The Biden administration is becoming more aggressive in prodding domestic fossil fuel producers to boost their output amid war overseas and a global energy shortage that has caused the price of gasoline to soar into record territory.
President Biden has been hammered by Republicans for months for the steady rise in prices at the pump, demanding that Mr. Biden use his executive powers and bully pulpit to ramp up American energy instead of focusing on clean energy initiatives and limiting the new drilling on federal lands.
With Russia’s war on Ukraine and a U.S. ban on Russian energy imports continuing to send gasoline prices sky high, the administration has begun calling on oil companies to put the pedal to the metal in boosting output, though the White House isn’t calling it a pivot.
“We are in an emergency, and we have to responsibly increase short-term supply where we can right now to stabilize the market and minimize harm to American families,” Energy Secretary Jennifer Granholm said at the CERAWeek by S&P Global, an annual energy conference featuring top global energy executives, government officials, financial leaders, academics and tech innovators.
“We are on a war footing,” Ms. Granholm told the gathering this week.
A senior Energy Department official said before CERAWeek that they would have private discussions with fossil fuel companies at the conference about boosting domestic production.
The White House frequently brushed aside critics who said the administration could do more to encourage domestic oil output. White House press secretary Jen Psaki consistently boasted about some 9,000 unused oil leases and permits on public lands.
“I don’t think they need an embroidered invitation to drill,” Ms. Psaki told reporters. “These are private sector companies. We recognize that. Many of them are making record profits. We see that. That is all publicly available data. They have pressure to return cash to investors and their shareholders.”
“What we’re saying right now is,” Ms. Psaki continued, “there is a war. We’re asking them to go use the approved permits, use the unused space, and go get more supply out of the ground in our own country.”
Oil and gas companies have seen several years of volatility in global energy markets because of the COVID-19 pandemic. Many are weary or simply unable to flip a switch to increase output without more support from the government and the financial sector.
Industry analysts and executives told the Senate Energy Committee on Thursday that a more supportive administration would help ease concerns that new investments in production will be lost to climate change policy in the near future.
The committee chairman, Sen. Joe Manchin III, agreed.
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“I’m calling on the industry — and the shareholders — to invest and put production before profits,” said the West Virginia Democrat. “But the industry also needs signals from the administration that they will support oil and gas development and production.”
Other Democrats are not convinced that increasing domestic energy production would dent gasoline prices. The average price for a gallon of unleaded fuel sat at $4.32 on Thursday, up 84 cents from one month ago before the war in Ukraine, according to AAA.
“I just think the increased production is likely to be negligible,” said Sen. Chris Murphy, Connecticut Democrat.
Last year, the nation exported nearly 3 million barrels of crude oil per day, accounting for 35% of total U.S. gross petroleum exports, according to the U.S. Energy Information Administration.
The White House and Democrats have placed the onus on oil and gas companies to set aside profits, increase supply and help drive down prices. With an estimated 700,000 barrels of Russian oil that will now need to be replaced, the Biden administration has also turned to Wall Street for help. It’s another reversal for Mr. Biden who previously pressured investors to pump money into clean energy over fossil fuels.
“It’s really up to the oil companies to determine whether they are going to — as well as Wall Street — whether they’re going to reinvest these war profits from high prices back into the economy, raise production and lower prices to American consumers,” Ms. Psaki said. “And that pressure should be on them.”
• Ramsey Touchberry can be reached at rtouchberry@washingtontimes.com.
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