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THE 2022 OIL CRISIS:
On the most basic level, the United States uses almost 20 million barrels of oil, every single day…which, makes us the number-one consumer of oil in the world…but, there’s catch: since we only PRODUCE 18.6 MILLION barrels of oil per day…we’ve become reliant on OTHER COUNTRIES to fill that deficit.
Now, this isn’t inherently a bad thing, because financial speaking, foreign oil is WAY CHEAPER than we pay to manufacture locally here in the United States – but, that means we’re subject to price volatility should there be any disruptions.
In terms of how they intend to bring prices down:
1. NOPEC
This bill – if signed into law – would allow the United States the option to sue Opec – and its members – for fixing and manipulating the price of oil, similar to how they work to dissemble monopolies who gain too much control within a specific sector.
However, the downside is that – it might be near impossible to enforce any decisions against a foreign nation, it’s heavily opposed by the US-Based Oil Companies – and, if they actually pursue this further – there could be serious consequences from other nations who could make the situation worse.
2. OIL RESERVES
15 million barrels are currently scheduled to be released in December. As they say: “The upcoming oil reserve release is aimed at ensuring there’s enough oil on the market to ensure gasoline prices don’t spike up.
3. MORE PRODUCTION
According to the US Energy Secretary, “the U.S. was working to identify at least 3 million barrels per day of new global oil supply, with assurances from several high-level oil and gas executives that their companies were set to dramatically increase investments and bring online new rigs.”
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