Treasury Secretary Janet Yellen said Sunday that the Biden administration’s policies are not responsible for record-high gas prices, and the only way to fix the energy crisis in the “medium term” is to move toward “renewables to tackle climate change.”
While appearing on ABC’s This Week, Yellen was asked to respond to a statement released Wednesday by the American Petroleum Institute, which said the Biden administration’s “misleading policy agenda has shifted away from Domestic oil and natural gas Inflationary pressures have compounded and added headwinds to companies’ daily efforts to meet rising energy needs while reducing emissions.”
Yellen responded by saying that historically high gas prices have nothing to do with and reflect politics Low production oil companies.
“Well, I don’t think politics are responsible for what happens in the oil market,” she said. “Actually, gas and fuel consumption is currently at lower levels than it was before the pandemic, and what has happened is that production has gone down. Refining capacity in the United States has gone down and oil production has gone down. I think producers have been partially forgotten by the strength of the recovery in the economy and they weren’t They are ready to meet the needs of the economy. The higher prices should push them to increase supplies over time.”
Yellen argued that the best way to address the energy crisis in the “medium term” was to shift the country away from fossil fuels.
“Look, as a medium-term issue, the way we can ensure reasonable energy expenditures for households is to move to renewables to tackle climate change, as a medium-term issue,” she said. “This is the way to free us from geopolitical moves in oil prices.”
Yellen added that President Biden is considering a range of options to help bring her down gas pricesIncluding the federal gas tax holiday.
“President Biden wants to do whatever he can to help consumers,” she said. “Gas prices are skyrocketing, and they’re obviously weighing on families, so he’s willing to work with Congress, and that’s an idea definitely worth considering.”
The national average for a gallon of unleaded gas hit $4.99 on Sunday after hitting an all-time high of $5 for a strong week earlier this month. Biden blamed Russian war in Ukraine The COVID-19 pandemic is fueling price hikes and record inflation, while Republicans blame exorbitant government spending and US dependence on foreign oil markets.
In her statement last week, American Petroleum Institute He called on the administration to “prioritize the release of US energy resources – which the world envy – rather than increasing dependence on foreign sources.”