At the steps of the Capitol (Photo FCR)
WASHINGTON, DC – Is it government regulation or pressure from shareholders that’s keeping oil companies from increasing supplies of oil domestically? According to Rep. Diana DeGette (CO-D) the Chairwoman of the Energy and Commerce Subcommittee on Oversight and Investigations, when the companies are “honest”, it’s their push for higher profits.
In a hearing on Wednesday, leaders of six major energy-producing companies testified on why there’s such a disconnect between the price of oil and the price of gasoline at the pump.
The Ranking Member of the Committee, Rep. Morgan Griffith (VA-R) countered saying the majority is laying the blame for the problem at the wrong feet by providing examples of how the Biden Administration attacked the industry from day one, in a push for all-electric vehicles.
The sudden drop in demand during the pandemic caused oil prices to plummet and led energy companies to cut back investment in increasing production and “this reduction in investment laid the foundation for our current market and supply challenges” explained Darren Woods, CEO of ExxonMobil.
He added that no single company sets the price of oil or gasoline, the market establishes the price based upon available supply and the demand for that supply. Continued investments in new production are the only way to achieve balanced markets and more affordable prices, and the government has a critical role to play.
“Policies need to provide certainty and improved predictability” Woods concluded. “Consistent, efficient, and effective policies will help spur further investment in U.S. oil and gas production”.
(SOURCE: All Ag News)
