U.S. Energy Secretary Granholm calls on oil and gas companies to raise output

With oil prices recently hitting the highest level since 2008, Secretary of Energy 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 increase short-term supply where we can fix the market and minimize harm to American families.

Granholm said a further release is not off the table despite the fact that the U.S. has tapped the Strategic Petroleum Reserve twice in recent months.

She called on the private sector and Wall Street to play a role.

She said that we need more oil and gas production to meet current demand in this moment of crisis.

The business models of oil and gas companies have changed. Capital discipline reigns supreme as it was once about growth at all costs. Companies are paying down debt. They promised to keep supply in check.

The Department of Energy and the Biden Administration are willing to work with producers, Granholm said.

She said that increasing output doesn't detract from the White House's longer term clean energy goals.

According to the oil and gas industry, the White House is holding back drilling. These claims have been dismissed by officials.

The same supply chain issues that are affecting the economy are also affecting the industry. The labor market is tight and it is difficult to find raw materials like sand. Hollub said that output can't be raised on a dime. The industry did not prepare for sudden calls to raise production.

On Sunday, the price of oil reached the highest level since 2008. Two years ago, West Texas Intermediate traded below zero.

Since then, producers have scaled back, keeping supply in check. A tight market is due to years of under investment. The invasion of Ukraine by Russia sent crude surging, as demand is rising and supply is not keeping up.

The government and energy industry have worked together for over 100 years. She asked energy companies to power the transition.

It's hard to see history in the making when you're in the middle of it. She said that we are on the verge of the most important transition that human society has ever seen.