Biden & Granholm Drain Entire Northeast Gas Reserve in Bid to Lower Prices Over 4th of July Holiday

Back in March when the mammoth 150-page bill meant to avert government shutdown was passed, which in actuality was yet another pork filled free-for-all bonanza authorizing $1.7 trillion in in discretionary spending, a truly shocking item was included: after Biden singlehandedly drained half of the US strategic petroleum reserve to avoid obliteration for Democrats in the 2022 midterm elections, Congress snuck in a provision that would sell off and shutter the Northeast Gasoline Supply Reserve - a move that while perhaps keeping gas prices lower for a day or two, would also leave the entire continental northeast defenseless to any true environmental catastrophe or shock. 

Despite the fact this is an election year and polls show Biden trailing behind Trump by double digits in several swing states, why would anybody in their right mind pursue such short-term gains at the expense of potentially disastrous long-term consequences to the entire nation?

Amazingly, on May 22^nd, just two months after the bill was signed by Biden into law, the panicking administration announced that it would sell the nearly 1 million barrels of gasoline in the US managed stockpile in northeastern states, the Department of Energy said, effectively closing the reserve.

The department created the Northeast Gasoline Supply Reserve (NGSR) in 2014 after Superstorm Sandy left motorists scrambling for fuel. But, according to the so-called mega-brains in the Department of Energy, storing refined fuel is costlier than storing crude oil, so closing the reserve was included in U.S funding legislation signed by President Joe Biden in March.

Bids to buy the gasoline located at the two NGSR storage sites in Port Reading, NJ (900,000 bbl) and South Portland, ME (98,824 bbl), are due on May 28 and the Treasury Department's general funds gets proceeds from the sale.

Incidentally, the proceeds from the reserve liquidation - which will amount to only roughly $125 million gross (and far less net) - is roughly how much the government spends every 15 minutes!

So is it better to have a gasoline reserve for unexpected events, or to fund a quarter hour of US government's spending? Don't answer that. Of course, the answer is neither - the whole point of selling the gasoline is to depress prices at the pump if only for a few days to help Americans forget about the great inflationary nightmare they have been in for the past 3 years.

The volumes will be allocated in quantities of 100,000 barrels with each barrel containing 42 gallons, the department said, adding it would require that fuel is transferred or delivered no later than June 30. That will ensure the gasoline can flow into local retailers ahead of the Fourth of July holiday and that it will be sold at competitive prices. Translation: Biden just drained the Northeast strategic gasoline reserve to push gas lower by a few cents on July 4.

For context, gas prices at the pump this Memorial Day will be the second most expensive in a decade - dramatically above the ten-year average of $2.91.  “By strategically releasing this reserve in between Memorial Day and July 4th, we are ensuring sufficient supply flows to the ... northeast at a time hardworking Americans need it the most,” Energy Secretary Jennifer Granholm said in a press release.

“The Biden-Harris administration is laser-focused on lowering prices at the pump for American families, especially as drivers hit the road for summer driving season,″ Granholm continues in the statement.

“By strategically releasing this reserve in between Memorial Day and July 4th, we are ensuring sufficient supply flows to the tri-state (area) and Northeast at a time hardworking Americans need it the most.”

White House Press Secretary Karine Jean-Pierre said release of gas from the Northeast reserve builds on actions by President Joe Biden, a Democrat, “to lower gas and energy costs — including historic releases from the Strategic Petroleum Reserve and the largest-ever investment in clean energy.″

Back in 2022 Biden significantly drained the Strategic Petroleum Reserve following Russia’s invasion of Ukraine, dropping the stockpile to its lowest level since the 1980s after selling about 280 million barrels to China (of all places) in order to keep prices low.   

The election year move helped stabilize gasoline prices that had been rising in the wake of the war in Europe but drew complaints from Republicans, and frankly anyone with half a brain, that the Democratic president was playing politics with a reserve meant for national emergencies.

The Biden administration has since very theatrically begun refilling the oil reserve, which had more than 364 million barrels of crude oil as of last month, by purchasing a couple million barrels every other month or so, setting it on pace for refilling some time in the 2100s.

“While congressional Republicans fight to preserve tax breaks for Big Oil at the expense of hardworking families, President Biden is advancing a more secure, affordable, and clean energy future to lower utility bills while record American energy production helps meet our immediate needs,” Jean-Pierre said.

According to a poll last week by Real Clear Politics, Trump is also leading in the latest polls of all swing states.  Trump is leading by 2% in the latest polls in Pennsylvania. If Biden loses Pennsylvania but wins Wisconsin and Michigan, he then at least needs to win one state from Georgia and North Carolina in addition to one state from Arizona and Nevada to secure a second term.