The Trump administration has ordered the release of 172 million barrels of oil from the U.S. Strategic Petroleum Reserve this week. This is the second-largest release in history, after President Biden’s withdrawal of 180 million barrels in 2022. The release aims to lower oil prices, which were over $100 a barrel on Friday due to the war with Iran.
The oil release will start next week and last for 120 days. After this, the reserves will be around 243 million barrels. This number is 41% lower than the current 415 million barrels and is the lowest since 1982, according to CBS News.
The last significant withdrawal happened in March 2022 when Biden released 180 million barrels to address rising gas prices linked to the war in Ukraine. Previously, in 2021, his administration had released 50 million barrels.
As of March 2022, the average price of a gallon of gas was about $4.23. Now, it is around $3.63, which is a 22% increase from $2.98 before the Iran conflict began. U.S. Secretary of Energy Chris Wright stated that the U.S. will replace these reserves with about 200 million barrels in the next year.
The Strategic Petroleum Reserve was created in 1975 following the energy crisis of the 1970s. It had a test sale of 5 million barrels in 1985 and again in 1990 under President George H.W. Bush. The U.S. has also released oil during natural disasters, such as 3.3 million barrels after Hurricane Ida in 2021.
Test Your Understanding
How much do you know?
