Treasury Secretary Janet Yellen on Wednesday addressed the record-high oil prices.
CNBC “Squawk Box” co-host Becky Quick asked Yellen if there was any consideration to reverse the decision to cancel the Keystone XL pipeline to ease the cost at the pump for Americans.
President Joe Biden signed an executive order on his first day in office to put an end to the construction of the pipeline.
Yellen advised that the “Keystone Pipeline would take years to come online” and would not help solve the problem. She added that “oil prices are set in global markets, not based on domestic production.”
“You know, the oil companies are sitting on lots of leases that they have not drilled,” Yellen explained. “And the prices that prevail right now in the oil markets provide ample incentive for firms to boost production. The strategic petroleum releases are very substantial, and I see as filling in the market while waiting for oil producers to ramp up production.”
She continued, “The Keystone Pipeline would take years to come online and really is about moving oil rather than producing more oil. And remember, oil prices are set in global markets, not based on domestic production.”
Follow Trent Baker on Twitter @MagnifiTrent
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