Millions of American consumers, already struggling with highest inflation rate in more than 30 years, will hit the road this Thanksgiving weekend and pay tallest gas prices since 2012. They will probably ponder Lewis Carrol’s fantasy novel “Through the Looking Glass”, where Alice keeps running but stays in the same spot and she tells the Red Queen ” Well, in our country, you usually go somewhere else — if you run really fast for a long time, like we did. “”A kind of slow country!” The queen said. “Now, here, you see, you have to lose all you can to stay where you were. If you want to get to another place, at least run twice as fast! ”
Smashing US oil reserves
In President Biden’s America, it seems that oil policy continues to develop as quickly as it can, with little to no fruit. Indeed, it proved to be a setback for the country. Energy analysts who have followed US oil policy since President Biden took office find themselves increasingly delving into the absurdities of Alice’s Wonderland. President Biden’s latest approach to soaring fuel prices is to free up crude from the country’s strategic crude reserves. This marks first time For decades a sitting US president has had to release his emergency oil stockpile to handle soaring market-determined fuel prices. The stockpile, to remind the reader, is set up with other members of International Energy Agency as a national security tool to deal with unexpected supply shocks from wars (such as Libya in 2011) and extreme weather events (Hurricane Katrina in 2005).
Biden’s notification on Tuesday that the United States would release 50 million barrels of oil from the U.S. Strategic Petroleum Reserve to try to correct fuel prices coordinated with small stockpile releases from China, India, Korea, Japan and UK. Chinese Foreign Ministry spokesman, it should be noted, speak The country will arrange the release of oil from the Strategic Petroleum Reserve (SPR) according to its own actual needs, declining to comment on whether it will release crude in a coordinated effort led by the United States. The leading period or not. Goldman Sachs GS -1.8% so-called “coordinated release” of US-led crude, which could amount to around 70 to 80 million barrels/”drop in the ocean“For a global market that is running at around 100 million barrels per day. Hours after the announcement of the international Brent crude oil price drop rose rose more than $2.00 a barrel, as the market was expecting a more substantive issuance when it was first initiated by the Biden administration.
Blame OPEC +
The Biden administration’s SPR release follows repeated high-profile requests for production increases from the OPEC+ group. Back in August, US national security adviser Jake Sullivan was be censured Major oil producers in OPEC+ include Saudi Arabia and Russia for what he says is “insufficient crude (oil) production.” “At a critical juncture in the global recovery, this is simply not enough.” In TV interview On November 6, US Energy Secretary Jennifer Granholm responded to a question about what could be done about US gasoline price increases by stating that “Oil is a global market. It is controlled by a cartel. That cartel is called OPEC, and they made the decision yesterday that they will not increase beyond what they had planned.” Accusing the group of oil producers OPEC+ of failing to ramp up production as planned while the Biden administration is doing its best to limit domestic oil and gas production in its climate change crusade does not seem to concern the Secretary of Energy.
Early November, President Biden speak “I think the idea that Russia and Saudi Arabia and other big producers won’t pump more oil so people can get gas to work, for example, is no, right.” This comes after Biden called Saudi Arabia a “pariah” country while he was on the campaign trail. Further insulting after being elected President, Biden refused to contact the de facto ruler Crown Prince Mohammed bin Salman, insist that he would only speak to the ailing King Salman as his proper “partner”. It’s no surprise that Crown Prince Salman, OPEC’s head of policy, is more attention with more basic global oil supply and demand than the political demands of a frustrated US President worried about high gasoline prices and opinion polls. OPEC+ group, wary of exceeding scheduled oil supply increases and risks falling oil prices as outbreak of covid cases in Europe and China threatens to stifle oil demand growth globally, has repeatedly ignored Biden’s requests.
… And the US oil and gas producers
Blaming OPEC+ for high US fuel prices, Biden administration turn next to another familiar spanking boy: American oil and gas producers. Last week, President Biden Written to the Federal Trade Commission to investigate possible illegal behavior in the U.S. petroleum market, citing “evidence of anti-consumer behavior by oil and gas companies.” . “We will continue to put pressure on oil companies that have made record profits and are monitoring what we believe to be prices,” White House Press Secretary Jen Psaki told a news conference. They’re both digging there.” The American Petroleum Institute calls Biden’s request for an FTC investigation a ‘distraction’ contort “Instead of conducting investigations into the tightly regulated and monitored markets on a daily basis or begging OPEC to increase supply, we should encourage the safe and responsible development of oil and gas. natural American-made.”
In what must have been the highlight of our tour of Biden’s Energy Wonderland, the President suggested these words of wisdom: “For the hundreds of thousands of people who purchased one of those electric vehicles, they will save $800 to $1000 in fuel costs this year,” referring to the electric Hummer pickup truck. $112,595 that he test drove at General Motors GM -1.4% factory in Detroit earlier this month. President Biden does not seem to have happened that the average American household is having a hard time making money turkey dinner table or gas in their tank this Thanksgiving weekend may not have $100,000 left to spare.
Alice’s Rabbit Hole Deeper Down
Since its inception, the Biden administration has done everything to create war oil and gas in the United States. President Biden signed an Executive Order on his second day in office to “protect public health and the environment and restore science to address the climate crisis,” canceling the $7 Keystone XL pipeline. billion dollars. A series of “climate change” priority executive orders at all levels of government, halting all new oil and natural gas leases on public lands and waters, and began to consider blocking existing permits to develop fossil fuels. Blame OPEC+ and U.S. oil and gas producers in quick succession and then watch for a thoughtless discharge of oil from its stockpiles to handle the self-inflicted fuel price hikes. This administration’s mismanagement of energy matters.
On his first day in office, Biden waged a war on the oil and gas industry, destroying thousands of…
For the unlucky American consumer, running fast enough to stay ahead of U.S. energy policy not only doesn’t keep him in his place, as Alice discovered in her adventures, but could push him even deeper.
I have worked in the oil and gas sector as an economist in both private industry and consulting organisations, in Asia, the Middle East and the United States for the past 25 years. I focus on global energy development from the perspective of Asian countries that are still large markets for oil, gas and coal. I have written extensively in the fields of economic development, environment and energy economics. My publications include “Singapore in a Post-Kyoto World: Energy, Environment and Economy” published by the Institute of Southeast Asian Studies (2015). I won the 1984 World Bank Robert S. McNamara Researcher Award and received my Ph. in Economics in 1992.