Darren Woods from Exxon Mobil, the CEO of Exxon Mobil, stated that the Biden administration’s plan for reducing fuel exports could lead to a reduction in global supplies and increase gas prices. This was reported by The Wall Street Journal on Friday.
Woods stated that reducing global supply by limiting U.S. imports to build regional-specific inventory will only increase the global supply gap.
A spokesperson for the DOE told the Daily Caller News Foundation that fuel stocks in some parts of the country are at an unacceptable level after five years. In a Wednesday speech, President Joe Biden stated that Hurricane Ian had impacted the production of at most 190,000. barrels per day.
The DOE spokesperson stated that “international events continue to impact domestic oil and gas markets. The administration has impressed upon it that it must make more to ensure fair prices, adequate supply for all Americans, and meet the needs of our allies.
According to the Energy Information Administration (EIA), U.S. stocks have fallen significantly in the past 2021, with a particular drop in New England’s distillate products. According to EIA data, gasoline inventories fell by 2.4million barrels in the week ended Sept. 23.
According to the WSJ, Woods stated that Exxon would be able address supply disruptions by moving fuel from its Midwest facilities to the Northeast without the government’s intervention.
Biden in March announced that U.S. energy companies would increase liquefied gas deliveries to Europe to address Europe’s fuel shortages, which are being exacerbated due Russia’s invasion Ukraine. In August, however Energy Secretary Jennifer Granholm threatened to use “emergency actions” to force oil companies to reduce exports and address the historically low levels in refined petroleum products in New England.
After falling for almost 100 days, prices at the pump started rising again on Sept. 21. AAA data also shows that the average national gasoline price on Friday was $0.62 more than in September 2021.