Biden’s policies could lead to disaster – News Couple
BUSINESS NEWS

Biden’s policies could lead to disaster


On Sunday, former Energy Secretary of Donald Trump attacked the Biden administration’s energy policies, linking them to inflation and claiming that restrictions on the US oil industry and rising costs at home could lead to a “disaster.”

Energy prices have jumped globally in the past three months. Natural gas is up nearly 600% this year, and international oil benchmark Brent is up more than 60% over the year so far. Currently, Crude Oil is hovering around $82 a barrel.

“The Biden administration’s restrictive measures – neither to pipelines, nor drilling, nor to finance offshore oil and gas projects … are a stunning reflection of the energy independence achieved under the Trump administration,” Rick Perry told CNBC’s Hadley Gamble.

The United States never stopped importing oil during the Trump administration, despite rising domestic production. On a monthly basis, US production rose above consumption during most of 2019 and 2020, according to the US Energy Information Administration.

But the latest EIA data shows this pattern continued after Biden became president in 2021, including in US energy exports that continued to outpace imports.

With gas prices soaring in the United States, the Biden White House has pressured OPEC and its oil-producing allies including Russia to accelerate plans to increase production. But that group, called OPEC +, said last week that it would stick to its plan to increase production by 400,000 barrels per day starting in December.

“The potential for disaster is very real, both from a national security standpoint, and whether or not we can literally keep the lights on,” Perry said.

Perry oversaw pro-oil industry policies during his tenure at the Department of Energy. A former governor of Texas, he has close ties to the Texas oil industry and has held leadership positions on the boards of two petroleum companies.

Inflation problem

Aside from pressuring OPEC to produce more oil, US Energy Secretary Jennifer Granholm has pushed the Biden administration’s plans to develop domestic clean energy, arguing that the US should focus on renewable energy as a long-term strategy to ensure the US does not. Reliance on political opponents.

Perry noted a clear contradiction between the Biden administration’s stance on clean energy and its pressure on OPEC+ to produce more oil.

“On one hand, you have John Kerry going around the world, lecturing people about the use of fossil fuels, and then you have Secretary of Energy Mrs. Granholm standing up and begging His Royal Highness Abdulaziz bin Salman to send more crude so we can lower the cost of gasoline.”

“Our people are hurting,” Perry said, citing skyrocketing costs in the United States. He added that he believed that “100 dollars for oil over the next six months is possible.”

The US Commerce Department reported last month that annual US inflation rose at its fastest pace in more than 30 years during September, despite a decline in personal income.

Read more about clean energy from CNBC Pro

The White House and the US Department of Energy could not be reached for comment. Granholm acknowledged during the COP26 climate summit in Glasgow, Scotland, that the amount of clean energy available is not enough to replace fossil fuels. She said it was a priority for the administration to ensure Americans could afford to heat their homes and fuel their cars this winter.

Granholm responded last week after OPEC and its allies decided to continue with the current production plan, adding 400,000 barrels per day each month until next year.

Asked by CNBC about the US relationship with de facto OPEC leader Saudi Arabia during the COP26 climate summit, Granholm said: “In some places we have strong ties, in some places we wish our allies would move a little faster.”

Strategic Petroleum Reserve?

President Joe Biden blames OPEC+ countries for rising costs, while some oil drillers blame restrictions on the fossil fuel industry. Granholm noted that the pandemic has slowed US investment in oil, gas and drilling.

To combat rising prices, Granholm told Bloomberg in an interview last week that tapping into the US Strategic Petroleum Reserve “is definitely on the table as an option.”

The Strategic Petroleum Reserve contains up to 714 million barrels of crude oil. It is located in locations along the coasts of the Gulf of Texas and Louisiana and is the largest exporter of reserve oil in the world. It was designed to serve as a buffer to protect the United States from a major disruption in supplies, such as a natural disaster or war.

Perry noted that the SPR is not designed for “long-term help,” adding that eavesdropping on it would be a “foolish job.”

“They’re there for a hurricane or some kind of national disaster that happens,” Berry said. “Inter, use it, it’s [for] “A short period of time,” Berry said, adding, “I don’t know what the tools are [Biden]in the toolbox. I think he makes it as he goes.”

Biden said Saturday that his administration has “other tools” to deal with rising oil prices. “There are other tools in the arsenal that we have to deal with other countries at the appropriate time,” he said.



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button