As the U.S. grapples with sky-high oil and gas prices, the Biden administration has asked OPEC+ to help out America instead of going directly to U.S. oil producers.
Will they? President Biden hopes to get an answer on the ask very soon.
“If you take a look at gas prices and you take a look at oil prices, that is a consequence of thus far the refusal of Russia or the OPEC nations to pump more oil. And we’ll see what happens on that score sooner than later,” Biden said during his final day at the COP26 United Nations Climate Summit.
Prices at the pump are averaging $3.40 per gallon, as tracked by AAA.
In September White House Press Secretary Jen Psaki said the administration would “continue to speak to international partners, including OPEC, on the importance of competitive markets and setting prices and doing more to support the recovery.” And in August, National Security Adviser Jake Sullivan said OPEC+’s rate of oil production increases was “simply not enough.”
The move has angered the domestic oil industry, which helped the U.S. achieve energy independence under President Trump that has slipped under Biden, who has rolled out tougher policies for energy companies and has shut down major pipelines.
Harold Hamm, the founder of Continental Resources, blasted the ask during an interview with FOX Business’ Neil Cavuto on Tuesday.
“He’s calling OPEC for more. You know, and they’re calling on Russia for more gas. What’s wrong with that picture? As I said the other day, that all they need do is be making local calls,” he stressed.
Oil prices have surged to multi-year highs with NYMEX crude sitting at $83.91 per barrel through Tuesday, an 72.94% year-to-date run-up. Natural gas has gained 118.27%.
The Energy Information Administration has warned that the cost of heating oil is expected to rise approximately 43% compared to last year due to “higher expected fuel costs as well as more consumption of energy due to a colder winter.” Meanwhile, the agency expects propane costs to rise by 54%, natural gas costs to rise by 30%, and electricity costs to rise by 6%.
