US oil industry says Biden must boost domestic output after OPEC cuts
The US fossil fuel industry had harsh words for President after OPEC announced dramatic production cuts, saying that the administration now has no choice but to encourage more domestic output.
'The has one option left and it is the one option they should have never turned away from in the first place - the US-based oil and gas industry,' tweeted the US Oil and Gas Association on Wednesday.
'Life comes at you pretty fast....' the trade group added in a mocking jibe, following OPEC's announcement that it will slash oil production by about 2 million barrels per day, constraining supply at a time when gas prices are already painfully high.
US oil producers, who accuse the Biden administration of smothering domestic production with overbearing regulations, responded to the OPEC move by arguing that America must dramatically boost its own output.
On the campaign trail in 2020, Biden vowed to 'end fossil fuel' due to concerns about climate change, and his administration has proposed and enacted a number of stricter regulations that have discouraged new investment in drilling and refining.
Now, with gas prices averaging a painful $3.83 nationwide and poised to rise rapidly over supply concerns, the energy crunch could come back to hurt Democrats in the looming midterm elections.
Dan Kish, senior vice president at the pro-fossil fuel Institute for Energy Research, found irony in the situation.
'President Biden and his administration have done everything within their power from day one to unilaterally disarm American energy production and he now wants to blame everyone else for his dangerous policies,' said Kish, according to .
'His routine is well past getting old, and Americans are going to pay the price for his continuing assault on American energy,' he added.
'This Administration's energy policies are nonsensical and making us more dependent on foreign sources,' said Anne Bradbury, CEO of the American Exploration and Production Council.
'Instead, the Biden Administration should be focused on increasing production here in the US through thoughtful and comprehensive energy policy that helps bring down costs and makes us less reliant on foreign sources,' she added.
'The solution to meeting demand for affordable, reliable energy is right here in the United States,' said American Petroleum Institute President and CEO Mike Sommers.
'We face a growing energy crisis driven by geopolitical instability and U.S. policymakers should be doing everything in their power to produce more energy here in America, not urging foreign regimes for more oil,' he added.
Meanwhile, the White House denied reports that it plans to ease sanctions on Venezuela in a desperate bid to boost oil exports from the socialist dictatorship.
'Our sanctions policy on Venezuela remains unchanged. We will continue to implement and enforce our Venezuela sanctions,' White House National Security Council Spokesperson Adrienne Watson told Reuters on Wednesday.
Watson said the United States has no plans to change its Venezuela sanctions policy 'without constructive steps' from Venezuelan President Nicolás Maduro to restore democracy
It followed a report from the that Washington was preparing to ease some sanctions on Venezuela to allow Chevron Corp to resume pumping oil there.
The newspaper reported that in exchange for the sanctions relief, Maduro's government would resume talks with the country's opposition to discuss conditions needed to hold free and fair presidential elections in 2024.
The White House said on Wednesday that 'it's clear' the OPEC+ oil alliance 'is aligning with Russia' after it announced a massive production cut of two million barrels.
It stands to be a big boost for Moscow, despite the West's efforts to choke off oil and gas revenues as a source of cash flow to fund Russia's illegal invasion of Ukraine.
Meanwhile, American drivers could face another increase in gas prices in what could end up being a massive setback for the Biden administration.
Energy ministers from the OPEC cartel, whose leading member is , and allied non-members including Russia met in person at the group's Vienna headquarters for the first time since early 2020.
Their announced production cutback on Tuesday is the largest since the start of the COVID-19 pandemic. It comes after oil barrel prices dropped roughly a quarter in just three months, now around $90, amid fears of a looming global recession.
However, some parts of the US have seen prices jump back up again by up to 60 cents per gallon, according to the Washington Post, underscoring the already-precarious environment.
President Joe Biden was asked about OPEC+'s decision as he boarded Marine One ahead of a visit to hurricane-ravaged Florida but told reporters he 'needs to see the details.'
He said he was 'concerned' and that it was an 'unnecessary' step, according to reports.
A joint statement from White House National Security Advisor Jake Sullivan and National Economic Council Director Brian Deese said Biden 'is disappointed by the shortsighted decision.'
'At a time when maintaining a global supply of energy is of paramount importance, this decision will have the most negative impact on lower- and middle-income countries that are already reeling from elevated energy prices,' the statement read.
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