Exxon Mobil fired back at President Joe Biden’s letter demanding oil companies to find “near-term solutions” to record-shattering gasoline prices and decades-high inflation.
“In the short term, the U.S. government could enact measures often used in emergencies following hurricanes or other supply disruptions,” the oil giant said in a statement late Wednesday. The oil company then suggested a waiver of the Jones Act and some fuel specifications to increase supplies.
They continued with long-term options that hammered Biden’s poor energy policies. For example, the federal government “can promote investment through clear and consistent policy that supports U.S. resource development, such as regular and predictable lease sales, as well as streamlined regulatory approval and support for infrastructure such as pipelines.”
The letter was sent to the heads of ExxonMobil, Chevron, BP America, Shell USA, Phillips 66, Marathon and Valero. Biden urged the oil companies that they needed “to work with” his Administration.
The American Petroleum Institute, which represents the industry, reportedly said fuel capacity had been diminished. They highlighted the Biden Administration seeking to move away from fossil fuels as part of its climate agenda as reasons for the reduction.
According to the U.S. The Energy Information Administration (EIA), one 42-gallon barrel of crude oil produces 19 to 20 gallons of gas and 11 to 12 gallons of diesel fuel. The EIA records showed in January 2020; production stood at 18,976 barrels of crude per day. That total is the highest daily production rate since the 1980s. However, in March 2022, production had dropped to 17,944, a difference of 1,032 barrels. So, the fuel deficit since gas was in the $2.00 range is approximately 20,000 gallons of gas and 12,000 gallons of diesel per day.
“While we appreciate the opportunity to open increased dialogue with the White House, the administration’s misguided policy agenda shifting away from domestic oil and natural gas has compounded inflationary pressures and added headwinds to companies’ daily efforts to meet growing energy needs while reducing emissions,” American Petroleum Institute CEO Mike Sommers said.
Bryon York, the chief political correspondent for the Washington Examiner, tweeted, “In a letter to Exxon CEO, Biden twists himself up trying to cast blame for high gas prices. He’s been blaming ‘Putin’s price hike’ for months but now wants to blame oil companies, too. So, he adjusts the story…”
In letter to Exxon CEO, Biden twists himself up trying to cast blame for high gas prices. He’s been blaming ‘Putin’s price hike’ for months, but now wants to blame oil companies, too. So he adjusts the story… https://t.co/48qgWyTGFp pic.twitter.com/ifRss9m2Kh
— Byron York (@ByronYork) June 15, 2022
The @SquawkCNBC tweeted, “Joe Biden owns this inflation,” says Sam Zell on President Biden’s letter to energy companies. “Blaming oil companies this week doesn’t avoid the reality that the real blame here is policy or lack thereof.”
“Joe Biden owns this inflation,” says Sam Zell on President Biden’s letter to energy companies. “Blaming oil companies this week doesn’t avoid the reality that the real blame here is policy or lack thereof.” pic.twitter.com/1Ef5NDrmm3
— Squawk Box (@SquawkCNBC) June 15, 2022
On Thursday, White House Press Secretary Karine Jean-Pierre took questions about why Biden was pressuring oil companies to refine more oil and why not drill? Jean-Pierre answered, “We don’t need to do that.”
The Epoch Times noted the mirroring of Jean-Pierre’s words to climate czar John Kerry during a forum last week. Kerry alleged that people who argued that the U.S. needs “more drilling” to offset the high gas prices are pushing a “false narrative.” As for new drilling, Kerry responded: “No, we don’t. We absolutely don’t.”
According to the EIA, on November 2, 2020, a gallon of gas cost $2.11. The price increase began by the end of the month and has steadily increased since the Biden administration took office.