Biden announced the discovery of strategic oil reserves/Getty Images

Against the backdrop of Russia's war against Ukraine, a serious problem arose with oil supply in the world. In order to avoid a crisis, US President Joe Biden decided to open strategic oil reserves.

Due to instability in the oil market, the cost of raw materials has increased significantly, including for the Americans. Therefore, Joe Biden proposes a series of measures to achieve complete energy independence of the United States.

Stimulating the domestic market

President Biden's plan provides for stimulating domestic oil production and gas. The White House expects that by the end of this year it will be possible to increase its oil production by 1 million barrels per day, and by the end of 2023 by another 700 thousand.

The main problem now is that not all companies in the US are ready to invest in their production. For example, according to the White House, there are now about 9,000 unsold permits for oil and gas production. Therefore, Biden proposes to Congress to support the introduction of new taxes for the non-use of federal lands, for which there is an official permit for mining.

Thus, American companies will have a choice – either to extract their own raw materials or pay for unused subsoil.

The US will provide strategic reserves to the oil market

Joe Biden, after consultations with international partners, announced that the US will take a historic step – every day from US strategic reserves to the oil market will supply 1 million barrels of raw materials within six months.

The US Department of Energy uses oil revenues from strategic reserves to replenish stocks of raw materials in subsequent years.

In Bely The house believes that such a move will stimulate domestic production and ensure the readiness of strategic reserves for critical situations.