Energy expert warns 'tight' global oil market is 'getting worse'
Daniel Yergin urges more investment in US energy resources on 'Mornings with Maria'
Global oil, energy supply ‘underinvested’: Expert
S&P Global Vice Chairman Daniel Yergin argues that the global energy supply is experiencing a ‘tight oil market’ that may impact the economy.
S&P Global Vice Chairman Daniel Yergin warned that the global energy supply is experiencing a "tight oil market," and noted that it’s "getting worse."
"There has been a wake-up call because that's why we're seeing high prices…in a belated way, there is a recognition how important domestic production is…this is a global tight market that exists," Yergin told "Mornings with Maria," Thursday.
"It's getting worse with the disruptions that we're seeing coming out of Europe with Russia."
Yergin suggested the best way to create safety for the security of U.S. energy is if the Biden administration invested more in oil production.
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"We've really had under-investment in conventional resources the last few years," he pointed out.
Daniel Yergin on oil demand, global energy security
S&P Global Vice Chairman Daniel Yergin provides insight into the global energy market.
"We now have a very tight oil market, and it was tight before Vladimir Putin crossed that border..."
On Wednesday, Yergin wrote in a Wall Street Journal op-ed that "a transition to renewable energy and electric cars will not happen without energy security, which necessitates access to a diverse and reliable array of energy sources."
"It really is the world's energy market…people don't realize…the gasoline you put in your car may well be actually gasoline that's imported from Europe…that's the most efficient way to get gasoline," Yergin remarked.
S&P Global Vice Chairman Daniel Yergin told FOX Business that the global energy supply is experiencing a ‘tight oil market’ that may impact the economy. (Reuters / Reuters Photos)
The energy expert’s comments came as Americans continue to feel the pain at the pump with record gas prices.
On Thursday, the national average of one gallon of gas was $4.75, according to AAA. Last year it was priced at $3.13 – $1.62 less.
Meanwhile, the Biden administration has exported 5 million barrels of oil from emergency reserves despite soaring U.S. gas prices.
Yergin explained that U.S. oil refineries are "going flat out," and that the problem is that the world market "needs more oil."
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"The main thing is we want to get the oil out there," he said. "We have to get more oil out there if we're going to deal with the situation that motorists are facing in America."