Irving-based ExxonMobil has responded to the Biden Administration's letter asking oil companies to increase output. Wednesday, the president sent a letter to seven companies asking them to increase production.
"The crunch that families are facing deserves immediate action. Your companies need to work with my Administration to bring forward concrete, near-term solutions that address the crisis," Joe Biden wrote in the letter.
ExxonMobil has now responded, saying the company has been in "regular contact" with the Biden Administration. The company sent a statement saying it was updating the administration on "how ExxonMobil has been investing more than any other company to develop U.S. oil and gas supplies."
ExxonMobil says it has invested $118 billion the past five years worldwide on new oil and gas supplies. The company says $50 billion has been spent in the United States, leading to a 50% increase in oil production.
"This is a reflection of the company’s long-term growth strategy, and our commitment to continuously invest to meet society’s demand for our products," ExxonMobil wrote.
Biden's letter says companies' profits are "currently at their highest levels ever recorded."
ExxonMobil says it lost $20 billion during the pandemic and "had to borrow more than $30 billion to maintain investment to increase capacity to be ready for post-pandemic demand." The company says it increased domestic output by 250,000 barrels a day.
"In the short term, the U.S. government could enact measures often used in emergencies following hurricanes or other supply disruptions -- such as waivers of Jones Act provisions and some fuel specifications to increase supplies. Longer term, government can promote investment through clear and consistent policy that supports U.S. resource development, such as regular and predictable lease sales, as well as streamlined regulatory approval and support for infrastructure such as pipelines," the company says.
ExxonMobil is currently based in Irving but announced in February it would move its headquarters to the Houston area in 2023, expanding an existing campus in Spring.
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Bloomberg / Contributor