With oil prices high and Americans paying more for gasoline, US Energy Secretary Jennifer Granholm on Wednesday called for oil companies to increase production and offset the spike in pump prices.
The surge in energy costs is a consequence of Russia’s invasion of Ukraine, which prompted Washington and its European allies to impose tough sanctions on Moscow, including a US ban on Russian oil imports announced on Tuesday.
“We are on war footing. We are in an emergency and we have to responsibly increase short-term supply where we can right now to stabilize the market and to minimize harm to American families,” Granholm told the CERAWeek energy conference in Houston.
“In this moment of crisis, we need more supply.”
The United States is a major oil and gas producer, though President Joe Biden has taken steps to curb drilling in parts of the country to encourage increased focus on renewable energy.
But amid the recovery from the Covid-19 pandemic — which caused demand to collapse — fuel prices have surged, contributing to a wave of inflation that has damaged Biden’s approval ratings.
Last week, Biden announced the United States would release 30 million barrels from the strategic petroleum reserve, half of the emergency release coordinated by countries in the International Energy Agency.
Oil prices nonetheless continued to rise in recent days, but on Wednesday they plunged sharply, with the key West Texas Intermediate crude dropping about 11 percent.
The price of gasoline has also been climbing for drivers in the United States, with the American Automobile Association reporting the average price hit $4.25 a gallon Wednesday, up from $3.47 a month ago.