Chevron Corp. said any short-term efforts by the Biden Administration to ease crude prices should be backed up by long-term commitments to support investment in America’s domestic oil industry.
President Joe Biden is considering releasing barrels from the Strategic Petroleum Reserve to soften pain at the pump as West Texas Intermediate surged to more than $100 a barrel Tuesday as a result of Russia’s invasion of Ukraine. But without a “balanced and pragmatic conversation” about energy security and transition, such a move would have little long-term effect, Chief Executive Officer Mike Wirth said.
“What would be best to accompany” a reserve release “would be an attitude to support investment in U.S. resource development,” Wirth said on a call with reporters. That would “ensure that this country remains strong from an energy security standpoint.”
The domestic oil industry has felt shunned by the Biden administration since it took office due to restrictions on drilling Federal lands in its early days, followed up by pleas to OPEC to increase oil production once prices became elevated. As the war in Ukraine brings the possibility of sanctions that would limit the trade in crude from Russia — one the world’s biggest producers — America’s oil industry could be one of Biden’s best ways of reducing energy prices.
Devon Energy Corp. CEO Rick Muncrief said Monday he was “mystified” why there hadn’t been any dialog between the administration and oil producers. An appeal from the president may have provided some incentive for U.S. shale to accelerate production growth and ease what’s fast-becoming a major driver of cost-inflation around the world, Muncrief said.
Senator Joe Manchin, a West Virginia Democrat, joined the fray Monday evening, calling for a series of hearings on energy independence.
“We produce energy cleaner than anybody in the world,” Manchin said. “We’re buying 650,000 barrels a day from Russia. It’s ridiculous. Totally ridiculous.”
Source: Bloomberg
