Biden will release up to 180M barrels from strategic reserve
Thursday, March 31, 2022
The White House announced plans on Thursday that it would release up to 180 million barrels of oil from a strategic reserve amid growing political pressure to bring down energy prices, according to The New York Times.
President Biden plans to release one million barrels of oil a day for six months, which represents roughly 5% of American demand and 1% of global demand at a time when Russian oil exports are down about three million barrels a day.
The decision will be the largest release from the Strategic Petroleum Reserve since it was established in the early 1970s.
Oil industry executives and energy experts have had a relatively muted response believing the move may lower prices and encourage demand. However, they also speculate the impact will be limited to the significant shortfall of supply caused by Russian oil bans that came in response to the war in Ukraine.
Learn more: The New York Times > Biden will tap oil reserve, hoping to push gasoline prices down
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.