White House asks Congress for $500 million to upgrade US oil reserve

The US administration has asked Congress for $500 million to modernize the country’s strategic oil reserve. Reuters reported this on Wednesday.

According to him, the budget request sent by the White House to Congress on November 15 notes that these funds will allow the national reserve to “maintain the level of operational readiness, as well as mitigate the expected shortage [нефти] due to supply chain issues, the pandemic and associated schedule delays.” The funding will be used to upgrade all four oil storage facilities.

Earlier, as part of the mentioned budget request, the US administration, in particular, asked lawmakers to allocate another $ 37.7 billion to it for purposes related to supporting Ukraine. As Reuters explains, funds for the modernization of the oil reserve are included in this amount. It also included $ 126.3 million to finance the measures of the US National Nuclear Security Administration (part of the Department of Energy) to protect against potential nuclear and radiological incidents in Ukraine. In addition, according to Washington, these funds will help Ukraine in ensuring the security of nuclear and radioactive materials and preventing their illegal smuggling.

At the end of March, the President of the United States Joe Biden announced that the United States will release 1 million barrels of oil per day from its strategic national reserve for six months in order to reduce gasoline prices in the country. According to Reuters, against the backdrop of the release of the largest volumes of oil in history, its strategic reserves in the United States in September fell to 434.1 million barrels, which is the lowest level since 1984. A year ago, the strategic oil reserves, located in the states of Texas and Louisiana, contained 621 million barrels.

As of November 11, oil reserves in the reserve amounted to about 392 million barrels. In October, Biden announced a decision to put up for sale another 15 million barrels of oil from the strategic reserve. At the same time, the US administration announced its readiness to release additional volumes of oil from national reserves next winter, if necessary.

President of the Russian Federation Vladimir Putin On February 24, he announced a military operation in Ukraine in response to a request from the leaders of the Donbass republics for help. The West then imposed large-scale sanctions against Russia and increased arms supplies to Kyiv by billions of dollars.

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