On Sunday, The Daily Caller reported that the three times that President Biden has released fuel from the Strategic Petroleum Reserve the price of gasoline has gone up. I don’t think his solution is working.
The article reports:
Biden ordered a 50-million-barrel SPR release in November, a 30-million-barrel release on March 1 and a 180-million-barrel release on March 31, saying the “historic” actions would ease pressure felt by Americans at the pump. But marketplace and government data analyzed by The Daily Caller News Foundation paint a different picture.
On Tuesday, the average price of gasoline reached an all-time high of $4.59 per gallon, according to AAA data, while domestic oil prices remained above $110 a barrel, far higher than their 2015-2021 average of $53.15 per barrel and 2021 average of $68.14 a barrel, Federal Reserve data showed.
Release 1: Nov. 23, 2021
Oil price: $76.75 a barrel.
Gasoline price: $3.40 per gallon.
The article concludes:
Finally, Biden announced the largest release to date on March 31, ordering the DOE to release 180 million barrels of oil from the SPR between April-September. The president said the move would provide a “historic amount of supply for a historic amount of time” and act as a “six-month bridge” to the fall.
“The action I’m calling for will make a real difference over time,” he said during remarks titled “Actions to Lower Gas Prices at the Pump for American Families.”
Biden then predicted gas prices would fall 10-35 cents a gallon.
However, the price of oil declined substantially from $107.82 a barrel on March 30 to $100.28 per barrel on March 31. Oil prices remained near that level through April and early May before increasing again and hitting $114.20 per barrel on May 16.
Gasoline prices followed a similar trajectory as oil prices, declining through April before skyrocketing in mid May and hitting multiple all-time highs.
Those of us who studied economics at some point are familiar with the law of supply and demand. Most Americans understand that if the government opens up drilling in America, we can again be energy independent and enjoy the benefits of that independence. Aside from lower prices at the gas pump, businesses are more likely to relocate to places that have cheap, dependable energy. We saw that during the Trump administration. The Biden administration’s war on fossil fuel has cost Americans dearly at the gas pump, in international relations, and in the ability to attract manufacturing jobs to America. The Biden administration is destroying America’s middle class and the American economy in the name of an industry that has not yet been proven to work. As Americans face rolling blackouts this summer, I hope many of them will reconsider some of their recent voting habits.