U.S. on pace for record oil production despite Biden’s green agenda frustrating the energy industry

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Domestic oil production is forecasted to reach an all-time high by the end of this year, even as President Biden’s climate change agenda seeks to blunt fossil fuel output and consumption.

While presidents largely lack control over short-term oil supply and costs at the pump, industry analysts say Mr. Biden has done long-term damage to production with regulatory uncertainty from “mixed signals” between his green energy policies and calls for more oil to blunt high gasoline prices.

Despite anti-oil policies that Republicans blame for inflating gasoline prices, the U.S. is expected to break pre-pandemic oil records by producing an average of 12.8 million barrels per day this year and 13.1 million in 2024, according to the U.S. Energy Information Administration. Mr. Biden and his top officials have prodded Big Oil to produce more to lower prices while at the same time promoting restrictive policies.

Recent elevated gasoline costs have been caused by higher crude oil prices, increased global demand, production cuts in the Middle East and heat waves limiting domestic refining capacity. Global oil demand in August was at 101.4 million barrels per day, slightly outpacing supply at 100.8 million barrels, according to the EIA.

 

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