The Biden administration announced on Tuesday that it will release 1 million barrels of gasoline from the Northeast Gasoline Supply Reserve in an effort to lower prices at the pump for the summer. Energy Secretary Jennifer Granholm stated that the gas will be strategically released between Memorial Day and July 4 to ensure sufficient supply flows to the Northeast. This move effectively closes the reserve, which was originally established in response to Hurricane Sandy in 2012. GasBuddy analyst Patrick De Haan commented that while the timing of the decision may raise suspicions, the sale and effective closure of the reserve will eliminate the need for refueling each spring.
The Energy Information Administration reported that the U.S. currently has a supply of 227.8 million barrels of gasoline, surpassing the 218.3 million-barrel mark from a year ago. Former President Donald Trump criticized the move, accusing President Biden of using the reserves to lower prices before the election, even though gas prices remain above $3.60 per gallon – significantly below their peak in June 2022. Trump also claimed that gas prices are now higher than they have been in a long time, attributing this to Biden’s alleged inability to properly drill for oil. However, he did not provide specific examples of Biden’s drilling policy, focusing instead on renewable energy and electric vehicles.
While President Biden has worked to protect millions of acres from drilling and mining, including in Alaska and Montana, he has faced criticism for his approval of the ConocoPhillips drilling project in Alaska. This project, estimated to generate up to 600 million barrels of oil over the next 30 years, drew backlash from Democratic lawmakers and environmental advocates. The Sierra Club’s director Ben Jealous warned that approving the project would make it nearly impossible to achieve the administration’s climate goals for public lands. Despite this tension between fossil fuel production and renewable energy goals, the Biden administration has taken steps to balance both interests.
Gas prices have seen a slight decrease this week, providing some relief for motorists ahead of the Memorial Day weekend. AAA predicts that 38.4 million Americans will hit the road for the holiday, up from 36.9 million last year. National gas prices are expected to remain in the mid-$3 range during the weekend, although drivers on the West Coast may face higher prices ranging from $4 to $6 per gallon. California currently has the highest average gas price at $5.19 per gallon. As drivers prepare for holiday travel, the impact of the release of gas from the Northeast Gasoline Supply Reserve will be closely monitored to gauge its effect on prices at the pump.
