Officials: Oil industry, energy meeting was ‘constructive’
WASHINGTON – An oil industry meeting with Energy Secretary Jennifer Granholm to lower gas prices and boost domestic oil supplies was constructive, but did not produce a major breakthrough, administration and industry officials said Thursday.
The closed-door meeting came as President Joe Biden called on Congress to suspend federal taxes on gasoline and diesel fuel as a way to relieve high gas prices that have frustrated drivers and spurred inflation.
The Democratic president also called on states to suspend their own gas taxes or provide similar relief, and he delivered a public critique of the energy industry for prioritizing profits over production.
“It doesn’t reduce all the pain but it will be a big help,” Biden said Wednesday, referring to the national average of $5 a gallon for gas. Biden said he was doing his part and now wants Congress, states and industry to do their parts as well.
In a joint statement, the American Petroleum Institute and the American
Fuel & Petrochemical Manufacturers said Thursday that challenges facing their industry are complex, from Russia’s war in Ukraine to “market imbalances” leftover from COVID-19 shutdowns that led to reduced demand and production.
The meeting with Granholm “should send a positive signal to the market that the U.S. is committed to long-term investment in a strong U.S. refining industry and aligning policies to reflect that commitment,” the groups said. “Our industry will continue to seek opportunities to work with policymakers to unlock American energy, fuel economic recovery and strengthen our national security.”
In a separate statement, the Energy Department said Granholm reminded the oil companies and refiners their customers, workers and communities “are feeling the pain at the pump because of Putin’s price hike,” a reference to Russian leader Vladimir Putin’s February invasion of Ukraine, which prompted a ban on Russian oil by the United States and many Western allies.
“At a time when Putin is using energy as a weapon, oil companies must deliver solutions to ensure secure, affordable supply,” the Energy Department said.
The meeting at the Energy Department included executives from Exxon Mobil, Chevron, Marathon and Phillips 66 and other large companies. Granholm “made clear that the administration believes it is imperative that companies bring supply online to get more gas to the pump at lower prices,” the Energy Department said.
Biden is prepared to “act quickly and decisively, using the tools available to him as appropriate, on sensible recommendations,” the statement said, citing previous actions by Biden to release one million barrels of oil a day from the Strategic Petroleum Reserve and rally allies to release their own reserves.
Granholm “reiterated the president’s call for (oil executives) to do more to ensure that their companies are passing savings on to their customers,” the statement said.
Chevron CEO Michael Wirth, who told Biden this week the administration “has largely sought to criticize, and at times vilify, our industry,” was conciliatory Thursday.
“Today’s meeting was a constructive conversation about addressing both near-term issues and the longer-term stability of energy markets,” Wirth said in a statement.
“We appreciate Secretary Granholm’s invitation to participate in the conversation, which was an important step toward achieving greater energy security, economic prosperity and environmental protection.”
Biden in recent weeks has criticized oil producers and refiners for maximizing profits and making “more money than God,” rather than increasing production in response to higher prices as the economy recovers from the pandemic and feels the effects of Russia’s invasion of Ukraine.
Responding to Wirth’s criticism, Biden said Tuesday the oil CEO is “mildly sensitive,” adding: “I didn’t know they’d get their feelings hurt that quickly.”
He called Wednesday for a threemonth suspension of the 18.4 cents-agallon federal tax on gas and the 24.4 cents-a-gallon federal tax on diesel fuel. If the gas savings were fully passed along to consumers, people would save just under $3 for a 15-gallon fill-up of gas.