The Biden administration is reportedly considering tapping the Strategic Petroleum Reserve to counter rising gas prices this summer. Such a move would set a bad precedent. The SPR exists for reasons of national security, not political convenience.
Vikas Dwivedi, a global oil and gas strategist, told Bloomberg that the White House might turn to the SPR to offset an expected spike in gasoline prices during the summer. “There are not many tools available” to stave off price increases, Dwivedi said. The analyst noted that turning to the country’s emergency reserves “is one of the most effective” ways to limit the pain that consumers might feel at the pump.
It is normal for gas prices to increase during the summer, a peak driving season. But it isn’t normal to turn to the SPR to keep prices down in an election season. In November 2021, the Biden administration turned to the SPR to offset rising gas prices ahead of the holiday season, a move that House Republicans condemned.
The SPR was established in 1975 when President Gerald Ford signed the Energy Policy and Conservation Act into law. At the time, the United States was facing mounting energy crises. The SPR was created to reduce the impact of disruptions in supplies of petroleum products and to carry out national obligations under the international energy program. As the Department of Energy notes, the SPR’s sheer size — with an authorized storage capacity of 714 million barrels — makes it a “significant deterrent to oil import cutoffs and a key tool in foreign policy.”
The latter phrase is key. The SPR exists for crises. It does not exist to stave off electoral defeat.
Indeed, unnecessarily relying on the SPR for domestic political concerns is dangerous. As its name implies, the federally owned oil stocks are “reserves” — and they should be treated as such, used only when necessary.
Should China invade Taiwan, the world economy would be thrown into a tailspin. The resulting supply chain disruptions would make what happened after COVID-19 look like a walk in the park. Energy prices would skyrocket. We don’t know when China will launch its planned invasion. But we do know that Xi Jinping, the head of the Chinese Communist Party, has called for the People’s Liberation Army to be able to do so by 2030. It is entirely possible that an invasion might occur before then. The SPR will be critical to America should China attack. The U.S. must harness its resources.
Nor is China the only factor that should make Washington more cautious in employing the SPR.
The Middle East is in turmoil, with Iranian proxies — even Iran itself — launching attacks at Israel. For more than six months, the region has been engulfed in war. And it seems unlikely to end anytime soon. Iran is also actively seeking nuclear weapons. It is unlikely that Israel will let them cross the threshold and let the world’s leading state sponsor of terrorism become a nuclear power. More war, including potentially bigger wars, seem likely in a part of the world that is key to America’s energy supply.
CLICK HERE TO READ MORE FROM RESTORING AMERICA
Russia, another major energy producer, has continued its war on Ukraine, keeping alive the possibility of further disruptions to the market.
In short, America must learn to husband its resources. Washington must have a serious energy policy, not one that relies on a “green revolution” that largely benefits China. And it must not create the precedent of turning to the SPR for selfish political benefit. The risks are too great.
The writer is a Washington, D.C.-based foreign affairs analyst. His views are his own.
