President Biden’s administration has made a controversial decision to sell off and effectively close the Northeast Gasoline Supply Reserve (NGSR), a strategic stockpile of nearly 1 million barrels of gasoline intended to safeguard the northeastern states against supply disruptions or environmental catastrophes.
This move, authorized by Congress in March’s $1.7 trillion spending bill, has raised eyebrows and concerns over potential long-term consequences.
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- Biden administration is selling off the entire Northeast Gasoline Supply Reserve.
- Strategic reserves meant for emergencies are temporarily drained to lower gas prices before elections.
- Critics accuse Biden of sacrificing long-term energy security for short-term political gain.
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Biden Drains Northeast Gas Reserve Ahead of Elections – A Desperate Move?
The NGSR, established in 2014 after Superstorm Sandy left motorists scrambling for fuel, was designed to provide a crucial buffer against supply shocks.
However, the Biden administration has justified its closure by arguing that storing refined gasoline is costlier than crude oil, and the proceeds from the sale (estimated at $125 million gross) will fund government expenditures.
Critics have accused the administration of sacrificing long-term energy security for short-term political gain, as the sale is timed to release gasoline into the market ahead of the Fourth of July holiday, potentially lowering pump prices for a brief period.
This move comes after Biden’s substantial drawdown of the Strategic Petroleum Reserve in 2022, a move aimed at stabilizing gasoline prices during the midterm elections but criticized as playing politics with a reserve meant for emergencies.
The Department of Energy has announced that bids for the NGSR gasoline stored in Port Reading, NJ (900,000 barrels) and South Portland, ME (98,824 barrels), are due on May 28.
The fuel must be transferred or delivered by June 30.
Energy Secretary Jennifer Granholm stated that the release aims to ensure “sufficient supply flows to the tri-state (area) and Northeast at a time hardworking Americans need it the most.”
However, the decision has faced backlash from Republicans and critics who argue that the administration prioritises short-term political gains over long-term energy security and disaster preparedness.
As gas prices remain elevated, with this Memorial Day weekend being the second most expensive in a decade, some see the administration’s actions as a desperate attempt to appease voters ahead of potential re-election challenges.
With Trump’s lead over Biden widening in betting markets and polls and the possibility of legal consequences from the “hush money” case, the administration’s move to drain the Northeast gas reserve has raised questions about the true motivations behind this controversial decision.
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