MSU professor doesn’t expect gas prices to drop anytime soon
LANSING, Mich. (WILX) - President Joe Biden dipped into the nation’s petroleum stockpile in an effort to decrease gas prices Thursday.
“I’m authorized in the release of one million barrels per day for the next six months, over 180 million barrels from the Strategic Petroleum Reserve,” Biden said.
EXPLAINER: What is the Strategic Petroleum Reserve?
According to Dr. Ayalla Ruvio, a professor at Michigan State University, even with the large amount of oil being released, it would only account for 5% of the United States’ daily use.
Lacy Ellison said she’s skeptical at the attempt to lower gas prices and she’s barely making ends meet filling up her gas tank.
“I’m going to believe it when I see it, you know?” Ellison said. “I’m halfway broke. Bills then gas -- I might have to start panhandling!”
Ruvio said Biden’s plan isn’t a quick fix and Americans should still expect high gas prices.
“What he’s trying to create by doing it is not instantly to relieve the pressure,” Ruvio said.
The releasing of the oil reserve -- on top of the “use it or lose it” scenario is more of a long-term relief, essentially taxing companies who aren’t using approved drilling on federally owned land.
“What president Biden basically said is if you’re not using it -- we’re taking it,” Ruvio said. “Hopefully that will encourage companies to pump more oil and release more to the market. It’s basically a supply issue -- once you have enough supply prices will go down.”
Ruvio said it’s a historical moment which could be seen as a great idea, or a terrible idea. Only time will tell.
“It really is an unprecedented decision. This amount of oil to be released in this short of a time hasn’t been done since the early 70s, I believe,” Ruvio said. “Some criticize president Biden for doing so and exposing the U.S. to being under the threat of there not being enough oil when needed.”
POLL: Will the release of one million barrels of oil per day help gas prices?
Ellison said now is the time people need to look out for one another.
“If you got a friend out there that don’t got a car -- give them a ride,” Ellison said. “This is the time we need to come together. So be a good neighbor like State Farm.”
More: Current gas prices
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