White House Reacts to OPEC+ Move

White House Reacts to OPEC+ Move
U.S. President Joe Biden is disappointed.

U.S. President Joe Biden is disappointed by OPEC+’s decision to cut production quotas, according to a White House statement from National Security Advisor Jake Sullivan and NEC Director Brian Deese.

“At a time when maintaining a global supply of energy is of paramount importance, this decision will have the most negative impact on lower- and middle-income countries that are already reeling from elevated energy prices,” Sullivan and Deese said in the statement.

“At the President’s direction, the Department of Energy will deliver another 10 million barrels from the Strategic Petroleum Reserve to the market next month, continuing the historic releases the President ordered in March,” Sullivan and Deese added.

“The President will continue to direct SPR releases as appropriate to protect American consumers and promote energy security, and he is directing the Secretary of Energy to explore any additional responsible actions to continue increasing domestic production in the immediate term,” they continued.

Sullivan and Deese went on to note that Biden is also calling on U.S. energy companies “to keep bringing pump prices down by closing the historically large gap between wholesale and retail gas prices — so that American consumers are paying less at the pump”.

They added that the Biden Administration will also consult with Congress “on additional tools and authorities to reduce OPEC’s control over energy prices”.

When asked in a press gaggle if the Biden administration actively tried to avoid the OPEC+ outcome and talk to the group’s members to avoid the cutdown in production, Press Secretary Karine Jean-Pierre responded with the following.

“We’re always in touch with partners, both producers and consumers. Look, it’s no secret that the President believes that energy supply should meet energy demand and that it is important for the global economy as it faces global challenges. But, again, it is — it should be no surprise that we are in regular touch with our partners”.

At the 33rd OPEC and non-OPEC Ministerial Meeting, which took place in person at the OPEC Secretariat in Vienna, Austria, on October 5, the group decided to adjust overall production downward by two million barrels per day from the August 2022 required production levels. The new production limit will start in November 2022, OPEC revealed on its website.

USA Industry Group Reaction

Following news of OPEC+’s output decrease, American Petroleum Institute (API) President and CEO Mike Sommers said, “the solution to meeting demand for affordable, reliable energy is right here in the United States”.

“We face a growing energy crisis driven by geopolitical instability and U.S. policymakers should be doing everything in their power to produce more energy here in America,” Sommers added.

Ed Longanecker, the resident of the Texas Independent Producers and Royalty Owners Association (TIPRO), said, “OPEC’s oil output cuts make clear once again why it is so important for the U.S. to encourage domestic oil and gas production and to continue exporting our resources into the global market”.

“Without Texas oil, the impact of OPEC’s cuts would be far greater on prices, U.S. consumers and the current energy crisis facing our allies abroad,” Longanecker added.

American Exploration and Production Council (AXPC) CEO Anne Bradbury said, “OPEC’s decision to cut production is not good news for American families and businesses, which are already struggling with record high inflation, and it reinforces the need for American energy in the world”.

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

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