In the wake of soaring energy prices and as global energy demand continues to rebound, a leading industry trade group has called on US President Joe Biden to ease restrictions on fossil fuel development.
The American Petroleum Institute (API) unveiled its 10-point policy planon Tuesday that it said US lawmakers should use to unlock American energy and fuel economic recovery.
“As energy costs and geopolitical instability around the world continue to rise, API is calling on policymakers to confront the global mismatch between energy demand and available supply that has driven higher fuel prices by supporting greater US production and infrastructure,” the API said.
Oil prices have surged by more than 70% since late last year as global demand continues to recover from the Covid-19 pandemic and the continued disruption of oil flow from Russia due to sanctions brought against it by the US and Europe for its invasion of Ukraine, according to Reuters.
The surge has contributed to the record-breaking jump in US gasoline prices, with prices breaking the $5 per gallon mark over the weekend.
“This combination of factors and events leaves us in the situation we face today. Namely, the most consequential energy crisis since the 1970s,” API President Mike Sommers wrote in a letter addressed to Biden and dated Tuesday, referring to the Arab oil embargo.
“Fortunately, the United States benefits from an abundance of oil and natural gas resources and has developed cutting-edge technologies to be the world’s energy leader."
The 10-point plan includes the lifting of restrictions on federal oil and gas leases sales, accelerating liquefied natural gas exports and approve pending LNG applications, rolling back proposals for increased climate disclosure, and dismantling supply chain bottlenecks.
“These 10 in ’22 policies are a framework for new energy leadership for our nation, unleashing investment in America and creating new energy access while avoiding harmful government policies and duplicative regulation. It’s time to lead,” said Sommers.