Connect with us

Hi, what are you looking for?

Oracle of  Omaha Says – Investing and Stock NewsOracle of  Omaha Says – Investing and Stock News

Latest News

Republicans urge investigation into Biden’s ‘mismanagement’ of emergency oil stocks

Republican leaders on Senate and House committees with oversight of federal energy policies are requesting a watchdog investigation into the Biden administration’s depletion of the Strategic Petroleum Reserve (SPR).

The lawmakers – House Energy and Commerce Committee Chair Cathy McMorris Rodgers, R-Wash., and Senate Energy and Natural Resources Committee ranking member John Barrasso, R-Wyo. – requested in a letter Monday that the Government Accountability Office probe the Department of Energy (DOE). They argue that the agency’s heavy reliance on the SPR has undermined U.S. energy security.

‘DOE’s mismanagement of the SPR has undermined America’s energy security, leaving the nation more vulnerable to energy supply disruptions, and increasing the ability for OPEC and Russia to use energy as a geopolitical weapon,’ McMorris Rodgers and Barrasso wrote in the letter to Gene Dodaro, the GAO’s comptroller.

‘DOE has failed to establish long-term plans for the optimal size, configuration, maintenance, and operational capabilities of the reserve,’ they added. ‘We are concerned that the rapid depletion of the SPR may have caused structural damage to the SPR’s pipelines and caverns, compromising its ability to meet its energy security mission in the event of a true energy supply disruption.’

They noted that the SPR, which consists of four storage facilities in Texas and Louisiana, is made up of a system of wells, pipelines and pumps that use water and brine to control oil flows. The lawmakers expressed concern that the repeated drawdown of oil stocks from the system could ultimately erode the SPR’s physical integrity.

Overall, in three separate releases, President Joe Biden has ordered the DOE to release a total of about 260 million barrels of oil stored in the SPR since taking office to combat record fuel prices hitting American consumers.

The SPR, which has a capacity of about 714 million barrels, has fallen from about 638 million barrels to 362 million barrels, its lowest level since October 1983, since Biden took office.

‘DOE also recently created new rules, without Congressional authorization, for ‘fixed-price’ purchases of crude oil, rather than conventional purchase contracts,’ McMorris Rodgers and Barrasso continued in the letter Monday.

‘The failure of DOE to secure contracts to purchase oil under the new ‘fixed-price’ bidding scheme raises serious questions about DOE’s replenishment strategy and the ability of the SPR to protect the American consumers and the economy in times of emergency,’ the letter stated.

The White House unveiled a plan last year to refill SPR stocks by buying back oil at between $67 to $72 per barrel, a plan it said would amount to purchasing oil at a discount. However, DOE Secretary Jennifer Granholm suggested in March that it could take years to refill the emergency reserve to its previous level.

The Government Accountability Office didn’t immediately respond to a request for comment.

This post appeared first on FOX NEWS

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Everynet, one of the world’s largest network operators for national LoRaWAN® networks, announces it is working with Amazon Web Services (AWS) to offer long-range...


    As more candidates throw their hats into the 2024 Presidential ring, I’d like to offer a proposal that should have immediate bipartisan support: stop...

    Editor's Pick

    The Internet of Things (IoT) is changing the way we interact with technology, and it has the potential to revolutionize the way we manage...

    Editor's Pick

    Semtech Corporation and esteemed engineering design services firm, Connected Development, today announced the launch of the new XCVR Development Board and Reference Design integrating...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023