Biden orders huge oil release, prods drillers to step up output

President Joe Biden said his plan to release a million barrels of oil a day from U.S. reserves for six months would lay a foundation for the country to achieve independence from foreign energy suppliers.

Biden blamed a spike in gasoline prices this year on Russian President Vladimir Putin and Russia’s invasion of Ukraine, calling it “Putin’s price hike.” But he also criticized U.S. oil companies that have been reluctant to increase production, and called for Congress to charge fees to firms that have unused drilling leases on federal lands.

“Companies have an obligation that goes beyond just the shareholders — to their customers, their communities and their country,” Biden said Thursday following a White House announcement of the largest-ever drawdown from the Strategic Petroleum Reserve. “No American company should take advantage of a pandemic or

Vladimir Putin to enrich themselves at the expense of American families.”

Biden touted a separate administration plan to provide more than $3 billion to states to help homeowners weatherize their homes. He will also invoke Cold War powers to encourage domestic production of critical minerals for batteries for electric vehicles and other uses. Battery materials will join the list of items covered by the 1950 Defense Production Act.

“It’s time to deliver true long-term energy independence to America once and for all,” Biden said. “It’s not a time for politics.”

He said that he expects U.S. allies will agree to release 30 million to 50 million more barrels of oil from their own reserves.

As much 180 million barrels may be released from the stockpile over the next several months, an amount the White House and oil market analysts called unprecedented. The move underscores Biden administration concern about rising gasoline prices and supply shortages following Russia’s invasion of Ukraine.