The decision by the Biden administration to release oil from US reserves is a "mistake", former US Energy Secretary Dan Brouillette said on Wednesday.
"I think this is a badpolicy choice. There is no doubt about it "he told "Capital " Connection one day after the president Joe "Biden announced that 50 "million barrels of oil would be released from the country's strategic oil reserve.
China, India, Japan, South Korea and the UK will also release their oil reserves. oil as part of global efforts by energy-intensive countries to reduce energy prices.
The SPR in the United States is a national security asset intended to p protect the country and its citizens from supply disruptions, such as during emergencies, said Brouillette, who served as energy secretary under former President Donald Trump.
"This is not a supply emergency, and the only emergency I can see in this case is a political emergency," he said.
The Biden administration 's action shows it is concerned about the midterm elections in 2022, Brouillette said.
"This is the reason for the decision - maybe more than anything else - because, like I said earlier, this is not a supply emergency, "he said.
Oil producers in the United States are pumping "about 11 million barrels per day , access to the Energy Information Administration.
"The problem for the United States is not the supply of [oil], it is is the policy, "said Brouillette." I hate to see those kinds of decisions ... Strategic Petroleum Reserve being used in this way. This is unfortunate. "
" This is a mistake, we should notcan be used for these purposes, "he added.
Three presidents have used the SPR as an emergency response tool in the past, according to the Office of
Fossil Energy and Carbon Management. Levies have been ordered to help stabilize the market during the Civil War in Libya, Hurricane Katrina and the Persian Gulf War.
Oil prices have risen by over 60% so far this year with the reopening of economies and a sharp rebound in demand.
The " United States asked OPEC and its allies to increase production in order to reduce prices, but "l ' oil alliance is sticking to its plan to gradually add to the offer.
Brouillette sai dusing the SPR to "counter " OPEC is "relatively ... the wrong approach ", and there are other levers the US can use.
Au Instead of mining the reserves, the US is expected to authorize projects such as the Keystone XL Pipeline, a major US-Canadian pipeline that was expected to transport approximately 830,000 barrels per day of crude from the Alberta tar sands to Nebraska. It was officially canceled in June after Biden revoked a key permit required for a 1,200 mile US portion of the project.
Washington could also allow oil production on federal lands, the former Energy Secretary said.
One of the first things Biden did made during his inauguration in January was to sign a series of executive actions on climate change, including one at stop " new oil and gas leases on public lands and water. The suspension has been blocked for the moment, and a a "record sale of leases overseas was opened this month.
Increasing production is a better way to influence prices, Brouillette said, noting that states United were a swing producer for many years and basically set world oil prices.
"Our ability to produce 13 million barrels of oil per day has really shaped the market for three to four years. "he said. " It is important that we return to this approach - not to use a domestic asset like the strategic oil reserve in order to affect prices. "
- CNBC's Pippa Stevens, Matt Clinch, Natasha Turak and Emma Newburger contributed to this report.