Focus at Four: President of TXOGA on Biden Administration backing off oil stockpile
BRYAN, Texas (KBTX) – The Biden administration is backing off on refilling America’s emergency oil stockpile.
The Energy Department says the administration will no longer buy up to 3,000,000 barrels of crude for a reserve site in Louisiana.
The department says the shift comes amid rising prices at the gas pump. According to AAA, the national average has climbed by 20 cents over the past month.
Prices have climbed over fears the war in the Middle East could escalate and disrupt oil supplies.
Todd Staples, President of Texas Oil and Gas Association, joined First News at Four on Friday.
Staples explained that the stockpile is to avoid disruption to the supply chain.
“They [the government] created four sites along the Texas Gulf Coast. There’s a capacity of a little over 700 million barrels when full, and it’s tied into the infrastructure both on the water and what feeds our refining capacity where our gasoline is supplied,” he said.
Staples also said that conflict often has a negative impact on oil prices, because of the uncertainty it gives consumers and businesses.
“Normally we would see even bigger swings than we’re seeing today. When we were observing all of these things globally because oil is traded on a global basis and the price is influenced from that,” he said.
Staples went on to mention that in his opinion, oil and natural gas are still the future for American energy.
“Policy can promote prosperity, or it can hinder it. And we need to be very aggressive in recognizing that oil and natural gas is produced cleaner and better and stronger than ever before. It will be a part of our energy future as we grow and as we develop new energy solutions, oil and gas will continue to be the bedrock of our energy supplies,” he said.
To watch the full interview, click the player above.
