Obama Releasing 30M Barrels From US Oil Reserve To Offset Mideast Turmoil, High Gas Prices
In an attempt to offset another surge in gas prices, President Obama has called for a release of 30 million barrels of oil from the U.S.'s emergency reserves.
Oil and gas prices are expected to increase due to lost oil supplies caused by troubles in the Middle East and North Africa, and more specifically the country of Libya.
According to reports by the Washington Post:
The release from the U.S. Strategic Petroleum Reserve will be the largest ever, amounting to half of a 60 million-barrel international infusion of oil planned for the world market over the next month.
Even so, the 30 million barrels to be sold by the United States represents less than two days' worth of domestic oil consumption and about three days of oil imports.
White House officials would not predict how the release will affect prices at the pump, although the move is intended to increase U.S. supplies during the peak summer driving season.
“We are taking this action in response to the ongoing loss of crude oil due to supply disruptions in Libya and other countries and their impact on the global economic recovery,” Energy Secretary Steven Chu said.
The timing brought criticism from business groups and Republican lawmakers, who accused President Barack Obama of playing politics with the country's oil reserves, which are intended to address emergencies.
Of course, a move like this is sure to cause some controversy, but we should applaud President Obama for trying something to offset gas and oil prices.
We'll have to sit back see how releasing these barrels effects the gas, oil and furthermore the economy in the coming months.