DAVE & DUJANOVIC

Will Biden’s plan to tap national reserve lower gas prices?

Apr 7, 2022, 9:49 AM
Lack of Russian oil supply greatly effects Utah along with rest of Country...
FILE - A pumping unit sucks oil from the ground near Greensburg, Kan. on March 6, 2012. AP Photo/Charlie Riedel.

SALT LAKE CITY — In an attempt to lower gas prices, President Joe Biden announced plans to withdraw 1 million barrels of oil per day for the next six months from the U.S. Strategic Petroleum Reserve. But will that ease pain at the pump?

Gas prices now and last year

The average price of regular gas Wednesday in Utah is $4.42 a gallon, according to AAA.

Kathleen Sgamma

Kathleen Sgamma of Western Energy Alliance joins KSL NewsRadio’s Dave & Dujanovic to explain what difference — if any — the withdrawal would make to drivers/consumers.

In 2021, U.S. motorists burned about 369 million gallons of gas per day or about 8.80 million barrels per day, according to the US Energy Information Administration. So Mr. Biden’s plan would supply the country with over 20 days’ worth of gasoline from the reserve.

“This is a wartime bridge to increase oil supply until production ramps up later this year. And it is by far the largest release of our national reserve in our history,” the president said.

Will gas prices drop under Biden’s plan?

“The president predicted that gas prices would drop as much as 35 cents a gallon,” Debbie Dujanovic said. “So will this million barrels a day of release, will that make a difference in gas prices?”

“Well, hard to say,” Sgamma said. “Last time there was a release that President Biden did, released from the Strategic Petroleum Reserve, the price actually increased. So it’s a temporary stopgap measure.”

She added that the producers of oil say the better option is to develop the untapped reserve in the ground in the United States.

“Why don’t we just have private investors invest in oil and gas production and we the producers produce it?” she said, adding replacing the oil withdrawn from the national reserve will be at the expense of taxpayers.

Federal roadblocks to drilling for oil and gas

“Why can’t you guys just produce more oil?” Dave Noriega asked.

“We are indeed working to produce more oil,” Sgamma said. “There are more rigs running in the United States now than there were a few months ago.”

She added the Interior Department has slowed permitting and stopped leasing on federal lands.

Noriega pointed out that there are nearly 9,000 permits that are not being used.

Sgamma said 8,800 outstanding permits are not being drilled now and await other permits, such as pipeline permits and gas-gathering line permits.

“We are experiencing a situation where the [Biden] administration has discouraged investment in the oil and natural gas industry. And that means that we can’t get capital to drill some of those wells,” she said.

Drill or pay a fee

Debbie asked Sgamma for her response to Mr. Biden’s use it or lose it policy. 

“Congress should make companies pay fees on wells on federal leases they haven’t used in years and acres of public land they’re hoarding without production. Companies that are already producing from these wells won’t be affected,” the president said.

“I think it’s a positive thing that the president suddenly wants us to develop on federal lands,” Sgamma said, “. . . But his own Interior Department is stopping us from developing on many of them.”

She closed by saying most of the drilling for oil and gas happens on private lands.

“About a quarter of our supply comes from federal lands and waters, but the vast majority is on private and state lands,” she said.

Dave & Dujanovic can be heard on weekdays from 9 a.m. to noon. on KSL NewsRadio. 

Related reading:

 

 

Today’s Top Stories

Dave & Dujanovic

Rioters at the US Capitol...
Curt Gresseth

Utah bill would limit police access to your cellphone data

A spokesman for a a libertarian think tank in Utah discusses why he supports a bill at the Legislature limiting law enforcement access to the cellphone of a person near a crime scene.
9 days ago
rollercoaster lagoon...
Curt Gresseth

Lagoon spokesman explains big price hike for day pass

Lagoon announces Primordial, a new one-of-a-kind interactive rollercoaster, coming in 2023, but with the new ride comes higher season passes.
12 days ago
Police provided an update but added little new information about four University of Idaho students ...
Curt Gresseth

Police stay quiet after quadruple homicide in Idaho

A killer is on the loose, police in Moscow, Idaho, are tight-lipped and a community is on edge after four university students were found slain Saturday.
13 days ago
A Utah psychiatry expert joined KSL NewsRadio's Dave and Dujanovic to discuss how friends and famil...
Curt Gresseth

Setting boundaries on a friend or family member’s addiction

Instead of boundaries that look like giving in or cutting off the person with an addiction, one Utah expert suggests seeking middle ground.
13 days ago
Being involved with a bad financial advisor is no good for investors. A KSL investigative reporter ...
Curt Gresseth

Do you know how to spot a bad financial advisor?

Spotting a bad financial advisor is easier if you know which red flags to look for.
14 days ago
A member of the Utah Taxpayers Association weighs in on how Salt Lake County will spend an 85 milli...
Curt Gresseth

SLC voters OK $85 million parks and trails bond. Is it worth higher taxes?

The Utah Tax Payers Association offers insight into the parks and trails bond and breaks down what the money will fund.
15 days ago

Sponsored Articles

Happy joyful smiling casual satisfied woman learning and communicates in sign language online using...
Sorenson

The best tools for Deaf and hard-of-hearing workplace success

Here are some of the best resources to make your workplace work better for Deaf and hard-of-hearing employees.
Team supporters celebrating at a tailgate party...
Macey's

8 Delicious Tailgate Foods That Require Zero Prep Work

In a hurry? These 8 tailgate foods take zero prep work, so you can fuel up and get back to what matters most: getting hyped for your favorite
christmas decorations candles in glass jars with fir on a old wooden table...
Western Nut Company

12 Mason Jar Gift Ideas for the 12 Days of Christmas [with recipes!]

There are so many clever mason jar gift ideas to give something thoughtful to your neighbors or friends. Read our 12 ideas to make your own!
wide shot of Bear Lake with a person on a stand up paddle board...

Pack your bags! Extended stays at Bear Lake await you

Work from here! Read our tips to prepare for your extended stay, whether at Bear Lake or somewhere else nearby.
young boy with hearing aid...
Sorenson

Accommodations for students who are deaf and hard of hearing

These different types of accommodations for students who are deaf and hard of hearing can help them succeed in school.
Young woman receiving laser treatment...
Form Derm Spa

How facial plastic surgery and skincare are joining forces

Facial plastic surgery is not only about looking good but about feeling good too. The medical team at Form Spa are trained to help you reach your aesthetic outcomes through surgery and through skincare and dermatology, too.
Will Biden’s plan to tap national reserve lower gas prices?