US Urges Oil Companies to Increase Production

TO STOP HIGH PRICES RESULTING FROM INVASION OF UKRAINE

El Comercio de Colorado Newsroom

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The US Secretary of Energy, Jennifer Granholm, urged US oil companies to increase the supply of crude oil in the face of the emergency caused by the Russian invasion of Ukraine. At the annual CERAWeek energy conference in Houston, Texas, Granholm stressed that the impact of high oil prices is “real and serious.”

“In this time of crisis, we need more supplies. And that means you produce more right now,” Granholm frankly expressed. She warned that Russian President Vladimir Putin is “cornered” by sanctions and “can do anything.” “We are in a war situation. This is an emergency,” stressed the senior official.

Granholm showed the willingness of the government of US President Joe Biden to collaborate with the private sector. The energy secretary pointed out that production can be increased “in the short term” while working towards a transition to clean energy.

Reducing High Prices

The White House admitted that the war in Ukraine has caused an increase of 0.75 dollars in gasoline per gallon (3.78 liters) for Americans. The rise in prices forced the government to maintain contacts with producing countries to increase supply. The US has spoken with Saudi Arabia, Venezuela, and Iran, countries with which it has tense relations.

Since Russia began its invasion of Ukraine almost two weeks ago and following harsh sanctions by Western countries on its economy and financial system, fuel prices have soared on fears of global supply shortages. The US and UK announced a veto on oil imports from Russia.

The barrel of reference in the country, the Texas (WTI), shows great volatility, reaching a peak of 130 dollars. That price was recorded on Sunday, March 6, and is a figure not seen since the summer of 2008. However, a decrease in the price has since been observed. In the second week of March, the average price was 112 dollars.