Politicians are adept at talking out of both sides of their mouths – and no one better than President Biden. He said on the campaign trail that he wanted to shut down the oil industry. Upon taking office he started to do just that.
Now that Biden has been caught in the results of his own policies – the desire to end the use of fossil fuels and the inflation he triggered with his big spending bills – he is conflicted. On one hand, he stays firmly committed to the Green New Deal’s reduction in the production of oil but finds it necessary to curb the inflation by … increasing the production of oil by other nations.
In terms or crippling the oil industry, Biden is unrelenting. He continues to hinder oil drilling, refining and distribution. In terms of fighting inflation, his efforts seem to be more symbolic than substantive.
In the latter case, he has released oil from the national emergency reserves – to be held in the event of some catastrophic events or wars. It has had no impact on the pump price of gasoline – and Biden is smart enough to know that.
Even as he threatens the industry with extinction, he says they should increase domestic production. Of course, Biden knows that is impossible since every domestic refinery is already operating at virtual 100 percent capacity.
Rather than increase domestic oil production, Biden is scrounging around the world – dealing mostly with adversaries – begging them to increase their drilling. Correction: He is not “begging” them. He is “bribing” them with concessions detrimental to America’s own national security. He his hinting at removing sanctions on Iran and Venezuela. He is going hat-in-hand to Saudi Arabia – a nation he unwisely declared to be a pariah state.
These efforts are not only embarrassing, but they are also dangerous and will not succeed. Saudi Arabia is already producing at the max. They could not pump any more oil into the market if they chose to do so. Biden knows that even as he goes to beg oil from the Saudi Crown Prince. In fact, French President Macron told Biden as much in an open mic booboo at the NATO meeting.
What Biden is NOT doing is also significant. He his not reversing any of the policies he implemented to reduce American oil production. Insofar as those actions successfully reduced domestic oil production, Biden shares responsibility for the supply shortage that is fueling the inflation.
To get an idea of what Biden can undo, we need to reflect on what he did do to transform America from a net oil exporting nation to our current unfortunate reliance on foreign producers.
- Of course, he stopped construction on the Keystone Pipeline.
- Biden banned exploration and drilling on all public lands. This does not mean bsnning oil rigs next to “Old Faithful” in Yellowstone National Park. There are massive stretches of federal lands throughout the country – especially in the west. Nevada, for example, is 80 percent federal land.
- He has banned future offshore drilling.
- While Biden talks about the oil companies having 19,000 leases of private lands, he fails to note that his administration is severely limiting the necessary permits to drill.
- Biden administration is discouraging bank loans for oil operations.
- He is cancelling carbon credits and demanding the industry pay back the credits for the past four years. That is a devastating blow to the many small refiners and a price increase action.
- Biden has threatened the oil and coal industry with extinction. And that alone drives up prices.
While I know it will be more controversial, but I truly believe that had Biden put boots on the ground in Ukraine – and provided massive amounts of weaponry – before Putin’s invasion, there would not have been an invasion. Instead, Biden gave Putin the green light with empty threats of serious sanctions and a promise not to send in troops – but rather removing the troops we had in Ukraine. To the extent Putin’s war has impacted oil prices, Biden and the west allowed it to happen.
Biden has repeatedly declared his war on fossil fuel – and implemented a range of policies to diminish the use and production of gas and oil. The combination of threats and policies are a major reason for the inflationary pump prices – and all the consumer prices that depend on gas as a component of the supply chain.
We are all victims of Biden’s war on oil. In terms of the pump price of gas, the most accurate explanation are those ubiquitous stickers that are popping up on gas pumps across the nation, with Biden pointing to the price and saying, “I did that.”
So, there ‘tis.