Summary
U.S. Energy Secretary Chris Wright said on Monday that the federal government will announce steps within days designed to help refiners raise fuel production, as the administration seeks to blunt elevated gasoline prices that rose during the conflict with Iran. Wright made the remarks at an oil rig site in Midland, Texas, and said the policy focus is on enabling refiners to further ramp up throughput.
Details from Midland
Speaking at a site operated by ExxonMobil in the Permian Basin, Wright told reporters that Washington plans to set out actions in the coming days aimed at helping refiners increase output. "The United States refineries are running at record high, but we have refineries in the Middle East that are turned down," he said, noting that he met with refiners on Monday "about what we can do in the government to help them further ramp up their throughput."
Wright framed increased refinery activity -- in the United States and elsewhere -- as the primary lever for reducing gasoline prices at the pump.
Market and political context
Persistently elevated gasoline prices remain a political risk for the Republican party as it defends narrow majorities in both houses of Congress ahead of the November midterm elections. The average U.S. price for regular gasoline is more than $4.06 a gallon, according to AAA, an increase of more than $1 per gallon from a year ago and nearly 30% higher year-over-year. Wright linked the administration's actions to efforts to curb those price pressures.
Remarks on the conflict and shipping
Wright reiterated comments President Donald Trump made at a political rally, saying Trump asked Americans to "bear with him" and argued that paying "a tiny little bit more for your gasoline" was worth the objective of preventing Iran from obtaining a nuclear weapon. Wright said the president was asking for public patience because, in his words, the world cannot afford Iran having a nuclear weapon.
Wright later spoke with Fox News, stating that 30 ships transited the Strait of Hormuz on both Saturday and Sunday, and adding that Iran "can’t export any oil right now." When asked whether traffic through the strait could return to pre-war levels of 20 million barrels per day, Wright said he did not know the future, "but I will tell you we’re going to continually get better at escorting traffic out, and the power of Iran is going to continue to shrink."
Responding to a question on whether President Trump has the option to wait Iran out as sanctions and an embargo tighten around Iranian oil in the Strait of Hormuz, Wright said: "I think he does. The president is playing the long game."
What officials say they will do
Wright described the upcoming measures as steps the government can take to assist refiners in raising throughput, without outlining specific regulatory changes or programs at the Midland event. He emphasized engagement with industry representatives as part of the effort to increase fuels production.
Closing
As officials prepare to announce concrete steps within days, Wright emphasized that higher refinery utilization both at home and abroad is central to easing gasoline prices. Refiners in the United States are operating at high rates, but Wright noted some refineries in the Middle East remain turned down, and the government plans to work with industry to improve throughput.