Biden Administration Purchases Almost 5 Million Barrels of Oil
The Strategic Petroleum Reserve, used to store the precious resource of crude oil for times of crisis, has been consistently drained during Joe Biden’s term in an attempt to alleviate prices at the pump. This is changing, however, as the Department of Energy is taking advantage of a small dip in oil prices to buy some back.
Details
Crude oil prices have dropped an estimated 10% since April, and to that extent the Department of Energy (DOE) is purchasing barrels to replenish the stock.
“We will keep buying back…going into next year and try to buy back as much as we are capable of buying back.” Deputy Energy Secretary David Turk said in an interview regarding the decision.
Beyond this announcement of a purchase, the DOE announced plans to further purchase an additional 38.6 million barrels purchasing the oil from the likes of Exxon Mobil. The 43.25 million in promised purchases averaged at $77 per barrel, meaning a check was signed off valuing $3.33 billion.
Currently, the Strategic Petroleum Reserve has 375 million barrels of crude oil, or 15.75 billion gallons, enough to fill up the Empire State Building 57 times over. While this number is impressive in a vacuum, it was at 600 million barrels in 2022.
Conclusion
It will be interesting to see where fuel prices go in the coming months and how the federal government uses it to buy and sell crude oil as it pleases. As an entity carrying a large amount of the black gold, as well as having a lot of purchasing power, it has the ability to manipulate the market and earn itself a profit by buying low and selling high. Plus, the federal government does not have to pay taxes as that money would just go back into the pocket of Uncle Sam.
As hard as it may be to believe, the United States produces more oil than Russia and Saudi Arabia, even under the environmentally progressive Biden Administration. It is possible that this production will kick into overdrive with the next Administration, wherein the government can then buy petroleum for cheap.
ABOUT TOPMARK FUNDING
TopMark Funding is a top-rated semi-truck financing and trailer financing company located in Roseville, CA. We specialize in commercial trucking and heavy equipment. Our mission is to become your long-term financial partner by helping you grow your trucking business and fleet.
We’re not here for the short-term, we’re on the long-haul with you!
We have financing options for trailers, semi-trucks, commercial trucks, and small businesses. We have great rates, low down payments, and flexible monthly payments regardless of credit history.
Learn more about Trailer Financing.
Fill out the contact form or give us a call at (866) 627-6644. One of our truck financing specialists will contact you as soon as possible to go over your truck lease needs and learn more about you and your business financing goals.