CNN guest warns that tapping into oil reserves won’t help US gas prices: ‘If we don’t refill, we’re ‘in trouble’

CNN guest and president of Rapidan Energy Bob McNally said on Saturday that President Biden’s final move Taking advantage of the strategic petroleum reserves will not lower gas prices and he warned that the United States could be “in trouble” if we did not replenish the reserves.

Host Erica Hale McNally asked during CNN’s Newsroom if Biden was a newbie announcement That the administration will release 1 million barrels of oil per day over the next six months will have no effect on the gas pump.

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“Unfortunately, maybe not in a good way,” he said.

“oil prices It’s probably going to go higher because while the US is consuming about 20 million barrels a day, the right way to think about the US adding a million barrels a day in strategic stocks is to compare it to how much oil we could lose. Russia because of Putin’s invasion of Ukraine.”

McNally said a million barrels a day wouldn’t be enough to tackle a problem Russia problem And that the price of crude oil around the world determines the price in the United States

“Unfortunately, as long as Russia is a problem for the global oil market, and the risk of turmoil, gasoline prices are likely to go up,” he said, explaining that disruption to supplies anywhere in the world would drive prices up everywhere.

“We all pay the same price, and that is determined by the complex of the global crude oil market.”

As discussed by Hill and McNally replace oil drums in the strategic reserve.

Hill noted that this is usually done when oil prices are cheaper and questioned whether the United States needed to worry about replacing the reserves. McNally agreed that the administration would likely wait until prices fell to $70 or $80 a barrel, but cautioned that reserves need to be refilled sooner rather than later.

“If we don’t refill the reserves, we are in trouble because there are all kinds of other turmoil in the world. The Houthis are attacking Saudi facilities, and Libya is unstable. If we don’t replenish this emergency reserve in the coming years we will be more vulnerable to price hikes when these geopolitical turbulences occur as It always happens.”

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“If we don’t replenish next year — I don’t want people to panic too much at home, right? So we’re talking about 180 million barrels, and there will still be over 400 million barrels… correct me if the math is wrong there, in the strategic reserves.” , which also exists for things happening in the US…are we okay, right now?” asked Hill.

“Not really,” McNally replied, noting that it was a bipartisan problem.

Democrats and Republicans have been extremely irresponsible to the Strategic Petroleum Reserve.

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gas prices trending Follow a little less Biden’s ad. According to AAA, the average fell to $4.192 a gallon after hitting $4.33 on March 11.

This time last year, Americans were paying an average of $2.87 per gallon.