WASHINGTON (Gray DC) — Getting on the road has become more expensive for many businesses, especially moving companies like OMX.
“We travel a lot,” said OMX Vice President Jim Durfee. “Trucks consume a lot of gas.”
Durfee said rising fuel costs could cause companies to cut wages for employees or even jobs.
“The biggest overhead is our building, and the second biggest is our cost of employees,” Durfee said. “We cannot get rid of the building. We finally had to institute a fuel surcharge.
For now, OMX is adjusting to rising prices in the same way as many other companies, passing the price on to customers.
According to the American Petroleum Institute, gasoline prices are often governed by simple supply and demand. API Senior Vice President Frank Macchiarola said if the United States produced more oil, prices at the pump would fall.
“It’s important that we produce more energy here in the United States, that we increase the supply,” he said.
Macchiarola said the Permian Basin in Texas is leading the charge in producing more oil than anywhere else in the United States. August Pfluger (R-Texas) said the success of the Permian Basin was the result of innovation and hard work.
“They scaled up even with fewer rigs and fewer people,” Pfluger said. “Innovation has enabled production to exceed 5 million barrels per day. This represents almost 40% of American production.
But Macchiarola said there were limits to expanding oil production, in part due to supply chain issues.
“You see difficulty getting frack sand,” Macchiarola said. “So sand to fracture the wells.”
Macchiarola said the United States has still not been able to match oil production seen before the COVID-19 pandemic began.
Copyright 2022 Gray DC. All rights reserved.