"Increase Production" US Calls Emergency Meeting of Major Oil Companies

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] The Joe Biden administration in the United States is set to convene an emergency meeting with major oil companies as early as next week to curb soaring oil prices.

A spokesperson for the U.S. Department of Energy stated on the 16th (local time) that the meeting will discuss measures to increase crude oil refining capacity and production by oil companies. The exact date of the meeting has not been disclosed. However, major foreign media outlets reported, citing sources, that the meeting is expected to be held on the 23rd.

The emergency meeting was convened under President Biden's directive. Recently, President Biden sent letters to the executives of seven major oil companies, instructing Energy Secretary Jennifer Granholm to convene an emergency meeting regarding oil prices. It is not known whether President Biden will attend the meeting in person. The oil companies that received the letter include Valero Energy and ExxonMobil.

This meeting is particularly notable as it is convened amid the prolonged Russian invasion of Ukraine and soaring oil prices. On this day, the July West Texas Intermediate (WTI) crude oil price on the New York Mercantile Exchange closed at $117.58 per barrel, up $2.27 (1.97%) from the previous session. The average gasoline price in the U.S. surpassed $5 per gallon (approximately 6,400 KRW).

So far, the Biden administration has openly criticized major oil companies for making huge profits from soaring oil prices. In an interview with the Associated Press released on the same day, President Biden reiterated that oil companies are benefiting from price increases without increasing production amid inflation concerns. He emphasized, "Do not reward yourselves alone."

A Department of Energy spokesperson said, "As mentioned in the President's letter, the President is prepared to use all reasonable means and authorities to increase refining capacity and production and lower oil prices."

There were also reports that the Biden administration is considering restricting fuel exports to curb soaring oil prices. Bloomberg News reported on the same day, citing sources, that discussions are underway regarding limiting exports of gasoline and diesel produced in the U.S. However, U.S. oil companies oppose government controls on energy exports.

This content was produced with the assistance of AI translation services.