President Biden Bans All U.S. Imports of Russian Oil, Gas and Energy

President Joseph R. Biden banned all U.S. imports of Russian oil, gas and energy and encouraged U.S. energy companies to continue to invest in U.S. oil production and reduce reliance on Russian energy imports.

In a letter to participants of the oil industry, President Biden highlighted the impact of the sanctions on the Russian Federation, including (i) cutting off the Russian Central Bank from the international financial system, (ii) encouraging major companies to cease business operations in Russia, (iii) prohibiting the purchase and sale of Russian securities and (iv) restricting Russia's access to technology. He called the energy ban an attack on the "main artery of Russia's economy."

President Biden also encouraged U.S. energy companies to utilize onshore oil production in the United States to reduce reliance on Russian energy imports, saying that U.S. energy companies possess 9,000 drilling permits to extract oil within the United States. In an effort to mitigate the rising gas prices, President Biden stated that an international coalition consisting of several nations released 60 million barrels of oil from its joint oil reserves, half of which was provided by the U.S. He warned U.S. energy companies that there are no excuses for companies to impose excessive price increases or exploit the rise in prices caused by the decline in energy supply. President Biden underscored that the U.S. should continue to pursue clean energy options as a safeguard against future fossil-fuel supply challenges.

In response to President Biden's speech, ExxonMobil asserted that over the last five years, it invested $118 billion in new oil and gas technologies and as a result, increased capacity to process U.S. light crude by about 250,000 barrels per day. The company urged the U.S. Government to put forth clear and consistent policies that support resource development, streamlines regulatory approval and fortifies infrastructure.