The president is frustrated by OPEC+’s short-sighted decision to cut production quotas as the global economy grapples with the continuing negative impact of Putin’s invasion of Ukraine. At a time when maintaining global energy supplies is critical, the decision will have the most negative impact on low- and middle-income countries that are already suffering from rising energy prices.
The president’s work at home and by allies around the world has helped drive down US gas prices: Since the beginning of the summer, gas prices have been below $1.20 — and the most common price at gas stations today is $3.29/gallon. As directed by the President, the Department of Energy will release another 10 million barrels from the Strategic Petroleum Reserve to the market next month, continuing the historic release the President ordered in March. The President will continue to direct SPR releases as appropriate to protect American consumers and promote energy security, and he is directing the Secretary of Energy to immediately explore any additional responsible actions to continue increasing domestic production.
The president is also calling on U.S. energy companies to continue lowering pump prices, narrowing the historically wide gap between wholesale and retail gas prices — so American consumers are paying less at the pump.
In light of today’s action, the Biden administration will consult with Congress on additional tools and authorities to loosen OPEC’s control over energy prices.
Finally, today’s announcement is a reminder of why the United States’ reliance on foreign sources of fossil fuels is so critical. With the passage of the Deflation Act, the US is now poised to make the most significant investment ever to accelerate the clean energy transition, increasing its reliance on American-made and American-produced clean energy and energy technologies, while increasing energy security.