(Tea Party PAC) – On Friday, President Donald Trump announced during a press conference on the coronavirus that the United States would be replenishing its Strategic Petroleum Reserve (SPR) to secure our nation’s energy reserves.
This is an incredibly important move. If the coronavirus has taught us anything, it’s that Trump’s America First agenda was the right approach all along.
“Based on the price of oil, I’ve also instructed the Secretary of Energy to purchase at a very good price large quantities of crude oil for storage in the U.S. strategic reserve,” Trump said during the White House Rose Garden presser.
“We’re going to fill it right up to the top, saving the American taxpayer billions and billions of dollars, helping our oil industry [and furthering] that wonderful goal — which we’ve achieved, which nobody thought was possible — of energy independence,” Trump said.
This announcement comes after serious turmoil in the international market following broken negotiations between Saudi Arabia and Russia when the Saudis announced they’d be increasing production.
According to CNBC, the industry reacted positively to the president’s announcement.
“It is a fantastic idea,” said John Kilduff, the founding partner of Again Capital, in CNBC’s report. “The SPR is one of the few levers that the U.S. can pull in times of oil market tumult.”
“It has served the country well when supplies get tight or otherwise become unavailable during times of natural disasters or geopolitical turmoil,” Kilduff said. “Releases of supplies have served to short-circuit price rallies in the past, and this filling may well serve to ebb the current sell-off.”
“Russia, the world’s second-largest producer, does not appear willing to return to its agreement with the Organization of the Petroleum Exporting Countries (OPEC), which has kept oil in a range around $30 a barrel for much of the last week,” CNBC reported.
Saudi Arabia is essentially the de facto leader of OPEC.
The move to purchase more oil for the U.S. reserve also came as part of the administration’s response of supporting the American economy that’s trying to determine to what extend the novel coronavirus will impact growth. Trump declared a national state of emergency in his Friday speech from the Rose Garden.
The Department of Energy described the importance of the SPR:
Established in the aftermath of the 1973-74 oil embargo, the SPR was established to counter a disruption in commercial oil supplies which could threaten the U.S. economy. It is also the critical component for the United States to meet its International Energy Agency obligation to maintain emergency oil stocks.
Trump’s presser most importantly included a national state of emergency to designate money to help states cope with the fallout of the coronavirus outbreak.