US oil CEO warns industry can't pump more natural gas 'on a dime'
Biden announces new plan to supply Europe with more US liquefied natural gas amid Ukraine war
Canary Oilfield Services CEO Dan Eberhardt urged the Biden administration to ‘move quicker’ to approve federal drilling permits.
While one U.S. oil producer feels confident in its ability to pump more domestic oil, the CEO cautioned production won’t speed up anytime soon on "Varney & Co." Friday, despite President Biden’s recent natural gas deal with Europe.
"I think you're going to see U.S. production rise," Canary CEO Dan Eberhart told FOX Business’ Stuart Varney, "but it also takes time."
"We can't turn on a dime to add this production given the recent price increase, it's going to take some time," he continued. "There's a lag."
Biden announced Thursday the U.S. reached a deal to export more liquefied natural gas (LNG) to the European Union, curbing their reliance on Russian fossil fuels. Pressure and urgency to get more supply on the global market has mounted amid record-high prices.
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But Eberhart says it’s more challenging than ever to do business.
View of the pumpjack in the oil well of the oil field. The arrangement is commonly used for onshore wells producing little oil. Pumpjacks are common in oil-rich areas. (AP/iStock / AP Images)
"I think the regulatory climate has been a big headwind," he said. "The Biden administration has made it more difficult to be in the oil business."
The oil industry is also facing production hurdles many businesses may find familiar.
"It's hard to find labor, stuff from China is taking six weeks, not three, our insurance costs are up, our fuel costs are up, which, pun intended, does affect us, too," Eberhart explained.
Canary’s oilfield, located in the heart of the Marcellus Shale in the northeastern U.S., has the capacity to increase production from 11.6 million barrels per day to 14 or 15 million barrels, but Eberhart put onus on the Biden administration to set the "right structure."
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Canary Oilfield Services CEO Dan Eberhart says further sanctions by Western allies on Russia could cause gas prices to spike.
"[The Federal Energy Regulatory Commission] and the [Department of Energy] have been sitting on these permits for these export terminals for LNG," he said. "And I think the administration's going to have to pick up the pace on that so that we can help Europe and hurt Russia."
"We're the Saudi Arabia of gas, and a lot of people don't know that."