The United States is set to have a record year for oil production in 2023, according to Biden administration experts who say they're working to resolve current supply and demand issues.
Energy Secretary Jennifer Granholm shared the news while speaking with “Fox News Sunday.” She said the U.S. will be producing 12.7 million barrels of oil daily in 2023. The current rate is less than 12 million barrels per day.
The Department of Energy had predicted oil production would hit all-time highs in 2023, Fortune reported. The previous record was 12.2 million barrels per day and was set in 2019.
“This is all about supply and demand. When Russia invaded Ukraine, that pulled millions of barrels off of the global market,” Granholm said. “Since oil is traded globally, we have to make up for that lost amount of fuel.”
With inflation the highest it’s been since the 1980s, the cost of everyday essentials has skyrocketed, and gas is no different.
In the middle of June, domestic gas prices hit $5, the highest they have ever been. However, since then, they have started to fall and currently sit at $3.90 a gallon, AAA reported.
The Energy Secretary shared that part of the reason for the drop in prices was Biden’s decision to release 1 million barrels of oil per day from the Strategic Petroleum Reserve.
“The release of a million barrels per day is the biggest tool at our disposal,” Granholm said. “That’s why the president has called for this increase in releasing an increase in production.”
Related
Related
