Biden bets a million barrels a day will drive down soaring gas prices – what you need to know about the Strategic Petroleum Reserve

  The Biden administration on March 31, 2022, said it plans to release an unprecedented 180 million barrels of oil from the U.S. Strategic Petroleum Reserve to combat the recent spike in gas and diesel prices. About a million barrels of oil will be released every day for up to six months.

  If all the oil is released, it would represent almost one-third of the current volume of the Strategic Petroleum Reserve. It follows a release of 30 million barrels in early March, a large withdrawal until the latest one.

Soaring crude prices make the cost of pretty much everything else go up too because we almost literally eat oil

  The price of oil has been spiking in recent weeks in response to concerns that the war in Ukraine will significantly reduce supply. But what happens in oil markets never stays in oil markets.

  The price of U.S. crude oil jumped to a 13-year high of US$130 on March 6, 2022. It has come down but has been trading above $110 since March 17. That’s over 60% higher than it was in mid-December before fears of a Russian invasion began to mount.

The Trump budget is full of giveaways to coal and oil companies

  This week, the Trump administration released its proposed budget for funding the federal government in 2019. With extensive cuts to health care, schools, scientific research, and nutrition assistance, Americans across the country would suffer under this proposal. However, there are some clear winners who would benefit from the Trump budget, particularly, the fossil fuel industry.

  After receiving billions in tax cuts at the end of last year, oil and gas companies can expect another year of record-breaking profits. While Exxon alone received $5.9 billion in tax breaks, companies that do oil exploration can expect an additional $190 billion in profits. And Wednesday, the second-largest coal company in the country, Arch Coal, announced the new tax plan would lower their tax rate to “effectively zero.” To pay for these giveaways, the Trump budget proposes cutting several programs that enforce pollution laws, fund clean energy innovation, and protect outdoor places. Trump’s cuts effectively subsidize oil, gas, and coal companies, severely hamper renewable energy growth, all while weakening protections for public health and the outdoors.