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Approving Keystone pipeline won’t lower oil prices, says NEC Director Brian Deese

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President Joe BidenThe White House’s economic chief suggested that Friday, the White House will not reconsider its decision to cancel Keystone XL due to rising crude oil and gasoline prices.

Brian Deese (Director of National Economic Council) told CNBC that the Biden administration is concentrating instead on policies and strategies to deliver low fuel prices as quickly as possible. Biden’s decision on Thursday was highlighted by him. begin releasing 1 million barrels of oil per dayOver the next six-months, from the Strategic Petroleum Reserve

Deese stated in an interview that Keystone action would not increase oil supply and could transmit oil for years into the future. “Squawk on the Street” interview.

“What we need to be focusing on is right now and there are wells which are closed and can be brought online in the coming months. “What we have to do right now is address immediate supply disruption,” he said.

Russia-Ukraine war caused a shock in global oil markets. Previously, they were tight as the demand for Covid pandemic products recovered. The gasoline pump prices have fallen as crude oil prices reached new record highs.

Russia, an energy exporter of major importance, was hit by a series of sanctions, after invading Ukraine. There are many ways to help the environment. U.S. banned Russian oil importsIn an effort to punish Moscow and the U.K. also is phasing them out.

The oil price has fallen from its March peak when it was at its highest since 2008. However, the prices of oil are still up significantly for the year which adds to inflationary pressures. West Texas Intermediate crudeThe U.S. benchmark for oil traded at $100 per barrel last Friday. That’s up 35% in 2022. Brent crudeThe international benchmark was $104/barrel.

Unoccupied supply depot for the KeystoneXL crude oil pipeline is located in Oyen (Alberta, Canada) February 1, 2021.

Reuters| Reuters

In recent weeks, oil prices have increased dramatically. some RepublicansWe have asked Biden for an immediate reversal of course. He should immediately issue the permits to construct Keystone XL. This 1,200-mile project would’ve brought oil from Canada to American refineries.

On his first day of office, Biden cancelled the permit required to build the pipeline. It was sold to the owner company in June 2021. TC EnergyOfficially nixedThe oil pipeline is estimated to cost $9 billion. Although it was originally proposed back in 2008, the project has been delayed numerous times by legal issues from Native American tribes and environmentalists.

Deese indicated that in addition to taping the country’s oil resources, the Biden administration also wants to produce more from nearly 9,000 permits for drilling on federal land. Deese explained that that is why Biden asked Congress to impose fees on businesses that don’t use the wells of their leases on public acreage.

Deese explained that the wells that have the potential to be reconnected are what will provide those millions of barrels per day for the near term. There won’t be any long-term debates over them. But the longer-term issues cloud the priority of what’s the immediate. Our goal is to stay focused.

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