• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 23 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days The United States produced more crude oil than any nation, at any time.
  • 7 days e-truck insanity
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 7 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 10 days Bankruptcy in the Industry
Oil Moves Higher on Fuel Inventory Draws

Oil Moves Higher on Fuel Inventory Draws

WTI crude rallied above $86…

OPEC+ Rules in an Increasingly Tight Oil Market

OPEC+ Rules in an Increasingly Tight Oil Market

The market is growing increasingly…

M&A Fever Hits Canada's Oil and Gas Industry

M&A Fever Hits Canada's Oil and Gas Industry

The mergers and acquisitions wave…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

White House Quietly Calls On U.S. Oil Companies To Increase Production

  • Short of an official request, the White House is now encouraging U.S. drillers to produce more crude.
  • The White House has received a lot of pushback in recent days for not tapping what many see as at least a partial solution to the headache that is high oil prices—U.S. shale.
Texas rig

In a move that likely angered his environment-conscious base, the White House has issued a muted request for U.S. oil companies to increase crude oil production in the wake of high crude oil and gasoline prices.

Though words are different than deeds—and President Joe Biden’s deeds have been decisively anti-fossil fuel expansion—a White House official told U.S. oil companies on Tuesday that they could increase production if they want.

“Prices are quite high, the price signal is strong. If folks want to produce more, they can and they should,” White House National Economic Council Deputy Director Bharat Ramamurti said in an interview today.

While the words fell short of an official request to U.S. oil companies to increase production, it is decidedly different from ignoring U.S. oil companies’ production plans altogether while asking OPEC+ to do the heavy lifting when it comes to oil production—to no avail, no less.

Ramamurti also dispelled the notion that the U.S. Administration was somehow curtailing crude oil production.

But U.S. oil companies have long held that while the Administration hasn’t directly restricted U.S. output, the energy policies flowing out of the White House have put a damper not only on the attitude involving crude oil production but has made it far more difficult for oil companies to ramp up.

The White House has received a lot of pushback in recent days for not tapping what many see as at least a partial solution to the headache that is high oil prices—U.S. shale.

Oil companies such as Devon Energy have said they have been perplexed that the White House has not called on them directly to ramp up oil production. And Ramamurti’s comments today still do not rise to the level of asking U.S. producers for more oil.

By Julianne Geiger for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on March 01 2022 said:
    This is a call in the wilderness. US shale oil production is a spent force. Even if Brent crude exceeded $150 a barrel, a comeback of US shale oil production to pre-pandemic level is a thing of the past.

    The reason is that the sweet spots in the shale plays have already been utilized forcing shale oil drillers to move to less productive and more costly to produce spots. Another reason is declining well productivity and rising costs of production. And a third reason is that shale oil producers have less access to capital expenditure as before the pandemic because investors want a good return on their investments rather than a rising unproductive production.

    Still, shale oil drillers’ failure to raise production significantly has far less to do with capital discipline and far more to do with inability to do so.

    The maximum shale oil production could rise is estimated at 200,000-300,000 barrels a day (b/d) to 11.2-11.3 million barrels a day (mbd) in 2022. This is a minuscule drop in the ocean in the face of accelerating rise in oil prices.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News