Abbott Says Texas Can Bring Down Oil Prices, Not OPEC

Texas Republican Governor Greg Abbott said that Texas can help reduce oil prices. However, President Joe Biden’s administration needs to “just stay out of the way” so that the US can achieve that goal. A known proponent of clean energy, Biden is keen on shifting away from fossil fuel dependency.

However, the recent appeal to OPEC+ to increase oil output to reduce prices means that the US remains heavily dependent on oil products for its industries. 

RELATED: Oil Prices Up as Trump Says OPEC+ Should Double Cuts

‘Don’t Make Us Dependent On Foreign Sources’

Abbott questioned the federal government’s preference to depend on foreign sources of oil when states like Texas have more than enough. As a result, Abbott posted a short open letter to the White House on Twitter Wednesday.

He wrote that Texas can help bring down oil prices by increasing its domestic oil production. “Texas can do this. Our producers can easily produce that oil if your Administration will just stay out of the way.” 

In telling Biden to stay out of the way, Abbott made a reference to an earlier Biden remark. The president chided Abbott and Florida governor Ron DeSantis to “stay out of the way” as the federal government works on halting the spread of COVID-19. Abbott also called on the Biden administration to allow American workers, and not OPEC, to “Don’t make us dependent on foreign sources of energy,” Abbott added.

White House Called On OPEC to Increase Production

Abbott’s tweet came after National Security Adviser Jake Sullivan called on OPEC to increase its oil output. “While OPEC+ recently agreed to production increases, these increases will not fully offset previous production cuts that OPEC+ imposed during the pandemic until well into 2022.

At a critical moment in the global recovery, this is simply not enough,” Sullivan said. “We are engaging with relevant OPEC+ members on the importance of competitive markets in setting oil prices. Competitive energy markets will ensure reliable and stable energy supplies, and OPEC+ must do more to support the recovery,” he added. 

Meanwhile, Abbott found it ironic that Biden wanted more oil when he was instrumental in limiting US output. While there are no executive orders pausing domestic drilling, Biden did make moves that put the US oil industry at a disadvantage.

This included ordering the cancellation of the Keystone XL Pipeline. He also ordered a moratorium on new oil drilling leases on all federal land and water. 

Replacing Fossil Fuel Subsidies With Clean Energy 

In addition, Biden unveiled a “Made in America” tax plan. This features the replacement of federal fossil fuel subsidies with clean energy incentives. He explained that “provisions of the tax code shift our energy production away from cleaner alternatives, undermining long-term energy independence and the fight against climate change.

Subsidized fossil fuels have also negatively impacted air and water quality in U.S. communities—especially in communities of color.”

Watch the Bloomberg Markets and Finance video reporting that the US asks OPEC+ to pump more oil:

Do you agree that if the US wants lower oil prices, it should source domestically? Also, do you think that Texas can provide all of America's oil requirements?

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