White House Claims Drillers Have ‘Tools’ for ‘More’ Oil Production, While Banks Cut Drilling Funds

The White House on Thursday claimed drillers have enough “tools” to produce more oil, while banks have cut oil drilling funds.

“The president has been clear that he believes they have the tools they need… to go get more oil here in the United States,” White House press secretary Jen Psaki claimed when asked about the reduced oil production in the nation.

Evidence does not support the White House’s claims, however. Reporting from Bloomberg asserts financing fossil fuel projects costs ten percentage points more than it did before Biden’s presidency.

The increase in funding costs, and therefore reduced feasibility, has occurred because the Biden administration has successfully pressured financial institutions to reduce the international and domestic, public and private financing of American energy production on private lands.

Credit Suisse is the latest example. Since 2019, the bank has reduced lending to the industry and plans to cut future financing of the industry by half between 2020 and 2030. Reuters reported Thursday:

Switzerland’s second-biggest bank reduced its exposure to emissions it financed in the oil, gas and coal sector by 41% between 2020 and 2021, preliminary estimates in its sustainability report showed on Thursday, when it had some $2.6 billion in loans outstanding to such clients.

The report marks the first time the bank detailed its exposure to financing emissions from the fossil fuel sector, which it estimated at 21.9 tonnes of CO2 equivalent for 2021.

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But investors and climate activists have repeatedly asked the bank to do more, with investors managing $2.4 trillion calling on Credit Suisse this week to take tougher climate action, including cutting its exposure to fossil fuel assets.

Regardless of Biden’s claims that his administration is not responsible for high gas prices, Biden-led policies have damaged oil production. American oil production is down drastically from 2019, the year before the pandemic. Oil production in 2022 is 12 million barrels or 8 percent less than in 2019.

Biden’s war on American energy independence has increased the cost of gas to record-setting levels. Increasing six cents over Wednesday night, the price of gas is now $4.318, a 59-cent increase from last week, according to AAA.

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