API Slams Biden’s SOTU Promise to Lower Energy Costs While Throttling Domestic Oil Production: ‘Unacceptable,’ Not What Americans Want

US Oil Production
Jae C. Hong/Associated Press

An official with the American Petroleum Institute (API) told reporters on a call on Thursday that President Joe Biden’s claim that he is doing all he can to lower energy cost rings hollow given that he has done everything he can to shut down domestic oil production.

“Let’s put this in the context,” Frank Macchiarola, senior vice president of policy economics and regulatory affairs at API, said on the call. “If you said that you wanted to lower prices. That people are paying too much for food. And then you turn around and restrict access to farming, cut off infrastructure, and propose tax increases on the agriculture industry domestically…”

“That would harm competitiveness with foreign agriculture,” Macchiarola said. “You would say that that administration is not serious about reducing the price of food.”

“They are sending a signal now that the United States policy is to be closed for business as it applies for oil and natural gas,” Macchiarola said. “That is unacceptable.”

“It’s not what the American people want,” Macchiarola said. “It’s not what bipartisan policymakers on Capitol Hill want. And it’s not good for the interests of the American people.”

A reporter asked him what actions are hurting domestic production.

“If you restrict access and cancel infrastructure, and impose additional costs, regulatory burdens, and tax increases, No. 1, you’re harming the investment atmosphere,” Macchiarola said.

“And you’re setting up the United States for a long term decline in our energy leadership,” he said.

During the call Macchiarola also said that despite Biden’s efforts, data from the Energy Information Administration (EIA) shows that demand for oil is high and production is still increasing.

“EIA estimates 12 million barrels per day production in 2022,” Macchiarola said. “This would be a million barrels greater than January 2020, 2021. And they’re estimating record high production in 2023.”

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