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Tags: oil reserves | biden administration | gas and energy prices

Lauren Fix, The Car Coach: Dumping Oil Reserves Will Not Lower Gas Prices

gas prices
Customer watches the price of gas at a San Francisco staion. (Getty Images)

Lauren Fix By Monday, 04 April 2022 03:55 PM EDT Current | Bio | Archive

President Joe Biden is ordering the release of 1 million barrels of oil per day from the nation’s strategic petroleum reserve (SPR) for six months, or 180 days, in a bid to control energy prices. It is the largest such release from the stockpile in history; however, the stockpile is at its the lowest level since 1984.

The latest amount of U.S. oil release would make 180 million barrels of oil available, or the equivalent to about two days of global demand, and would mark the third time the United States has tapped the SPR in the past six months.

Will this lower your gas prices?

Let’s start with some facts and an overview of strategic oil reserves. The Strategic Petroleum Reserve is an emergency stockpile of petroleum maintained by the United States Department of Energy. It is the largest known emergency supply in the world, and its underground tanks in Louisiana and Texas have capacity for 714 million barrels.

The United States created the Strategic Petroleum Reserve in 1975 after the Arab oil embargo spiked gasoline prices and damaged the U.S. economy. Presidents have tapped the stockpile to calm oil markets during war or when hurricanes hit oil infrastructure along the U.S. Gulf of Mexico. The U.S. also maintains small heating oil and gasoline reserves in the northeast.

As an example, President George W. Bush authorized the release of oil from the SPR due to Hurricane Katrina's effects on oil refineries in the Gulf Coast.

To the burning question, will releasing 1 million barrels a day lower your gas prices?

Analysts have warned a release from the Strategic Petroleum Reserve would only produce a short-term effect, as it would not increase U.S. production capacity. This dumping is about nine days’ worth of demand, but even less because a barrel of crude from the Reserve does not equal a barrel of gasoline. Not all oil can be converted to heptane or diesel.

The U.S. consumes about 20 million barrels of oil per day. The average cost of gasoline declined to $4.23 a gallon Thursday, a roughly 2.1% decrease compared to two weeks ago.

The Bottom Line

The country with the most gas and oil is strategically the strongest in the world because it can outlast their opponents. This is true with many other items, including food.

As an expert on the automotive industry, I do not foresee 1 million barrels of oil a day moving the price of gasoline in the slightest. You may see a few cents drop over a few months, but prices will increase again if more oil and gas is not produced in the U.S. to make up for the shortfall.

Beig energy independent is the best choice.

On top of all of this, the government is planning to add additional 11 new tax hikes on the oil and gas industry, and this will not incentivize the big producers in the industry to increase production.

Additional articles on our website https://www.CarCoachReports.com

"LAUREN FIX'S GUIDE TO LOVING YOUR CAR” Book - https://amzn.to/3ifDi3j

Total Car Score Podcast ► Hosts: Lauren Fix, Karl Brauer and Javier Mota. https://www.revolverpodcasts.com/shows/total-car-score/

_________________
Lauren Fix, The Car Coach®, is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and safety issues for both the auto industry and consumers. Her analysis is honest and straightforward.

Lauren is the National Automotive Correspondent for Newsmax TV, a conservative news net carried in 23 countries and in over 35 million U.S. cable/satellite homes. She is also The Weather Channel and Inside Edition’s auto expert. Lauren Fix serves as a juror for the esteemed North American Car & Truck of the Year Awards (NACTOY).

Lauren is The Car Coach columnist for Parade Magazine and eBay Motors and writes a weekly column. She also appears weekly on USA Radio’s DayBreak USA.
Lauren is the president and founder of Automotive Aspects, Inc., a consulting firm with a wide range of multi-media services, including media consulting, broadcast messaging strategy, public relations and television production.

Lauren is the author of three books: most recently, Lauren Fix’s Guide To Loving Your Car with St. Martins Press, Driving Ambitions: A Complete Guide to Amateur Auto Racing, and The Performance Tire and Wheel Handbook.

Lauren’s broadcast experience includes Oprah, Live! With Regis and Kelly, The View, TODAY, 20/20, The Early Show, CNN, FOX News, FOX Business, MSNBC, HLN, TBS Makeover and a Movie, Inside Edition, ESPN, TBS, Discovery, Speed and NPR, to name a few. Lauren previously hosted four seasons of Talk 2 DIY Automotive on the Do-It-Yourself Network (DIY), was the National Automotive Correspondent for Time Warner Cable and hosted Female Driven on Lifetime TV.

Lauren’s articles and advice have appeared in USA Today, Good Housekeeping, Redbook, eBay, Woman’s World, Esquire, First for Women, InTouch and Self. She has also contributed content to Motor Trend, Truck Trend, Hot Rod, Car Craft and many other automotive publications.

Lauren is a member of the Society of Automotive Engineers (SAE), the Society of Automotive Analysts (SAA) and is an ASE (Automotive Service Excellence) certified technician. She inherited her love of all things automotive from her father, who owned a brake remanufacturing business and worked for many U.S. manufacturers. Lauren has been fixing, restoring and racing cars since the age of ten. She has been advising drivers almost all her life.

In addition to being a leader in positive consumer awareness and the automotive industry, Lauren is often asked to speak to groups around the world about her success in marketing, motivation, entrepreneurship, parenting and other lifestyle topics.

Lauren was named the 2015 WIN Award, 2013 SEMA Business Network “Mentor of The Year”; SEMA Business Network 2012 Woman of the Year; and awarded various Car Care Council “Automotive Communications Awards” in 2012, 2013 and 2014. Past awards include 2008 Automotive Woman Of The Year and 2010 Woman of Distinction – Entrepreneur winner. Lauren Fix was inducted into the National Women and Transportation Hall of Fame in 2009 – a very high honor for a hard working automotive professional.

© 2022 Newsmax Finance. All rights reserved.


LaurenFix
President Joe Biden is ordering the release of 1 million barrels of oil per day from the nation's strategic petroleum reserve (SPR) for six months, or 180 days, in a bid to control energy prices. It is the largest such release from the stockpile in history.
oil reserves, biden administration, gas and energy prices
1022
2022-55-04
Monday, 04 April 2022 03:55 PM
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