Granholm urges U.S. energy companies to boost oil, gas production (NYSEARCA:XLE)
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In the friendliest rhetoric yet from the Biden administration toward the U.S. oil and gas industry, U.S. Energy Secretary Jennifer Granholm appealed to energy companies Wednesday to produce as much oil and gas as they can to help meet global demand as a result of the crisis caused by Russia’s war in Ukraine.
“We are on a war footing,” Granholm told the CERAWeek by S&P Global energy conference in Houston. “The DoE and the Biden administration is ready to work with you… We need oil and gas production to rise to meet current demand.”
While the White House remains focused on the ongoing energy transition and reducing reliance on fossil fuels, Granholm said President Biden also recognizes the imperative for more domestic oil and gas in the present – “We can walk and chew gum at the same time.”
Both Granholm and International Energy Agency head Fatih Birol said major consumers could take more barrels from strategic reserves, after recently agreeing to release 60M barrels; “That may have to happen again,” Granholm said. “We are very focused on alleviating pain at the pump.”
Biden said this week that his administration is not holding back production, pointing to 9K approved but unused drilling permits on federal land held by oil companies.
While oil executives say a friendlier federal policy is needed, any significant acceleration of U.S. production growth likely would take as long as a year.
