US Energy Secretary: "Record Oil Production to Begin Next Year" ... Plan for All-Time High Output

"Producing 12.7 Million Barrels per Day" Record High
Contradicts Eco-Friendly Policy Promises... Faces Domestic and International Criticism

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Jennifer Granholm, U.S. Secretary of Energy, announced that starting next year, the United States will ramp up oil production to a record high of 12.7 million barrels per day. This move is interpreted as a measure to stabilize soaring oil prices that have been prolonged since Russia's invasion of Ukraine, and to address inflation issues both in the U.S. and globally. However, this oil production increase policy, which contrasts with the Biden administration's key green energy commitments, is expected to spark significant domestic and international controversy.

On the 21st (local time), Secretary Granholm appeared on Fox News and stated, "Starting next year, the U.S. will embark on record-breaking crude oil production," adding, "We plan to produce about 12.7 million barrels of oil per day." If realized, this would mark the largest production scale in U.S. history. Previously, the highest domestic oil production record was 12.2 million barrels per day, set in 2019.

Secretary Granholm emphasized, "Since Russia invaded Ukraine, millions of barrels have been removed from the international oil market," and added, "Because oil is traded globally, the lost volume must be compensated." With the midterm elections in November approaching and inflation issues caused by soaring gasoline and essential goods prices becoming a major concern, the U.S. government is interpreted to be actively increasing oil production.

Last year, the average gasoline price at U.S. gas stations hovered around $1 to $2 per gallon, but this year it has exceeded $5, and despite a recent decline due to recession concerns, it still remains around an average of $3.90. As rising oil prices have pushed up the prices of groceries and other essential goods, public dissatisfaction has grown significantly, prompting the Biden administration to actively stabilize oil prices.

Earlier, the Biden administration announced in March that it would release a total of 180 million barrels of Strategic Petroleum Reserves (SPR) over six months at a rate of 1 million barrels per day, and an additional 20 million barrels are expected to be released into the international oil market starting from September to October.

However, since this measure directly contradicts the Biden administration's environmental initiatives such as the Climate Change Response Act, it is causing considerable domestic and international controversy. The New York Times (NYT) pointed out, "Environmental regulations such as allowing additional oil drilling in the U.S. to increase oil production will be relaxed, making it difficult for the Biden administration to achieve its goal of carbon neutrality by 2050," and warned, "Opposition from environmental groups and the scientific community is expected."

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