U.S. Energy Secretary Granholm Calls on Oil and Gas Companies to Raise Output

With oil prices recently hitting the highest level since 2008, U.S Energy Secretary Jennifer Granholm took to the stage in front of a room full of energy executives with a simple message: raise output

“We are in an emergency, and we have to responsibly increase short-term supply where we can right now to stabilize the market and minimize harm to American families,” she said Wednesday at CERAWeek by S&P Global.

The U.S. has tapped the Strategic Petroleum Reserve twice in recent months — last week and in November — and Granholm said a third release is not off the table.

But she also called on the private sector — and Wall Street — to play a role at this pivotal time.

“I hope your investors are saying these words to you as well: In this moment of crisis, we need more supply … right now, we need oil and gas production to rise to meet current demand,” she said.

Oil and gas companies have fundamentally shifted their business models in the wake of the pandemic. While once it was about growth at all costs, capital discipline now reigns supreme. Companies are paying down debt, announcing share buybacks and hiking dividends. Along with those measures, they’ve pledged to keep a supply in check.

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Source: CNBC

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