US Oil Producers Told to Boost Output Amid Iran War-Driven Supply Shock
US oil producers received an urgent plea from Trump administration officials to boost output amid a global supply shock caused by the war in Iran. The effective closure of the Strait of Hormuz has yanked an estimated 16 million barrels per day of crude from the world market, sending oil and gasoline prices soaring.
The call for increased production was made during a videoconference between Interior Secretary Doug Burgum, Energy Secretary Chris Wright, and roughly a dozen oil executives. The industry leaders emphasized the importance of permitting reform to boost output in the short term. They also recommended easing restrictions on flaring natural gas from wells as a way to increase oil production.
While some executives volunteered that they were boosting production, others have been reticent to spend the current windfall on drilling new wells due to expectations of a steep decline in prices over the coming months.