Consumers in the United States and the European Union are facing a nightmare scenario, according to some. Costs were already rising due to inflation, but now the United States has sanctioned Russian Oil as a result of Russia’s war in Ukraine, causing prices to climb even more. According to AAA, the potential disruption in Russia’s supply to the world market has pushed prices above $100 per barrel, forcing prices at the pump in Texas to jump by about $4 per gallon.
Domestic Oil and gas producers claim that this is their chance to shine, and that investing in and gas exploration will improve the country’s energy security. In a statement, Mike Sommers, president of the and gas trade group American Petroleum Institute, stated, “The sector has already taken significant and meaningful actions to unwind links, both with respect to assets in Russia, as well as imports of Russian crude Oil and processed products.”
Even the Biden administration, which is frequently at war with the Oil and gas industry on climate policy, has been urging producers in locations like West Texas’ Permian Basin to increase output to fill the hole. According to the Energy Information Agency, the United States used to import almost 700,000 barrels of crude and refined petroleum products from Russia per day.