U.S. Oil Executives Meet With Biden Officials as Crude Soars

image

(Bloomberg) — Oil industry executives are meeting with U.S. officials this week as surging energy prices and mounting national security concerns bring together two groups that have had a distant relationship since President Joe Biden’s inauguration.

Department of Energy officials including Secretary Jennifer Granholm will meet with representatives from Exxon Mobil Corp., Shell Plc and some shale producers on the sidelines of the CERAWeek by S&P Global conference in Houston, according to people familiar with the matter, who asked not to be named because the meetings are private.

Crude prices surged to more than $130 a barrel Tuesday, the highest since 2008, after the U.S. and the U.K. said they will ban Russian oil imports, choking off yet more dollars from President Vladimir Putin as he continues with his invasion of Ukraine.

The U.S. is one of the few countries that can help replace Russian energy exports over the medium term. But executives have routinely complained about little or no dialogue with the Biden administration. The industry argues that it needs a more supportive energy policy and rhetoric from the administration if it is to commit the large sums of money required to grow production.

Exxon and the Department of Energy didn’t immediately respond to requests for comment. A Shell representative declined to comment.

American oil and gas companies have everything they need to ramp up near-term production, a White House official said. Oil and gas demand is increasing as the world emerges from the pandemic and producers should keep up with demand in the near term, the official added.

The U.S. could double its rate of oil production over the next 18 months but “it’s going to take cooperation with Biden, it’s going to take co-operation with our shareholders,” said Scott Sheffield, Chief Executive Officer of Pioneer Natural Resources Co., the biggest oil producer in the Permian Basin. He declined to comment on the existence of, or any involvement in, talks with government officials.

“I’ve been told his mindset is changing,” Sheffield said, referring to Biden.

Mike Sommers, the CEO of the American Petroleum Institute, the largest energy lobbying group, said Tuesday the best thing the White House could do now would be to hold a meeting with industry leaders.

In another sign that relations between the industry and government are beginning to thaw, the White House held a call with industry representatives prior to Biden’s order restricting Russian oil imports Tuesday. The call gave an overview of the sanctions, according to people familiar with the matter. It wasn’t an opportunity for meaningful dialogue, one of the people said.

While any significant acceleration of U.S. production growth would take at least a year, executives say that more accommodative policy needs to start now. Their list of requests include restarting federal lease sales, approving liquefied natural gas permits and supporting new pipelines.

Biden said Tuesday his administration isn’t holding back production. He cited the 9,000 approved but unused drilling permits on federal land held by oil companies. “They are not using them for production now,” he said. “That’s their decision.”

The administration is also considering moves that would enable more oil to flow from Iran and Venezuela. But rocketing gasoline prices across the U.S crisis may force him to move more quickly.

John Kerry, Biden’s climate envoy, opened the CERAWeek conference on Monday by saying oil and gas industry companies “must be at the table” when mapping out the energy transition, a statement that was well received by the industry. He also said gas would play a key role in a low-carbon world.

The U.S. Department of Energy hosted a small dinner Monday night to discuss the energy transition and security with executives from gas utilities, steel companies, transportation and oil and gas more broadly, said Yuri Freedman, senior director of business development at Sempra’s Southern California Gas utility, who attended. The National Security Council was part of the discussions as well, demonstrating the priority being placed on security, he noted.

Freedman said the DOE officials included Deputy Secretary David Turk; Jigar Shah, director of the loan programs office; and Vanessa Chan, chief commercialization officer and director of technology transitions.

©2022 Bloomberg L.P.

Trending Ideas

Featured Stocks On The Move

Daily Rundown

Top 3 Stocks in Leading Sectors
  • 3 Electric Power Stocks To Buy Now

    Featured Content Hawaiian Electric Industries, Inc. (HE) Hawaiian Electric Industries, Inc. is a holding company that provides electric utility services and financial services in Hawaii. Through its subsidiaries, it supplies... Read More

  • 3 Bank Stocks To Buy Now

    Featured Content Comerica Incorporated (CMA) Comerica Incorporated is a financial services company headquartered in Dallas, Texas, offering a range of banking products and services, including commercial and retail banking, wealth... Read More

  • 3 Machinery Stocks To Buy Now

    Featured Content Alta Equipment Group Inc. (ALTG) Alta Equipment Group Inc. is an integrated equipment dealership platform in the United States, operating through three segments: Material Handling, Construction Equipment, and... Read More

  • 3 Silver Stocks To Buy Now

    Featured Content Gatos Silver, Inc. (GATO) Gatos Silver, Inc. is a precious metals mining company primarily focused on silver and zinc production. Its flagship Cerro Los Gatos mine in Mexico... Read More

  • 3 Metal Production Stocks To Buy Now

    Featured Content Century Aluminum Company (CENX) Century Aluminum Company is a primary aluminum producer, with operations that include the production of high-purity, low-carbon aluminum used in automotive, aerospace, and industrial... Read More

  • 3 Medical Drug Stocks To Buy Now

    Featured Content Teva Pharmaceutical Industries Limited (TEVA) Teva Pharmaceutical Industries Limited is a global pharmaceutical company specializing in generic and specialty medicines. The company provides a wide range of treatments... Read More

  • 3 Paper Product Stocks To Buy Now

    Featured Content AptarGroup Inc. (ATR) AptarGroup Inc. is a global leader in providing innovative dispensing and packaging solutions, serving diverse industries like beauty, personal care, and pharmaceuticals. They focus on... Read More

  • 3 Restaurant Stocks To Buy Now

    Featured Content Brinker International, Inc. (EAT) Brinker International, Inc. operates well-known restaurant brands such as Chili’s Grill & Bar and Maggiano’s Little Italy. The company is a leader in the... Read More

  • 3 Investment Brokerage Stocks To Buy Now

    Featured Content Robinhood Markets, Inc. (HOOD) Robinhood Markets, Inc. is a financial services company known for its commission-free trading platform, which allows users to trade stocks, options, cryptocurrencies, and ETFs.... Read More

  • 3 Shipping Stocks To Buy Now

    Featured Content ZIM Integrated Shipping Services Ltd. (ZIM) ZIM Integrated Shipping Services Ltd. is a global container shipping company that provides cargo transportation services worldwide. The company operates a modern... Read More

  • 3 Mining Stocks To Buy Now

    Featured Content Perpetua Resources Corp. (PPTA) Perpetua Resources Corp. is a mining company focused on the exploration and redevelopment of the Stibnite Gold Project in Idaho, which is one of... Read More

  • 3 Airline Stocks To Buy Now

    Featured Content General Electric Company (GE) General Electric Company is a global industrial conglomerate with operations spanning sectors such as aviation, healthcare, power, and renewable energy. GE is known for... Read More