White House Pledges to Work with All Producers and Consumers

In a White House press briefing by Press Secretary Karine Jean-Pierre this week, Jean-Pierre highlighted that the Biden administration will “continue to work with all producers and consumers … to ensure energy markets support economic growth and … lower prices for the American consumer”.

“The main focus for this President is the American people,” Jean-Pierre said in the press briefing.

“That is what the President is going to continue to focus on … how do we lower the prices for the American people,” Jean-Pierre added.

“That’s why the Inflation Reduction Act is so important, when you think about energy security. That’s why many of the other - like CHIPS and Science Act, all of the other bipartisan infrastructure legislation - those historic pieces of legislation are so critical and important,” Jean-Pierre continued.

In the briefing, the White House Press Secretary noted that U.S. oil production “is on track to break a historic record this year”. 

According to the U.S. Energy Information Administration’s (EIA) latest short term energy outlook (STEO), which was released at the beginning of March, U.S. crude oil production will reach 12.44 million barrels per day this year. Of this figure, the Lower 48 States are expected to produce 10.15 million barrels per day, while the Federal Gulf of Mexico and Alaska are anticipated to produce 1.87 million barrels per day and 0.42 million barrels per day, respectively, the STEO shows. 

U.S. oil production is expected to hit 12.63 million barrels per day in 2024, according to the STEO, which highlighted that the country’s oil output came in at 11.88 million barrels per day in 2022.

The EIA’s latest STEO anticipated that the retail gasoline price in the U.S. will be $3.36 per gallon in 2023 and $3.11 per gallon in 2024. It averaged $3.97 per gallon in 2022, the STEO highlighted.

“Our U.S. gasoline inventory forecast for February through June 2023 reflects increasing refining activity and gasoline production, as well as gasoline consumption that remains below pre-pandemic levels,” the March STEO noted.

“Although we expect distillate refining margins to remain higher than gasoline refining margins, the limited ability of refiners to shift their product yields will keep gasoline inventories within the 2018– 2022 range from April through the end of the forecast,” it added.

“We expect that rising gasoline inventories, along with falling crude oil prices, will gradually decrease gasoline prices throughout the forecast period. We forecast retail gasoline prices to average near $3.20 per gallon in the fourth quarter of 2023, down more than 30 cents/gallon from 4Q22, and to decrease further to an average of about $3.10/gallon in 2024,” the STEO continued.

According to the AAA Gas Prices website, as of April 6, the average price of regular gasoline in the U.S. is $3.55 per gallon. Yesterday’s average price was $3.52 per gallon, the week ago average was $3.48 per gallon, the month ago average was $3.40 per gallon, and the year ago average was $4.16 per gallon, the AAA site shows.

In June last year, the U.S. Department of Energy (DOE) confirmed that Secretary of Energy Jennifer M. Granholm led an in-person meeting with CEOs and executives of seven major U.S. oil companies at the DOE headquarters in the morning of June 23. 

“The Secretary made clear that the administration believes it is imperative that companies bring supply online to get more gas to the pump at lower prices,” the DOE said in an organization statement at the time.

“She reiterated that the President is prepared to act quickly and decisively, using the tools available to him as appropriate, on sensible recommendations,” the DOE added in the statement.

To contact the author, email andreas.exarheas@rigzone.com