North Dakota is not impressed by the Biden Administration’s recent announcement it will release 50 million barrels of crude oil from the Strategic Petroleum Reserves alongside China, India, Japan, South Korea and the United Kingdom.
The nation’s petroleum reserve is intended for emergencies. Most analysts have said a unilateral release from reserves is not likely to offer more than short-lived, modest relief. Coordinating with other countries could help extend the immediate impact, but the effect on prices was clearly mixed Tuesday.
WTI dropped just 14 cents to close at $78.36 on Tuesday, Nov. 23, but Brent was up $2.61 to close at $82.31.
To North Dakota, which is the nation’s third largest energy producing state, the release from strategic reserves looks like just the latest in a string of baffling, tone-deaf moves that do nothing to solve any of the true causes of higher domestic energy costs.
“The only national emergency is President Biden’s awful energy policy in which he has purposefully curtailed American production and then embarrassingly pleaded with OPEC to make up the difference,” Sen. Kevin Cramer said. “It’s clear to me the Biden Administration doesn’t know why they need to provide regulatory certainty and embrace domestic energy production if we want to see lower prices at the gas pump and then everything else in the value chain.”
Sen. John Hoeven, meanwhile, believes Biden could solve many of the current issues by simply easing the burdens on American producers, so they can produce the energy their nation needs.
“Instead of saddling our energy producers with increasing regulations and discouraging new production, the administration should be empowering the people who produce energy in this country,” he said. “They do it better than anyone in the world, and they do it with the best environmental stewardship.”
Rep. Kelly Armstrong, meanwhile, called it a band-aid for a self-inflicted wound.
“The administration’s energy policies are expensive for consumers, hostile to domestic energy producers, and terrible for American workers,” he said. “It is clear they would rather double down on their failed policies instead of focus on long-term solutions to our energy crisis. We need to empower energy producing states like North Dakota to provide reliable and needed energy, not attack them and destroy millions of Americans’ livelihoods.”
To Gov. Doug Burgum it was just the latest in a series of “baffling” moves by the administration.
“Executive actions taken by this administration have done nothing but erect roadblocks for our domestic oil industry to recover to pre-pandemic levels, and Americans are feeling the pain in their wallets,” he said. “No one produces energy more cleanly and efficiently than we do. But instead of encouraging U.S. operators to produce more oil, this administration has repeatedly urged OPEC to boost oil output and is now tapping into reserves intended to be used for national emergencies.”
Burgum urged the Biden administration to work with North Dakota and other oil-producing states to grow domestic oil supply.