President Biden announced a series of energy-related actions and policy agenda items in an address yesterday, according to The Hill.
Releasing oil: Although gas prices have decreased since the summer peak, President Biden hopes to accelerate the price drop by releasing more than 15 million barrels of oil from the Strategic Petroleum Reserve in December—part of a previously scheduled release.
Increasing production: After making this announcement, the president called for continued responsible oil production as the transition to clean energy continues. According to the White House, the U.S. is on track for record oil production in 2023.
- “We need to responsibly increase American oil production without delaying or deferring our transition to clean energy,” said President Biden.
Stabilizing prices: President Biden also promised to purchase oil to refill the Strategic Petroleum Reserve once it reaches $70 per barrel, to keep oil prices competitive.
- “That means oil companies can invest to ramp up production now with confidence that they will be able to sell their oil to us at that price in the future,” President Biden said. “Refining and refilling the reserve at $70 [per barrel] is a good price for companies, and it’s a good price for taxpayers.”
Fixing permitting: President Biden also called on Congress to pass energy permitting reform, which would speed up the review process for energy projects that require permits.
Our take: “It was a bit of a surprise to hear the president acknowledge the critical need for permitting reforms and increasing domestic production, but that is exactly what we have been urging him to do,” said NAM Vice President of Energy and Resources Policy Rachel Jones.
- “Manufacturers rely on affordable, reliable and diverse energy to strengthen our global leadership, and we need policymakers to follow through on commitments to increase domestic production and streamline the permitting processes to ensure that we have a secure energy future.”