Page 5 - NorthAmOil Week 24 2022

NorthAmOil COMMENTARY NorthAmOil

and gas companies. His time in office so far has helping to advance US strategic objectives.
been characterised by moratoria on federal leas- ExxonMobil, for its part, said it had been
ing that were only lifted as the result of a court “investing more than any other company” to
ruling and by efforts to bring in more robust develop US oil and gas supplies. The company
regulations. said it had invested more than $50bn in the US
Biden’s commitment to the energy transition over the past five years, resulting in an almost
means that he wants to move the US away from 50% increase in its domestic oil output over the
oil and gas production over the long term. At period.
the same time, though, he has called for both This includes investing into increasing refin-
producers and refiners to ramp up output in ing capacity to process US light crude by about
the immediate term, and this has frustrated the 250,000 barrels per day (bpd) during the down-
industry. turn that came about with the onset of the coro-
“We understand the significant concerns navirus (COVID-19) pandemic. These
around higher fuel prices currently faced by ExxonMobil also made a few suggestions for
consumers around the country, and the world. what the Biden administration could be doing developments
We share these concerns, and expect the admin- to help with the current challenges. set the stage for
istration’s approach to energy policy will start “In the short term, the US government could
to better reflect the importance of addressing enact measures often used in emergencies fol- potential standoff
them,” Chevron said in response to Biden’s let- lowing hurricanes or other supply disruptions
ter. It added that since Biden had taken office, – such as waivers of Jones Act provisions and between the US
his administration had indicated it would some fuel specifications to increase supplies,” it
“impose obstacles to our industry delivering said. “Longer term, government can promote government and
energy resources the world needs”. investment through clear and consistent policy the industry.
Chevron also noted this week that it had that supports US resource development, such
raised its 2022 production forecast for the Per- as regular and predictable lease sales, as well as
mian Basin by 15%, to 700,000-750,000 barrels streamlined regulatory approval and support for
of oil equivalent per day (boepd). In a bid to stay infrastructure such as pipelines.”
within its capital expenditure guidance for the The other refiners that Biden has written to
year, it will do this by bringing more of its drilled are likely to take a similar view, that more pol-
but uncompleted (DUC) wells online. icy support could help promote investment in
“Chevron is doing its part to grow domes- the necessary production and refining capac-
tic supply with US oil and gas produc- ity. More calls from the industry for a support-
tion,” stated Chevron’s CEO, Mike Wirth. ive energy policy would not be surprising at
The super-major described the increase as this point.™

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