In an effort to curb high gasoline prices, White House national security adviser Jake Sullivan called on OPEC+ Aug. 11 to turn on the taps amid pandemic-related cuts.

“Higher gasoline costs, if left unchecked, risk harming the ongoing global recovery,” Sullivan said in a statement Aug. 11, adding the production increase agreed by OPEC+ was “simply not enough” for economic recovery.

The request drew criticism from U.S. energy organizations, which said the administration should focus on growing American energy leadership instead of relying on foreign supply to meet energy needs.

“It’s pretty simple: if the president is suddenly worried about rising gas prices, he needs to stop killing our own energy production here on American soil,” U.S. Sen. John Cornyn, R-Texas, said in a statement. “Begging the Saudis to increase production while the White House ties one hand behind the backs of American energy companies is pathetic and embarrassing.”

This is the time to focus on safe and responsible development of the country’s rich energy resources, said Frank Macchiarola, senior vice president of policy, economics and regulatory affairs for the American Petroleum Institute (API).

“Globally, we are seeing energy demand that has continued to outpace supply and given these conditions, we should be focused on growing American energy leadership, not returning to the days of relying on OPEC to meet our supply needs,” Macchiarola said in an API blog post.

Todd Staples, president of the Texas Oil & Gas Association, also condemned the actions of Biden administration, noting Biden’s cancellation of energy infrastructure projects and suspension of federal oil and natural gas leasing permits earlier this year.

“And now the administration wants to count on OPEC+ to increase production to bring stability to energy markets. Why promote jobs in other countries and not American jobs? Why rely on other countries while hamstringing our own energy sector?” Staples said in a statement.

He continued, “The best way to ensure Americans and our trade partners have access to clean, affordable and reliable energy is to encourage homegrown, domestic energy that supports jobs and economic growth while continuing our commitment to environmental progress,” Staples said.

Ben Shepperd, president of Midland-based Permian Basin Petroleum Association, said it’s “a shame” for White House to beg foreign governments, “with abysmal records of environmental stewardship, to come to the aid of American consumers.”

He said, “For America’s oil field, the Permian Basin, the Biden administration is contemplating job killing regulations on American producers, all the while signaling to foreign, state-owned producers, to drill baby drill.”

Texas Railroad Commissioner Wayne Christian called on the president to reconsider discussions with OPEC+ and instead unleash the private sector to produce oil domestically.

“By frequently attempting to weaken the American oil and gas industry, you are not reducing emissions, you are merely shipping them overseas while killing American jobs, increasing costs to American consumers and harming our country’s national security,” Christian said In an open letter to President Biden.

In July, OPEC+ agreed to boost output by 400,000 bbl/d each month starting in August until the rest of the 5.8 million bbl/d cut is phased out. OPEC+ is scheduled to hold another meeting on Sept. 1 to review the situation.

Comments