Oil and gas production volumes in the USA are below the peak values of 2019.
The cost of energy resources has increased worldwide, in some cases leading to a shortage of fuel in large economies such as China and India. In the USA, the retail price of gasoline has reached a seven-year high; the onset of winter can lead to an even more significant increase in prices because fuel oil and gas are used for heating homes. At the same time, the volume of oil and gas production in the United States is below the peak values of 2019.
A White House spokesman said: “We are closely monitoring the cost of oil and the cost of gasoline that Americans pay for at gas stations. And we are using all the tools we have to counter anti-market practices in the United States and in the global market to ensure the reliability and stability of energy markets.”
The cost of a barrel of oil produced in the United States has reached $ 80. OPEC member states and other oil producers limit production. The White House has been discussing this issue with Saudi Arabia in recent weeks.
Natural gas prices have also risen sharply this year due to reduced supply and unexpectedly high demand in Europe and Asia.
Producers of shale oil in the United States, which provided a boom in oil production in the last decade, previously reduced drilling of new wells due to low energy prices. In addition, energy companies reacted negatively to some decisions of the Biden administration, particularly the introduction of a moratorium on drilling on federal lands.
“Due to the policy of limiting supplies and complicating the situation with oil and gas production here in America, Americans will be forced to pay more for energy,” said Anne Bradbury, head of the American Exploration and Production Council, which represents the interests of independent energy companies.