Biden: ‘We will release 1 million barrels of crude a day for six months’ – Call on oil companies to increase production

LAST UPDATE: 22.25

US President Joe Biden announced the release of 1,000,000 barrels of crude oil per day from US Strategic Petroleum Reserves (SPR) per day for the next six months on Thursday night (Greek time) in order to squeeze fuel prices in his country. , but also internationally, in the midst of the energy crisis triggered by the Russian invasion of Ukraine and the Western sanctions against Moscow that followed.

“This is a time of consequences and danger for the world and pain for American families,” Biden told the White House, vowing to “relieve households.”

“It’s also a moment of patriotism,” he said.

Mr Biden has criticized US companies for failing to respond to calls for increased oil production, saying it was in their best interest to raise prices.

He even referred, without naming him, to the CEO of the energy sector, who said in a private conversation that he is not interested even if the price of the barrel reaches $ 200.

In this context, he declared, as the second pillar of his plan to reduce fuel prices, that companies that have licenses for oil fields and do not act to increase production will pay a high monetary price.

“This is not a time to sit idly by on record profits or pay dividends to investors, but a time to increase oil production,” Biden said, adding that his government would do everything in its power. to increase US crude production.

The head of state also called on Congress to pass legislation that would speed up the “green transition” in the country with equipment that will be produced within the US, in order for the country to increase its self-sufficiency in this field.

The American president devoted a large part of his statement to the issue of increasing fuel prices for the average family in the country, which he stressed that he understands, hence takes the measures he announced.

He called Russian President Vladimir Putin a “dictator” and stressed that he or any other leader in his own right should not be allowed to intimidate and blackmail the international community, including through energy resources.

“Think how much better it would be if Europe were not dependent on Russian energy resources,” Biden said.

Biden’s release of 180 million barrels equals about two days of global demand and marks the third time Washington has exploited the SPR in the last six months.

It will cover most of the oil exports to the United States from Russia that Biden banned this month. Russia typically produces about 10% of the world’s crude, but accounts for only 8% of US liquefied fuel imports.

However, the release will fall short of the loss of about 3 million bpd of Russian oil, which the International Energy Agency (IEA) estimates will be caused by Western sanctions and as global buyers avoid it.