The Strategic Petroleum Reserve came into being at a time when the United States was being held hostage to the whims of oil-producing nations that sought to deprive this country of the fossil fuels it needs to function as the world’s most advanced nation.
We dug huge caverns and filled them with petroleum to hold in case we faced existential threats.
Well, we are facing them now with Russia going to war with Ukraine and with the price of energy skyrocketing to levels never before seen. President Biden has announced a plan to release 1 million barrels of oil each day into the marketplace for the next six months to help Americans fight the rising cost of energy.
I believe the time is right for such a move, even though in the past I have been skeptical of plans to use the SPR as an inflation-fighting weapon.
Those of us depend on fossil fuels to power our vehicles are feeling an incredible squeeze on household budgets. Will the SPR release make a huge difference? Probably not immediately. My own sense always has been with energy price spikes is that fuel prices zoom upward only to creep ever-so-slowly back down. Oil companies seek to boost profits quickly and are reluctant to let go of them even after they rake in the cash caused by the excessive costs they pass on to customers.
The Russians do produce a lot of oil. That supply is being jeopardized by the U.S.-led economic sanctions enacted after Russia invaded Ukraine. Thus, if we have the Strategic Petroleum Reserve standing by to use in case of emergency, then by all means we ought to use it.
To that end, President Biden is seeking to deploy a powerful weapon at his disposal.