Remarks by President Biden Throughout Financial Briefing on Decreasing Fuel Costs

South Courtroom AuditoriumEisenhower Government Workplace Constructing 3:18 P.M. EDT MR. DEESE:  Hey, Mr. President, it’s

South Courtroom Auditorium
Eisenhower Government Workplace Constructing

3:18 P.M. EDT

MR. DEESE:  Hey, Mr. President, it’s nice to see you.

THE PRESIDENT:  Hey.  The way you doing? 

MR. DEESE:  Good.  We’ve received members of your financial and vitality workforce right here.  And we’re ready to begin the briefing, however we’ll begin by turning the ground over to you, sir.

THE PRESIDENT:  Effectively, thanks.  Let me begin by apologizing — my voice.  I’m feeling a lot better than I sound. 

, we’re assembly as we speak on fuel costs, and we have now some actually excellent news: Fuel costs are coming down. 

In truth, fuel costs have fallen day-after-day this summer season for 38 days in a row.  Now, you recognize, you’ll be able to — you’ll find fuel for $3.99 or much less in additional than 30,000 fuel stations in additional than 35 states.  In some cities, it’s down nearly a greenback from final month.  We’ve been working actually onerous to deliver the worth down.

4 months in the past, I gave an order to launch 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 most important launch of oil reserves in historical past, together with from different nations.  In complete, greater than 240 million barrels to spice up international provide. 

Throughout that point, I’ve additionally been working to extend U.S. manufacturing.  In the present day, we’re producing 12 million barrels per day, and we’re on monitor to hit near-record highs.  I’ve been working to guarantee that when the worth of oil comes down, the worth on the pump comes down as nicely, and comes down in actual time.  The excellent news is that’s taking place, nevertheless it’s not taking place quick sufficient.  We’ve made progress, however costs are nonetheless too excessive. 

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And so, right here’s what I’m going to do — discuss as we speak with all of you.  We have to work on this. 

First, we’re going to take a look at methods to extend oil manufacturing from the prevailing wells and permits that exist as we speak.  The business has extra authorized permits for manufacturing on federal lands than they will probably use.  That’s a truth.  Let me say it once more: They’ve greater than they will use. 

So my message to those corporations is: Use the permits or lose them.  Don’t say we will’t — you don’t have entry.

Second, I’m telling the business, “You’re making document earnings as a consequence of Putin’s battle in Ukraine.  Use these earnings to extend manufacturing and refining.  Don’t use these earnings to purchase again your shares and dividends.” 

Look, thirdly, we’ll discuss a world value cap on Russian oil — that I received our companions to conform to final month on the G7 — that can preserve provide up and Putin’s revenues down.  Within the days and weeks forward, I’m going to maintain doing what I can to deliver down the worth of fuel on the pump. 

However the true reply is to get to a clear vitality financial system as quickly as attainable; flip this into one thing optimistic.  Which means cleaner renewable vitality, extra inexpensive electrical autos, and clear vitality manufactured right here in the USA.  That’s how we’ll defend the local weather and create jobs. 

I’m — nicely, I’ll have extra to say about this in our discussions and extra within the coming days.  However look, I wish to cease right here and switch it over to you, Brian.  And let’s get this briefing began. 

Thanks.

MR. DEESE:  Nice.  Thanks, Mr. President. 

So, we had been hoping as we speak to cowl three broad areas. 

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The primary is market developments, each the place we’re and we thi- — we’re headed.  And I’ll flip in a second to Chair Rouse on that entrance. 

The second is developments within the business and the work that your workforce has been doing, at your route, to have interaction with the business on refining, on hurricane preparedness, and different points that Secretary Granholm will replace and temporary you on. 

And the third, as you talked about, is on worldwide developments, the place, on — on the again of your securing an settlement to discover the worth cap popping out of the G7, Secretary Yellen is again from a multi-country journey throughout Asia, and he or she and Amos gives you an replace on worldwide developments as nicely.

So along with your permission, sir, we’ll now flip it — I’ll flip it over to Chair Rouse to speak about market developments.

THE PRESIDENT:  Thanks.  Certain.  Cece, I’m anxious to listen to you.

CHAIR ROUSE:  Terrific.  So, Mr. President, as you talked about on the high, Individuals are getting some very a lot badly wanted respiration room on the pump.  The nationwide common retail fuel value as we speak fell to $4.41.  That’s about 60 cents decrease than its mid-June peak.

Whereas this can be a nationwide common, it’s affected by the historically greater costs in western states.  What you see if you look underneath these information is that greater than thir- — in additional than 30,000 stations, they’re now promoting fuel for lower than $4.00 a gallon.  In truth, the commonest fuel station value in America as we speak is $3.99 a gallon.

This sort of decline at the moment of 12 months is sort of distinctive.  That is the thirty eighth day in a row of declining retail fuel costs.  In truth, the speed of decline is among the many quickest in over a decade, a dramatic decline in the course of the peak summer season driving season.  In different phrases, it has been a development, not a every day blip.

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The decline interprets into concrete financial savings for American households.  The everyday two-driver household is saving greater than $60 a month.  Economic system extensive, that might imply Individuals will spend about $6.5 billion much less in a month over the approaching month, and that might be actual financial savings.

Trying ahead, we anticipate fuel costs to say no additional.  Nonetheless, as you famous, they’re nonetheless too excessive.  Refiner margins stay roughly double what’s typical for this time of 12 months, although they’ve declined from their document highs.  Retailer margins are very elevated and are round 50 cents above what’s typical. 

What which means is we anticipate fuel costs on the pump to proceed to return down.  If the historic relationship between oil and fuel costs had been to carry, these decrease oil costs might translate into a further 40-cent decline in fuel costs if business passes alongside price financial savings to shoppers.  This is able to deliver the nationwide common retail value to round $4.00. 

After all, vitality markets stay extremely unstable, and that’s very true within the present surroundings with the extra disruption created by Putin’s invasion of Ukraine.

So oil costs might rise once more.  And it is extremely troublesome to reliably predict the place these costs will probably be over the long run. 

Thanks, Brian.  Thanks.

MR. DEESE:  Thanks, Cece.  We’re going to — I’m going to show it over to Secretary Granholm, however earlier than we do, we’re going to ask the press to depart.

Q    Sir, how do you are feeling?  Are you feeling higher?

THE PRESIDENT:  (Provides a thumbs up.)

3:24 P.M. EDT