According to market analysts, most of the increase in energy costs is beyond the control of the White House, and the economy has rebounded as China recovers from the epidemic. Prior to the outbreak, US oil production was sluggish, and oil companies, which had been hit hard by falling demand, were slow to dig new wells. After oil prices plummeted, OPEC oil cartel was also careful to close the loopholes.
Biden’s management has asked for an increase in OPEC exports, but there are other options to lower prices. Energy Secretary Jennifer Granhol also said last week that the administration was considering releasing oil from the Strategic Petroleum Reserve.
Oil industry leaders and experts The White House team has experience in renewable energy markets, but relatively few people with knowledge of the oil market – the current problem.
“Senior workers are busy trying to identify alternatives to lower fuel prices that they believe are driving [the] Inflation has increased, ”said Stephen Brown, a longtime energy lobbyist and current strategist at RBJ Strategies. Some manufacturers talk to them, but this is not the case with many friends in the industry.
A mobilization source focused on fuel and gasoline prices, White House officials said Tuesday night. A White House spokesman declined to comment on the meeting or the oil industry. Someone else He said the meeting included senior staff and did not necessarily include cabinet members.
The White House is trying to curb high inflation, prompting the Federal Reserve to signal a slowdown in bonds designed to lower long-term interest rates. Binden and his team have targeted bottlenecks in the supply chain and contributed to high prices. The port of Los Angeles will open 24 hours a day on Wednesday and major companies, including UPS and FedEx, will extend their operations.
“I want to be clear, this is the board’s commitment to go 24/7,” the White House said in a statement. But now we want to elevate the rest of the private sector.
Some in the oil industry are using the rise in oil prices to push back on democratic promises to increase costs for oil and gas drilling on public lands.
“In order to have a stable and balanced supply of energy here in the United States, the Biden administration must support the domestic production of oil and natural gas, ensure sustainable production on federal land, and work with the industry in compliance with smart and methane regulations. , And stop calling for higher taxes on the U.S. oil and gas industry, ”said Ann Bradbury, executive director of the American Association for Search and Production.
Biden has promised to approve electric vehicles and renewables such as solar and wind power. But the White House held a meeting with members of the US Petroleum Institute, as White House Climate Adviser for the Oil and Gas Industry. And while the sale of oil and gas has been stalled for some time, the Department of the Interior has approved the Trump administration by approving new permits to dig on public land.
Considering its position on bidding for the new public land drills, it is still hypocritical, and the industry is smart in its call for an increase in OPEC oil production. Industry officials complain that they have not received as much attention as President Donald Trump or even President Barack Obama.
Between the global supply chain problems associated with the epidemic, severe weather events and China With high demand for oil and natural gas, administration officials have repeatedly turned to the industry, sources said.
An overseas oil company wants to know how to manage oil production in the Gulf of Mexico last month after the administration forced it to shut down production in the Gulf of Mexico.
Despite the controversy, market analysts say the federal government has a few steps to attract higher fuel prices. Because the plague keeps people indoors, companies will have to renovate truck drivers and other workers when fuel demand drops last year.
Andrew Lipou, head of Houston-based Liquor Oil Associations, a Houston-based consulting firm, said the increase in pump prices was a direct result of a call by oil companies to delay production and increase costs. In the years since the outbreak, investors have fled the sector, as companies have accumulated debt to produce more and more barrels.
“Years ago they dug like crazy and made no money,” says Lipo. Instead of sending more gas stations to the oil fields, “they must show return to the creators at this time and they are increasing their profitability.”