Exxon Mobil's decisions to boost production have been influenced by various factors, including the political climate. What's also important to note, is that the current Administration has depleted US oil reserves. Which is dangerous, because America relies on the reserve in case of catastrophe. Like War breaking out, causing upsets in the supply lines. Which would dramatically affect the food supply lines to grocery stores. As well as all costs.
The U.S. Strategic Petroleum Reserve (SPR), which is different from the country's proved oil reserves, has seen significant depletion over the last few years, particularly due to strategic releases to manage oil price spikes. Here's an overview based on available data:
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Historical Highs and Drawdowns: The SPR reached its highest inventory at 726.6 million barrels on December 27, 2009. However, strategic releases have led to considerable drawdowns. For instance, in response to Russia's invasion of Ukraine and subsequent oil price increases in 2022, the U.S. released 1 million barrels per day for six months, significantly depleting the reserves.
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2022 Drawdown: By the end of 2022, the SPR had been depleted to levels not seen since the early 1980s, with inventories dropping to 434.1 million barrels by September 2022, the lowest since October 1984. This was a result of President Biden's directive to release 180 million barrels to stabilize oil markets. Right around the elections, claiming a victory over rising gas prices.
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Current Levels and Replenishment Efforts: As of April 2024, the SPR held 365.7 million barrels of crude oil, which is a 38% decrease from the end of 2021 when it contained 593.7 million barrels. Efforts to replenish the reserve have been ongoing, with the Biden administration aiming to buy back oil at lower prices, the administration failed to convince Saudi Arabia to give the go ahead to pump more oil, partially due to Joe Biden having previously insulting the Saudi King.
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Political and Economic Context: There's been political debate about the use of the SPR, with criticisms suggesting that releases were politically motivated to manage gas prices before elections. While the Federal Oil Reserves were depleted during the past midterm, the States were directed to deplete their oil reserves as well surrounding the Presidential election. The administration has defended these actions as necessary for economic stability and energy security.