1) Production changes based on existing infrastructure
2) Production changes based on changes in infrastructure.

#1 responds easily to price changes because a significant part of the cost is sunk/fixed. It is relatively easy (and inexpensive) for oil companies to increase production from existing infrastructure based on price increases.

#2 responds to more fundamental/longer-term industry dynamics, such as how government policy will reward or penalize certain activities. It is difficult and expensive for oil companies to develop new infrastructure, which would be a way to shift the supply curve out. To take on that risk, they must be confident that the economic conditions in the future -- not the present -- will be favorable. The left's (e.g., Biden admin's) war on fossil fuels makes these expected conditions unfavorable on a relative basis, so production capacity doesn't grow as much as it would in a more favorable environment, or grow at all.

Long story short, it should not surprise anyone that more oil is being produced today in a higher oil price environment despite the fact that the Biden administration (and the left generally) makes it more difficult and less attractive for the oil industry to invest in new capacity. The irony here is that 1) the Biden admin suffers, as it is (rightfully) blamed for higher prices, while 2) some of our most significant adversaries -- e.g., Russia, Iran, Venezuela -- benefit from those exact same policies.