Ukraine war ups pressure for US oil; industry faces hurdles

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President Joe Biden’s move last week to ban oil from Russia over its invasion of Ukraine was met with calls to boost U.S. production to help bring down soaring gasoline prices

to address high gasoline prices. The White House, too, called for more drilling and cited the war as it shelved Biden’s campaign pledge to curb drilling on public lands because of climate change.Yet political rhetoric about quickly ramping up U.S.

Federal energy reserves account for about a quarter of U.S. oil, with the remainder coming from private, tribal and state land. ”It’s going to be a slower ramp up for fields like ours,” McDermott said. “Everybody in the industry would say if we have a consistent price, then you know what you would get for an extended period of time and it’s easy to make business decisions.”In the short term, the world's looking to other sources. The United Arab Emirates said last week it would urge OPEC to consider boosting oil output, which sent oil prices tumbling.

Operators in the Permian Basin described growth as steady since last spring. By January, they topped 5 million barrels a day.

 

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