
is under pressure as
midterm elections
approach.

More SPR releases possible, Biden

confirms, as midterms loom

US THE administration of US President Joe Biden refill the reserve once the price of oil has been
has announced another 15mn barrels of oil will lowered to $70 per barrel. In early trading on
be sold from the Strategic Petroleum Reserve October 20, West Texas Intermediate (WTI)
(SPR), with the president confirming that more prices were almost $87 per barrel.
releases may occur in an attempt to rein in the Biden also called on oil companies to pass on Biden said the
retail price of gasoline. some of their profits to consumers.
The midterm Congressional elections are Profits at the six largest publicly traded oil government
looming on November 8 and US voters typically companies topped $70bn in the second quarter,
vote on the basis of their cost of living. Inflation Biden said, and that the companies had spent would buy oil to
has been high. Americans are also especially sen- $20bn on buybacks in the first half of the year.
sitive to the price of gasoline, although it is lower “My message to the American energy compa- refill the reserve
than in June. nies is this: You should not be using your profits once the price
Global oil supply disruptions have been exac- to buy back stock or for dividends. Not now. Not
erbated since Russia invaded Ukraine in Febru- while a war is raging. You should be using these of oil has been
ary and as economies have ramped up following record-breaking profits to increase production
the pandemic. and refining,” Biden said. “So far American com- lowered to $70
The US Department of Energy (DoE) had panies are using that windfall of profits to buy
already announced that around 1mn barrels back their own stock, passing that money on to per barrel.
would be released from the SPR over six months, their shareholders, not to consumers.”
and this latest release completes that promise. US gasoline prices are currently some $3.85
“I’ve told my team behind me here to be pre- per US gallon on average. Biden said that gaso-
pared to look for further releases in the months line prices should be lower, and on a par with the
ahead if needed,” said Biden. “We’re calling it a drop in oil prices of 30% since a June high. If oil
ready and release plan. This allows us to move companies were not earning record profits and
quickly to prevent oil price spikes and respond were only earning what they have made in the
to international events.” last 17 years, Americans would pay $0.60 less at
Biden said the government would buy oil to the pump, he said.™

P8 www. NEWSBASE .com Week 42 20•October•2022