The Biden administration has reportedly been speaking to oil and gas companies about lowering the cost of fuel as high gas prices have been one of the many problems the administration has struggled to address.
“Energy costs are rising worldwide, in some cases leading to shortages in major economies like China and India. In the United States, the average retail cost of a gallon of gas is at a seven-year high, and winter fuel costs are expected to surge, according to the U.S. Energy Department. Oil-and-gas production remains below the nation’s peak reached in 2019,” Reuters reported. “The talks with energy companies touched on several issues, including prices, according to a third person familiar with the discussions. The administration has been in discussions with the oil industry over limiting methane emissions in recent months.”
A White House official told Reuters that they were “closely monitoring the cost of oil and the cost of gas Americans are paying at the pump” and suggested that “anti-competitive practices” could be responsible for rising costs, although they provided no evidence.
“It can take six months to drill and complete a new well and bring the oil and gas to market,” the report added. “Any call by the White House for an increase in U.S. production is likely to fall on deaf ears, according to one oil executive, who did not want to be identified criticizing the approach. The industry has also been unhappy with some of President Joe Biden’s earlier actions, including a temporary drilling halt on federal lands, that they see as an attack on the industry.”
Anne Bradbury, CEO at the American Exploration and Production Council, told Reuters, “By pursuing policies that restrict supply and make it harder to produce oil and natural gas here in America, Americans will have to pay more for their energy.”
The news comes as Democrat President Joe Biden threatened private companies on Wednesday if they did not fix supply chain issues, which has been an ongoing problem for months, but the administration only now seems to be trying to take aggressive action to fix it.
“If the private sector doesn’t step up, we’re going to call them out and ask them to act,” Biden said. “I want to be clear, this is an across-the-board commitment to going to 24/7. This is a big first step in speeding up the movement of materials and goods through our supply chain but now we need the rest of the private sector chain to step up as well.”
“All of these goods won’t move by themselves,” Biden continued. “For the positive impact to be felt all across the country and by all of you at home, we need major retailers who ordered the goods and the freight movers who take the goods from the ships to factories and to stores to step up as well.”