Biden Admin Reiterates Call for OPEC to Increase Oil Production as Gas Prices Rise

What’s the story?

• The Biden administration on Wednesday reiterated its call for the Organization of the Petroleum Exporting Countries (OPEC) and its partner nations to increase their production of oil to counter the rise in gasoline prices.
• National Security Adviser Jake Sullivan wrote in a statement that while OPEC+ upped its production after the administration’s last call for it to pump more oil, the increases are “simply not enough.” Sullivan wrote that, “President Biden has made clear that he wants Americans to have access to affordable and reliable energy, including at the pump.” He added:

“Higher gasoline costs, if left unchecked, risk harming the ongoing global recovery. The price of crude oil has been higher than it was at the end of 2019, before the onset of the pandemic.”

• The Bureau of Labor Statistics’ July 2021 inflation report noted that gasoline prices have increased 41.8% year-over-year, including a 2.3% rise in July following a 2.6% jump in June.
• AAA reported that as of Wednesday, gasoline prices are at a seven-year high of $3.19 per gallon, up from $2.17 per gallon a year ago.
• This comes after President Joe Biden has taken a series of executive actions that stopped several projects that would increase oil and natural gas production in the U.S. and North America in the name of fighting climate change. Those actions include halting new leases for oil and natural gas development on federal lands, blocking production in the Arctic National Wildlife Refuge, and revoking the permit for the Keystone XL pipeline. (The pause on new leases is currently being challenged in federal courts.)
• Sen. James Lankford (R-OK) released a statement criticizing the Biden administration for calling on OPEC to boost oil production after reducing U.S. energy production:

“Why is the President of the United States reaching out to the President of Russia and the leadership of OPEC to ask for more oil production? Americans are absolutely capable of producing the oil needed to lower the cost at the pump. The President should return to energy-focused policies that promote American jobs, instead of relying on foreign jobs and foreign production for our energy.”

What is OPEC?

• OPEC is a cartel consisting of 13 countries that collectively produce nearly half of the world’s oil. 
• The ongoing negotiations include a broader group known as OPEC+ which includes 10 additional petroleum-producing countries such as Russia. 
• The U.S. is neither a member of OPEC proper nor is it among the OPEC+.

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• Biden Revokes Permit for Keystone XL Pipeline - Do You Agree With the Move?

— Eric Revell

(Photo Credit: Oil Field: iStock.com / bashta | Gas Pump: iStock.com / Extreme Media | Biden: Gage Skidmore via Flickr / Creative Commons)