As the AAA national average for gas sits at $4.84 per gallon heading into the July 4th weekend, one American oil executive is asking the Biden administration to tap into the full potential of the Permian Basin.
The Permian Basin is the most prolific in the United States, according to American Petroleum Institute Senior Vice President Frank Macchiarola, who spoke to Mornings with Maria Friday. It's been the backbone of the energy revolution here. Macchiarola expressed hope that the Environmental Protection Agency's plan to impose a discretionary redesign of the Permian Basin, which is located in Texas and New Mexico and accounts for 40% of all oil produced in the U.S. falls through.
The oil executive told FOX Business's Dagen McDowell that the administration should promote American oil and gas development.
In response to Biden's moratorium on federal land and offshore drilling, the American Petroleum Institute introduced a plan to promote and restore U.S. energy independence.
Macchiarola explained that that breaks down the barriers for infrastructure that lifts steel tariffs, that promotes LNG exports, and that it also helps with the lifting of steel tariffs. These are the types of steps that the administration should be taking, not trying to put limitations on the most prolific basin that we have here in the United States. The Permian Basin, which pumpes 5.2 million barrels per day, or 95 million gallons of gas, is credited with pushing the U.S. to become the leading producer of oil and natural gas, according to Macchiarola.
The oil executive pointed out that it didn't happen by accident, and we need policies in place from this administration that continues that progress. Macchiarola remained unsure of how high gas prices would go and how costly travel could become.
It's hard to project prices, but the fundamentals are critical here. He noted that supplies have not kept pace due to the demand coming out of COVID. There are additional supplies that we need to get into the marketplace. We think policies can help.