Gas prices are falling, but global events could escalate, warns energy secretary

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Energy Secretary Jennifer Granholm said Sunday that the US will produce a record amount of gasoline next year as the Biden administration continues its efforts to lower prices for Americans.

But Granholm warned that consumers could still be affected by incidents overseas.

“As you know, gasoline comes from oil,” Granholm explained.Fox News Sunday.” “Oil is traded in the global market. So we are prepared for what happens globally, if you will.”

“It’s all about supply and demand,” explained Granholm Fox News‘Trace Gallagher. “When Russia invaded Ukraine, it pulled millions of barrels from the global market. Since oil is traded globally, we have to make up for that lost fuel.”

He said the US would produce a record amount of 12.7 million barrels of oil per day by next year. The previous record was 12.2 barrels per day, according to The Hill,

Gas prices began rising in mid-2020 as the world adjusted to COVID, and went back this year after Russian President Vladimir Putin’s invasion of Ukraine as Western countries approved of Russian oil, According to the Associated Press, Russia is one of them world’s largest oil producer,

In early August, prices fell below $4 for the first time in five months on fears of a global recession, the AP reported.

Granholm said the Energy Information Administration expects gas prices to drop to an average of $3.78 by the fourth quarter of this year, from the current $3.90.

“They’ve dropped every single day of this summer,” Granholm said of gas prices. “We hope this continues.”

However, Granholm warned that with China intensifying its economic activity, prices could rise again.

China’s “zero COVID” policy means its economy – which faces varying challenges, including youth unemployment and a wealth crisis – has taken a hit, according to bloomberg,

“If China opens up significantly after COVID, there will be further pressure on demand,” Granholm said. “Higher demand pressure means upward pressure on prices. So we are seeing what happens globally. But we’re doing everything we can to try to stabilize supply and demand to keep those prices down.”

Granholm also explained how the “Inflation Reduction Act” includes incentives – DemocratsThe climate and health care legislation — signed by Biden last week — could help America become energy independent by building its own supply chain and energy ecosystem.

“The president has said that we need to make stuff in America, that we can’t rely on countries that don’t share our values ​​for batteries, for example for electric vehicles, which contain important minerals, vital materials. happens,” she said.

“He wants to re-edge manufacturing,” Granholm said. “It’s not just in electric vehicles, it’s the Inflation Reduction Act providing credit to encourage businesses to shore up again in America.”

Pressed on whether clean energy sources, including solar and wind, are reliable, Granholm argued that the Democratic bill would help America fully leverage the technology to enable that transition.

“They happen intermittently because the sun doesn’t always shine and the wind doesn’t always blow,” Granholm said. “But the battery technology that stores — that is also encouraged in this Inflation Reduction Act. The technology is there. We just need to make sure it’s implemented.”

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