Reps. Budd, Bice Introduce Strategically Lowering Gas Prices Act
Washington, December 16, 2021
Washington, D.C. – Today, Reps. Ted Budd (R-NC) and Stephanie Bice (R-OK) introduced the Strategically Lowering Gas Prices Act.
The bill would prohibit President Biden from releasing oil from the Strategic Petroleum Reserve (SPR) until the executive orders blocking energy development on federal land are revoked.
Other original co-sponsors include: Reps. Scott Perry, Buddy Carter, Ashley Hinson, Louie Gohmert, Greg Steube, Tom Cole, and Bob Gibbs.
Rep. Budd said in a statement:
“President Biden has caused this energy crisis by blocking development of American fuel sources. That makes his recent use of the SPR nothing more than a band aid solution to a self-created problem. The best way to solve high fuel prices is for President Biden to reverse his radical environmentalist agenda and pursue an ‘all of the above’ strategy that gets us back to American energy independence.”
Rep. Bice said in a statement:
“President Biden’s actions continue to degrade our nation’s oil and gas industry and the high-paying jobs that it provides. Instead of turning to American companies to increase output, Biden used his executive power to release 50 million barrels of oil from our country’s Strategic Petroleum Reserve to help lower gas prices. That’s why the Strategically Lowering Gas Prices Act is important. This legislation would disallow the president from ordering a sell off from the SPR while executive orders or mandates are in effect blocking oil and gas leasing on federal lands. The SPR was created specifically to draw upon in times of emergency or significant shortage, not to help a president whose strategies have failed to save face with the American people.”
The Strategic Petroleum Reserve (SPR) was created in 1975 to offer a safety net for the U.S. to draw upon in times of emergency and significant shortage.
On November 23, 2021, the Biden administration publicized plans to release 50 million barrels of oil from the SPR over the coming months in an effort to reduce upward pressure on gas prices.
In the immediate aftermath of the announcement, the West Texas Intermediate (WTI) and Brent crude oil futures indexes actually rose, and the Organization of Petroleum Exporting Countries (OPEC) announced that the withdrawal would factor into their production decisions.
Since the U.S. consumes about 18 million barrels of petroleum per day, a 50-million-barrel release from the SPR will have a negligible impact.
The oil sold from the SPR will eventually need to be replaced at a much higher price than it was initially purchased for since the price of oil has increased significantly.
Taxpayers will be on the hook to finance what amounts to a political stunt which will have a very limited effect on the price Americans pay at the pump.
The Strategically Lowering Gas Prices Act would ensure that presidents only use the SPR as an emergency measure of last resort when their administration’s own actions are not negatively impacting the supply of oil and gas in the U.S.