NEW ORLEANS — The U.S. ban on Russian oil and natural gas comes as Americans are feeling unprecedented pain at the pump.
As of Tuesday morning, the cost of regular gas in the U.S. hit an all-time high of $4.17 a gallon according to AAA.
The previous national average high was $4.11, set in July 2008.
Russian oil makes up a small percentage of the country’s overall energy imports.
Louisiana oil and gas industry leaders say the U.S. needs to step up domestic energy production to help meet global demand.
“It allows us to avoid these spikes in oil prices which of course inevitably leads to higher gasoline prices for consumers every time there’s some large geo-political event,” Louisiana Mid-Continent Oil and Gas Association President Tommy Faucheux said.
Sen. Bill Cassidy, R-Louisiana, is urging the Biden administration to adopt an Operation Warp Speed type policy to speed up production here.
He said the plan should include a faster permitting and approval process and government incentives to help companies fast track energy production.
“Let’s increase our production, provide regulatory certainty and then start shipping the stuff not just to our local gas pump, but to our allies in Europe,” Cassidy said.
Keith Williams is a third-generation oilman with 26 wells in Louisiana and Mississippi.
He says kick starting domestic energy production is not like flipping a switch.
“There aren’t enough employees,” Williams said. “There isn’t enough steel. There aren’t enough pumping units. There aren’t enough truck drivers.”
Faucheux said it’s more important than ever to accelerate Gulf of Mexico energy production.
He urges the administration to reverse a leasing ban on federal land and waters.
“Policies that are enacted today that allow certainty for future domestic production will inevitably lead to more employment opportunities in the oil and gas sector for Louisiana,” Faucheux said.
Just two years ago, the oil and gas industry accounted for about 250,000 jobs in Louisiana.
Prices at the pump were already on the rise as the U.S. grappled with record inflation amid the coronavirus pandemic.
According to one investment research firm, the average American household spent about $3,100 on gas in 2021.
But with the recent spike they could end up paying $2,000 additional dollars on gasoline this year.
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