Press Release
☷Remarks by President Biden During Economic Briefing on Lowering Gas Prices
White House ( By Press Release office)
Jul 23,2022
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South Court AuditoriumEisenhower Executive Office Building3:18 P . M . EDTMR . DEESE: Hey , Mr . President , it’s great to see you . THE PRESIDENT: Hey . How you doing MR . DEESE: Good . We’ve got members of your economic and energy team here . And we’re prepared to start the briefing , but we’ll start by turning the floor over to you , sir . THE PRESIDENT: Well , thanks . Let me start by apologizing — my voice . I’m feeling much better than I sound . You know , we’re meeting today on gas prices , and we have some really good news: Gas prices are coming down . In fact , gas prices have fallen every day this summer for 38 days in a row . Now , you know , you can — you can find gas for $3 . 99 or less in more than 30 , 000 gas stations in more than 35 states . In some cities , it’s down almost a dollar from last month . We’ve been working really hard to bring the price down . Four months ago , I gave an order to release 1 million barrels of oil per day — a day — for our nation — from our nation’s Strategic Petroleum Reserve . And I led the world to coordinate the largest release of oil reserves in history , including from other countries . In total , more than 240 million barrels to boost global supply . During that time , I’ve also been working to increase U . S . production . Today , we’re producing 12 million barrels per day , and we’re on track to hit near - record highs . I’ve been working to make sure that when the price of oil comes down , the price at the pump comes down as well , and comes down in real time . The good news is that’s happening , but it’s not happening fast enough . We’ve made progress , but prices are still too high . And so , here’s what I’m going to do — talk about today with all of you . We need to work on this . First , we’re going to look at ways to increase oil production from the existing wells and permits that exist today . The industry has more approved permits for production on federal lands than they can possibly use . That’s a fact . Let me say it again: They have more than they can use . So my message to these companies is: Use the permits or lose them . Don’t say we can’t — you don’t have access . Second , I’m telling the industry , “You’re making record profits due to Putin’s war in Ukraine . Use those profits to increase production and refining . Don’t use those profits to buy back your stocks and dividends . ” Look , thirdly , we’ll talk about a global price cap on Russian oil — that I got our partners to agree to last month at the G7 — that will keep supply up and Putin’s revenues down . In the days and weeks ahead , I’m going to keep doing what I can to bring down the price of gas at the pump . But the real answer is to get to a clean energy economy as soon as possible; turn this into something positive . That means cleaner renewable energy , more affordable electric vehicles , and clean energy manufactured here in the United States . That’s how we’ll protect the climate and create jobs . I am — well , I’ll have more to say about this in our discussions and more in the coming days . But look , I want to stop here and turn it over to you , Brian . And let’s get this briefing started . Thanks . MR . DEESE: Great . Thank you , Mr . President . So , we were hoping today to cover three broad areas . The first is market developments , both where we are and we thi - — we’re headed . And I’ll turn in a moment to Chair Rouse on that front . The second is developments in the industry and the work that your team has been doing , at your direction , to engage with the industry on refining , on hurricane preparedness , and other issues that Secretary Granholm will update and brief you on . And the third , as you mentioned , is on international developments , where , on — on the back of your securing an agreement to explore the price cap coming out of the G7 , Secretary Yellen is back from a multi - country trip across Asia , and she and Amos will give you an update on international developments as well . So with your permission , sir , we’ll now turn it — I’ll turn it over to Chair Rouse to talk about market developments . THE PRESIDENT: Thank you . Sure . Cece , I’m anxious to hear you . CHAIR ROUSE: Terrific . So , Mr . President , as you mentioned at the top , Americans are getting some very much badly needed breathing room at the pump . The national average retail gas price today fell to $4 . 41 . That’s about 60 cents lower than its mid - June peak . While this is a national average , it is affected by the traditionally higher prices in western states . What you see when you look under these data is that more than thir - — in more than 30 , 000 stations , they’re now selling gas for less than $4 . 00 a gallon . In fact , the most common gas station price in America today is $3 . 99 a gallon . This kind of decline at this time of year is quite unique . This is the 38th day in a row of declining retail gas prices . In fact , the rate of decline is among the fastest in over a decade , a dramatic decline during the peak summer driving season . In other words , it has been a trend , not a daily blip . The decline translates into concrete savings for American families . The typical two - driver family is saving more than $60 a month . Economy wide , that would mean Americans will spend about $6 . 5 billion less in a month over the coming month , and that would be real savings . Looking forward , we expect gas prices to decline further . However , as you noted , they are still too high . Refiner margins remain roughly double what is typical for this time of year , though they have declined from their record highs . Retailer margins are very elevated and are around 50 cents above what is typical . What that means is we expect gas prices at the pump to continue to come down . If the historical relationship between oil and gas prices were to hold , these lower oil prices could translate into an additional 40 - cent decline in gas prices if industry passes along cost savings to consumers . This would bring the national average retail price to around $4 . 00 . Of course , energy markets remain highly volatile , and that’s especially true in the current environment with the additional disruption created by Putin’s invasion of Ukraine . So oil prices could rise again . And it is very difficult to reliably predict where these prices will be over the longer term . Thank you , Brian . Thank you . MR . DEESE: Thank you , Cece . We’re going to — I’m going to turn it over to Secretary Granholm , but before we do , we’re going to ask the press to leave . Q Sir , how do you feel Are you feeling better THE PRESIDENT: ( Gives a thumbs up . ) 3:24 P . M . EDT
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