Energy Sec. Granholm denies high gas prices are result of Biden admin policies during spar with Hawley

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Can the government do anything to turn high gas prices around?

GasBuddy head of petroleum analysis Patrick De Haan reacts to gas prices reaching over $4 per gallon in all 50 states on 'The Story.'

Energy Secretary Jennifer Granholm insisted Thursday that policies implemented under the Biden administration had no impact on the rising energy prices Americans have faced since Biden took office last year.

During a Senate Armed Services Committee hearing Thursday, Granholm was questioned by Sen. Josh Hawley, R-Mo., on what the administration is doing to lower energy prices across America and whether she believes policies put forth by President Biden are to blame for the higher costs.

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Energy Secretary Jennifer Granholm, Sen. Josh Hawley (Tom Williams/CQ-Roll Call, Inc via Getty Images | Nicholas Kamm/AFP via Getty Images)

Citing the cost of gasoline in his home state of Missouri, as well as projections for even higher gasoline prices during the summer months, Hawley asked Granholm whether she believed the current energy crisis Americans are facing is "acceptable."

"No it is not," she said. "And you can thank the activity of Vladimir Putin for invading Ukraine and pulling essentially–"

"Oh nonsense," Hawley interjected. "With all due respect, madam secretary, that's utter nonsense. In January 2021, the average gas price in my state was $2.07. Eight months later, eight months later, long before Vladimir Putin invaded Ukraine, that price was up over 30% and it's been going up consistently since. What are you doing to reverse this administration's policies that are drawing down our own supply of energy in this country that are throttling oil and gas production in the United States?"

"With respect, sir, it is not administration policies that have affected supply and demand," she responded, shortly before Hawley interjected again.

"Here's what your president did when he first came to office," Hawley said to Granholm. "He immediately reentered the Paris Climate Accord, he canceled the Keystone pipeline, he halted leasing programs in ANWR, he issued a 60-day halt on all new oil and gas leases on federal lands and waters — that's nationwide and accounts for 25% of U.S. oil production — he directed federal agencies to eliminate all supports for fossil fuels, he imposed new regulations on oil and gas and methane emissions. Those were all just in the first few days. Are you telling me that's had no effect on our energy supply?"

Granholm then began discussing a survey that, according to her, found "94% of the oil and gas executives" believe "administration policies had nothing to do with the increase in price of oil."

"I'm not interested in opinions of those people, I'm interested in facts," Hawley responded.

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"Are you telling me that these policies had no effect? Is that your testimony," Hawley asked. "Are you telling me under oath that these policies had no effect?"

Energy Secretary Jennifer Granholm speaks during a press briefing at the White House on May 11, 2021. (AP Photo/Evan Vucci)

"I'm telling you that 94% of the oil and gas industry executives said they had no effect, so, no they did not," Granholm said.

Granholm said the COVID-19 pandemic had a lot to do with the supply and demand issues Americans are witnessing as it relates to gasoline and higher prices.

"Coming out of COVID, there was an increase in demand because people were driving again," she said. "When there was no demand, the prices dropped. That's a basic law of economics."

"I have to say, madam secretary, with all due respect your answers are insulting," Hawley said. "You said two months ago your department was on war footing. What are you doing to bring down the price of gasoline which has been consistently going up since you took office?"

Appearing to grow frustrated during the exchange, Granholm said: "Oil is traded on the global market. We are paying extremely high prices today just as they are in Japan, just as they are in Germany, just as they are in South Africa because it is –"

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"What are you doing to get it down?" Hawley asked, interjecting again.

Sen. Josh Hawley speaks during a Senate Judiciary Committee hearing on Capitol Hill, June 9, 2020. (Andrew Harnik/Pool via Reuters)

"We are calling for an increase in supply," Granholm said. "We are releasing a million barrels power day from the strategic petroleum reserve to try to balance out the supply and demand."

"Who are you calling?" Hawley said over Granholm.

Granholm said the Energy Department is calling on "domestic oil and gas manufacturers" and "international oil and gas manufacturers" to increase supply, but made no specific mention of what that process looks like.

The national average cost of a regular gallon of gasoline hit $4.589 early Thursday morning. This price topped Wednesday's previous record of $4.567, which had beat Tuesday's record of $4.523, which in turn had surpassed Monday's record of $4.470.

Gasoline prices in Jersey City, New Jersey, March 9, 2022. (Reuters/Mike Segar)

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The price comes as the European Union edges toward oil sanctions on Russia amid the Kremlin's invasion of Ukraine. It also comes amid record-high inflation, with the consumer price index reaching 8.3% in April, hovering near March's 40-year high. The price hike also follows the Department of the Interior's cancellation of an oil and gas lease sale for over 1 million acres in Alaska's Cook Inlet last week, which DOI attributed to a "lack of industry interest." DOI also canceled two Gulf of Mexico leases.

The White House has blamed Russian President Vladimir Putin for the record-high gas prices in the U.S., even coining the surge as the "#PutinPriceHike" and vowing that President Biden will do everything he can to shield Americans from "pain at the pump."

FOX Business' Tyler O'Neil contributed to this article.