Last June, this newspaper published a column of similar title as overview of the current administration’s policy of investment in new green technologies by which America sacrifices all dependence on fossil fuels to meet, by 2050, the net-zero carbon emissions target set in the Paris Agreement. Now, four months later, with oil and gas in even greater demand along with tighter supply, how is that working out?
On President Biden’s first day in office, the national average price of regular gasoline was $2.39. This week, it is above $3.90 and rising.
In an attempt to compensate for the disruption of Russian oil and gas exports, President Biden banned US imports as another sanction implemented in retaliation for the invasion of Ukraine. Russian oil represents 8% of all US oil imports. President Biden said the move would contribute to a rise in gasoline prices.
To compensate, the US is seeking other energy suppliers. The president is considering relaxing sanctions for human rights abuses on Venezuela, conditional on Venezuela shipping its crude directly to the US, a crude that is very heavy and would require specialized processing. A prisoner swap has also been discussed as a component of a proposed agreement with this country basically run by the Cuban secret service.
In mid-July, President Biden traveled to Saudi Arabia to meet with Crown Prince Mohammed bin Salman (MBS) of whom Biden had previously labeled a pariah.
Besides discussions involving the 2018 killing of Saudi journalist Jamal Khashoggi and the ongoing Israeli-Palestinian conflict, Biden asked this strategic ally to increase oil exports in an effort to lower gasoline prices.
The Saudis have not only rebuffed the request, they now intend to cut production by two million barrels per day (B/d).
So, for short-term election year political price-fixing reasons, the president continues proposing more release of oil from our strategic petroleum reserves.
As these reserves, created to guard against OPEC embargoes and intended for emergencies, have already been reduced by half, the administration is creating a national security situation.
Crude oil is the world’s main source of fuel. Global consumption is approximately 90 million B/d. Total global oil reserves are estimated at 2,092 billion barrels. The US holds the world’s largest recoverable reserve base. There are 264 billion barrels of untapped oil reserves in the US.
Oil power is world economic and political power.
Biden’s policy from day one has been in order to develop green energy, we need to abolish fossil fuel energy. With this approach, in less than two years, the US has moved from energy independence to dependence on OPEC, the Saudis, and Russia. America now projects weakness both at home and abroad.
The fact is, the US does not have the resources to meet the proposed green energy conversion timetable.
Those proponents have never provided an alternative structure to replace fossil fuels which make up 80% of today’s total world energy. Americans want their energy to be available, reliable, and affordable. We need a long-term policy that represents a marriage of fossil fuel and green energy technological supply and production.
Peter Wibell, Rutledge