When Democratic Congressman Ro Khanna alerted the media that the White House was considering a crude oil export embargo, WTI was trading above $80 per barrel, gas prices were sky-high, and the White House was out of options. WTI is already trading below $70 per barrel, gas prices are falling across the country, and the oil export embargo is no longer an option. Energy Secretary Jennifer Granholm conveyed the message to the energy business, assuring them that the Biden administration was “not a bogeyman.”
Last week, reports surfaced that the White House was no longer considering imposing an export embargo. This came after a bipartisan group of eight House Representatives responded to Khanna’s request for an oil export embargo by urging the White House not to resort to such measures. The group went on to explain why an oil export restriction was a bad idea, claiming that cutting off the flow of U.S. crude to global markets would result in higher prices.
It implies that the administration may not have had an immediate need to mend relations with oil and gas. Granholm went on to push the oil business to pump more oil, citing the problems faced by the typical American driver. Ironically, the administration is facing pushback from its own voters as it extends an olive branch to the oil business.