Thursday, August 12, 2021

Biden calls on OPEC to increase oil production while limiting US energy production.

 Joe Biden 

The White House on Wednesday called on OPEC and its allies to increase oil production as gas prices continue to rise, and the alarm bells ringing over the loss of US energy freedom under President Biden. Is.

Crying at the outreach, domestic oil producers say Mr Biden should have looked to them to boost the country’s oil supply.

Instead, Mr Biden turned to OPEC, a handful of non-member allies, including the world’s 13 largest oil-producing cartels and Russia.

Since taking office, Mr Biden has restricted US oil production, issuing executive orders prioritizing climate change over the US energy industry.

Jason Mogden, president of the Texas Alliance of Energy Producers, said the administration’s policies have hampered U.S. oil production, pushing gas prices north to cut supplies.

“It only stings when the president calls on Russia and Saudi Arabia to increase their energy production when we can do it here in the United States,” he said. “Its first call should have been to American producers to meet the needs of American producers.”

Sen. John Corn, a Texas Republican, added: “It’s sad and embarrassing to ask the Saudis to increase production while the White House is to put a hand behind the backs of American energy companies.”

According to the US Energy Information Administration (EIA), which collects data on the oil and gas industry, US oil production fell from 13 million barrels per day last year to about 11.2 million barrels per day. The EIA predicts that US oil production will increase slightly to 11.8 million barrels in 2021.

David Ripson, director of the Energy Economics Program at the University of California, Davis, said that as US COVID-19 emerges from epidemics and demand for oil increases, so will domestic production.

If we do not allow domestic production to grow in response to demand, we will allow OPEC to set prices. This is going to be a long term problem. “It’s a little weird to call OPEC when prices go up, but it’s also weird to limit production locally.”

Emphasizing whether the administration would consider producing more oil locally, White House press secretary Jane Sackie said it was not under consideration.

“That was not the question we asked,” he said. “We are not questioning supply locally. Obviously, OPEC has its own unique role in the global market.

“We think OPEC can take action,” he added.

The Western Energy Alliance, which represents 200 oil and gas companies based in the West, predicts that a ban on drilling on federal land could cost GDP 33 33.5 billion and lose 58,676 jobs by 2024. Is. GDP loss of 40 640 billion and 343,088 jobs lost by 2040

Mr Mogan said the Biden administration’s policies promised to increase US dependence on foreign oil.

“The cancellation of the Keystone pipeline makes it easier for OPEC to enter our market,” he said. “It makes Saudi Arabia, Russia and Venezuela more competitive.”

The reliance came on Wednesday when the White House National Security Adviser issued a statement urging OPEC to increase production.

Mr Sullivan called on OPEC and its non-OPEC allies, known as OPEC +, to increase oil production by 400,000 barrels a day. But he warned that the COVID-19 epidemic was not enough to make up for the shortfall in early production.

“Although OPEC + has recently agreed to increase production, this increase will not fully meet the previous production cuts that OPEC + implemented during 2022 during epidemic diseases,” Mr Sullivan said. “In a critical moment of global recovery, that is not enough.”

In addition, the White House sent a letter to the Federal Trade Commission asking the agency to investigate any illegal practices by the oil industry that could lead to a rise in gas prices.

Brian Dess, director of the National Economic Council, wrote in a letter to the FTC that such illegal activities could include manipulating market prices or mergers and acquisitions that reduce competition.

“During this summer’s driving season, there is a huge difference between oil prices and the price of gasoline at the pump,” Mr Des wrote. “Although many factors can affect gas prices, the president wants to ensure that consumers do not pay more for gas due to competition or other illegal means.”

He also asked the Federal Energy Regulatory Commission, the Commodity Futures Trading Commission, the Department of Justice and the State Attorney General to resolve the issue.

Gas prices continue to rise across the country, according to AAA data.

The national average price for a gallon of gas was 3. 3.185 on Wednesday morning, the travel organization said. It was 3. 3.144 a gallon a month ago and 2. 2.174 a gallon last year.

In May, the national average crossed $ 3 for the first time since 2014, and last week, gasoline demand hit a 2021 high.

With the end of the holiday season and the reopening of the school for the fall, that number could be slightly lower, but it’s not clear if the reduction will be enough to cover the prices that have been rising steadily for the past year.

Also, the demand for fuel has eased epidemic restrictions that have forced workers to seek refuge in their homes and forced millions of Americans to cancel their travel plans.

OPEC allies cut production to meet lower demand, but cut oil supplies, pushing prices north as demand soared this summer.

During epidemics, crude oil prices fell so much, they were trading at negative prices. According to the US Energy Information Administration, a form of crude was being sold in Europe at ڈالر 9 a barrel, its lowest price in decades.

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