America forced to extract oil from SPR
America's pressure on oil-producing countries to increase production has been almost useless
Oil prices have troubled the US President. If OPEC countries do not listen to them, then they have urged India, China, Japan, and South Korea to come together. America's pressure on oil-producing countries to increase production has been almost useless. Now he is asking countries like India and Japan to extract oil from his savings. But a lesson has also been learned from this whole incident that even if oil-producing countries want, they cannot produce much oil. The Organization of Petroleum Exporting Countries (OPEC) and its allies have started removing the restrictions on supply in 2020, but their pace is not as fast as the US wants. So the prices have reached a three-year high. The OPEC Plus countries, including Russia, have refused to bow to US pressure to increase production. He sticks to his plan to increase production by four lakh barrels a day.
He says that if production is increased faster than this, then in 2022 the prices can be greatly affected. America will put a hand in the reserve There is a possibility that to reduce energy prices, America has planned to give oil on loan from its emergency stock with Asian countries, which can be announced on Tuesday. President Joe Biden's popularity has been hit hard by rising prices of gasoline and other consumer goods in America. This could have an impact on the performance of his Democratic Party in next year's Congressional elections. Therefore, at present, they have no way but to extract oil from the emergency stock. For this emergency stock (Strategic Petroleum Reserve, SPR) swap plans have been made with India, China, South Korea, and Japan. How the swap is done Joe Biden has also urged Asian countries to extract oil from their own SPR. India and Japan are looking for ways to do this. Apart from raising oil prices, America's effort together with Asian countries is also a kind of warning to oil-producing countries that they should produce extra to prevent prices from rising in large economies.
OPEC countries and Russia are due to meet on December 2 to discuss production policy. In pictures: The dark truth of fossil fuels Until now, the US has been working with the Paris-based International Energy Agency (IEA) to stabilize oil production and prices. Japan and South Korea are both parts of the 30-member IEA while China and India are allies. Under the swap of SPR, oil companies can take oil from the reserves, but they have to return that oil interest. The US has so far given permission to extract oil from the SPR only three times. This was done during the war in Libya in 2011, during Hurricane Katrina in 2005, and during the 1991 Gulf War. What is SPR? Strategic Petroleum Reserves (SPRs) are oil reserves that different countries keep for use in emergencies. The US has the largest SPRs in the world, with 71 in Louisiana and Texas.