Following President Biden’s letter to many ‘Big Oil’ executives, threatening them with forced production quotas, windfall taxes, and/or price-caps (because all those things have proved so successful in past crises… not), Exxon Mobil issued a reasoned response to The White House accusations and scapegoating: (emphasis ours)
We have been in regular contact with the administration to update the President and his staff on how ExxonMobil has been investing more than any other company to develop U.S. oil and gas supplies. This includes investments in the U.S. of more than $50 billion over the past five years, resulting in an almost 50% increase in our U.S. production of oil during this period.
Globally, we’ve invested double what we’ve earned over the past five years — $118 billion on new oil and gas supplies compared to net income of $55 billion. This is a reflection of the company’s long-term growth strategy, and our commitment to continuously invest to meet society’s demand for our products.
Specific to refining capacity in the U.S., we’ve been investing through the downturn to increase refining capacity to process U.S. light crude by about 250,000 barrels per day – the equivalent of adding a new medium-sized refinery. We kept investing even during the pandemic, when we lost more than $20 billion and had to borrow more than $30 billion to maintain investment to increase capacity to be ready for post-pandemic demand.
In the short term, the U.S. government could enact measures often used in emergencies following hurricanes or other supply disruptions — such as waivers of Jones Act provisions and some fuel specifications to increase supplies.
Longer term, government can promote investment through clear and consistent policy that supports U.S. resource development, such as regular and predictable lease sales, as well as streamlined regulatory approval and support for infrastructure such as pipelines.
Additionally, buidling on Exxon’s suggestions, the American Petroleum Institute – which represents ‘Big Oil’ – sent a letter to the president offering some advice.
1. Lift Development Restrictions on Federal Lands and Waters
The Department of the Interior (DOI) should swiftly issue a 5-year program for the Outer Continental Shelf and hold mandated quarterly onshore lease sales with equitable terms. DOI should reinstate canceled sales and valid leases on federal lands and waters.
2. Designate Critical Energy Infrastructure Projects
Congress should authorize critical energy infrastructure projects to support the production, processing, and delivery of energy. These projects would be of such concern to the national interest that they would be entitled to undergo a streamlined review and permitting process not to exceed one year.
3. Fix the NEPA Permitting Process
Your administration should revise the National Environmental Policy Act (NEPA) process by establishing agency uniformity in reviews, limiting reviews to two years, and reducing bureaucratic burdens placed on project proponents in terms of size and scope of application submissions.
4. Accelerate LNG Exports and Approve Pending LNG Applications
Congress should amend the Natural Gas Act to streamline the Department of Energy (DOE) to a single approval process for all U.S. liquefied natural gas (LNG) projects. DOE should approve pending LNG applications to enable the U.S. to deliver reliable energy to our allies abroad.
5. Unlock Investment and Access to Capital
The Securities and Exchange Commission should reconsider its overly burdensome and ineffective climate disclosure proposal and your administration should ensure open capital markets where access is based upon individual company merit free from artificial constraints based on government-preferred investment allocations.
6. Dismantle Supply Chain Bottlenecks
You rescind steel tariffs that remain on imports from U.S. allies as steel is a critical component of energy production, transportation, and refining. Your administration should accelerate efforts to relieve port congestion so that equipment necessary for energy development can be delivered and installed.
7. Advance Lower Carbon Energy Tax Provisions
Congress should expand and extend Section 45Q tax credits for carbon capture, utilization, and storage development and create a new tax credit for hydrogen produced from all sources.
This regime of incompetents is doing “all they can” to lower fuel prices… except for ANYTHING that would actually help. The solution is SCREAMING at them and they can’t notice it… because AOC won’t buy off on it.
No one thinks the restorative process needed after idiot Biden’s widespread destruction of our energy industry will substantially lower prices immediately. That stupid dumbass Granholm keeps saying there is no short term solution; we KNOW. You’ve f**ked this up REAL GOOD. It will take a LONG TIME to fix, but the longer we wait, the longer it will be before we are once again secure.
How rich is it when idiot Biden accuses the energy industry of “blaming the war” for their problems? WE are not at war; the only influences upon us from that war in Ukraine (which, coincidentally, idiot Biden’s energy policies instigated) are what idiot Biden has inflicted upon us.
Biden is just hammer more nails into the Coffins of the liberal Democrats trying to get reelected and frankly they deserve to be totaly voted out of the Government and out of politics for good
But joe will allow none of the things listed by the American Petroleum Institute [i.e. “big oil.]
Instead joe might appoint Hunter, his son, to an illegitimate post of “Energy Czar.”
After all, Hunter is “the smartest man [joe] knows.”
And, Hunter has all that enegy experience over at Ukraine.
Or Biden will appoint someone who belongs to some Eco-Freak group like Greenpeace,EDF, or NRDC,Friends of the Earth Etc and Clinton did with Bruce Babbit who was from the liberal League of Conservation Voters
Hard to argue with reality.
White House Spox Confirms Joe Biden is Moving Forward with Plans to End Fossil Fuel Despite Soaring Gas Prices