Photo: Chevron on YouTube
Summer is about to end. School begins soon. Winter is coming. It's only natural for the current administration to want to keep fuel prices under control. With this goal in mind, U.S. Secretary of Energy Jennifer Granholm addressed the country’s top refiners directly via a letter. She told them to keep exports at the current levels. Here’s what may happen if they don’t comply.
Americans are set to return to their normal schedule with millions of families preparing to send their kids and young adults to school. Roads will most likely get busier once again, as people will travel mostly by car to do their jobs, run businesses, or help friends and loved ones. Vacation time is over for almost everybody.
Wanting to avoid another scenario in which demand outgrows the gas and diesel output, the Biden administration is taking some necessary steps to make sure the country has enough reserves. This plan includes private actors as well.
Energy Secretary Jennifer Granholm told the country’s top seven refiners in a letter read by Reuters that they should start filling domestic reservoirs. If not, some action might have to be taken by the White House. The message says “federal requirements or other emergency measures” could become reality sooner rather than later.
Companies like ExxonMobil and Chevron will have to start building inventories before exporting more gas and diesel to other neighboring countries or the EU. Moreover, the current administration is worried about the hurricane season. Agencies might need help to tackle whatever events might happen. For example, in case electricity runs out, diesel generators will be needed.
Similarly, the country’s leaders want to keep inflation under control. Keeping fuel costs as low as possible will help with tackling this economic phenomenon.
State officials are also keeping in touch with the White House. Most of those on the East Coast keep buying gas and diesel because they’re cheaper in this part of the U.S.
Initially, the U.S. Secretary of Energy wanted to temporarily ban exports but has since given up on the plan.
At the time of writing, the national average gas price is $3.8 per gallon.
Wanting to avoid another scenario in which demand outgrows the gas and diesel output, the Biden administration is taking some necessary steps to make sure the country has enough reserves. This plan includes private actors as well.
Energy Secretary Jennifer Granholm told the country’s top seven refiners in a letter read by Reuters that they should start filling domestic reservoirs. If not, some action might have to be taken by the White House. The message says “federal requirements or other emergency measures” could become reality sooner rather than later.
Companies like ExxonMobil and Chevron will have to start building inventories before exporting more gas and diesel to other neighboring countries or the EU. Moreover, the current administration is worried about the hurricane season. Agencies might need help to tackle whatever events might happen. For example, in case electricity runs out, diesel generators will be needed.
Similarly, the country’s leaders want to keep inflation under control. Keeping fuel costs as low as possible will help with tackling this economic phenomenon.
State officials are also keeping in touch with the White House. Most of those on the East Coast keep buying gas and diesel because they’re cheaper in this part of the U.S.
Initially, the U.S. Secretary of Energy wanted to temporarily ban exports but has since given up on the plan.
At the time of writing, the national average gas price is $3.8 per gallon.
Google News