Energy Policy: A Phone Call Away

Suddenly, the Biden administration is asking the domestic oil and gas industry to boost production to meet our own needs and those of our allies in Europe.

(Source: Hart Energy, Shutterstock.com)

[Editor's note: A version of this story appears in the May 2022 issue of Oil and Gas Investor magazine.]

It’s crazy how quickly things can change. A few months ago, the U.S. oil and gas industry was shunned by policymakers and investors alike. Today, however, soaring high commodity prices, a declining economy, a war in Europe and a looming election have changed all of that. Suddenly, the Biden administration is asking the domestic oil and gas industry to boost production to meet our own needs and those of our allies in Europe. Certain members of Congress are even accusing the industry of holding back production to keep prices higher.

Look no further than actual words for evidence of the shift in rhetoric. On a trip to Europe late last year, President Biden stated, “… the idea we’re going to be able to move to renewable energy overnight and not have—from this moment on, not use oil or not use gas or not use hydrogen is just not rational.” U.S. Special Presidential Envoy for Climate John Kerry said recently that “gas is going to be a key component in the energy transition.” In March, U.S. Energy Secretary Jennifer Granholm said. “… we need more supply ... right now, we need oil and gas production to rise …” Quite the turnaround from what administration officials were saying during the first several months of 2021.

So, what changed?

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