Select Page

Hey!  What is going on with Iran?

Hey!  What is going on with Iran?

To the extent that the media and the public is almost myopically focused on the Russian invasion of Ukraine, we are distracted from other matters.  It would appear that the “fog of war” drifts over other issues in other parts of the world.  Like Iran.  What is happening there?

We should recall that President Biden has promised to re-establish the old Iranian Nuclear Deal – or at least a revised edition.  That – in and of itself – is a concern.  The original deal was bad enough, but the demands of the Iranian negotiators are even worse than before.  

Still, the Biden administration is plodding forward to get a deal – which is looking more like a face saver for Biden even if that means more concessions to the mullahs in Tehran.  And it appears that such a deal may be near.

One of the demands from Iran is the removal of sanctions – preferably before a final deal is struck.  That would be stupidity to the point of malfeasance by the Biden administration.  But unfortunately, that does not preclude acquiescence to Iran’s demands.

But why would Biden even consider such a condition?

Weeell … it has to do with oil, the Russian invasion of Ukraine and Biden’s policies of reducing domestic oil production – such as shutting down the Keystone Pipeline, banning exploration of federal lands, limiting drilling approvals, etc.

All those actions have resulted in a drop in domestic production.  It shifted the United States from an oil exporting nation to an oil purchasing nation.  And guess from whom we purchase seven percent of our oil.  If you guessed Russia, give yourself a pat on the back.

After having successfully withdrawn on dependency on foreign oil – although we do purchase a small amount – we still had surpluses.  We were now buying from Russia.  We were now indirectly helping Putin finance his invasion of Ukraine.

Our shortfall in oil meant that we had to pay the price on the open market – and inflationary price.  Pushed partly by American demand, the crude oil prices rise – and so do the gasoline prices at the pump rise – and so does virtually everything in which gasoline plays a role.  That means just about everything from apples to automobiles.

Biden has been trying to get other producers in the Middle East –and even Russia – to pump more to reduce the price America pays for foreign oil.  Now think for a moment.  What would make Putin increase production so that the United States can have cheaper gas and he could have reduced income?

Now get ready for the closer.  That is where Iran comes in.  One of the points of discussion with Iran is that THEY increase production and sell oil to the United States in return for the elimination of sanctions – all or some.

So, rather than roll back his policies restricting domestic consumption – and piss off the radicals in his Democratic Party – Biden seems to think it wiser to shift our dependency from one adversary to another.  And the entire reason for this unholy deal is a hope that reduced oil prices will slow the inflation and save the Democrats’ posterior in the 2022 midterm elections.

If Biden were to increase American production and prices would fall.  That would be a serious blow to Putin since he needs high oil prices to keep his war going – and to keep the entire Russian economy from collapsing.

Biden seems willing to trade off sanctions on a terrorist state so that he does not have to increase American production.  Biden’s main concern is that the American voters do not figure out this bit of political skullduggery.  

So, there ‘tis.

About The Author

Larry Horist

So,there‘tis… The opinions, perspectives and analyses of Larry Horist Larry Horist is a businessman, conservative writer and political strategist with an extensive background in economics and public policy. Clients of his consulting firm have included such conservative icons as Steve Forbes and Milton Friedman. He has served as a consultant to the Nixon White House and travelled the country as a spokesman for President Reagan’s economic reforms. He has testified as an expert witness before numerous legislative bodies, including the U. S. Congress. Horist has lectured and taught courses at numerous colleges and universities, including Harvard, Northwestern, DePaul universities, Hope College and his alma mater, Knox College. He has been a guest on hundreds of public affairs talk shows, and hosted his own program, “Chicago In Sight,” on WIND radio. Horist was a one-time candidate for mayor of Chicago and served as Executive Director of the City Club of Chicago, where he led a successful two-year campaign to save the historic Chicago Theatre from the wrecking ball. An award-winning debater, his insightful and sometimes controversial commentaries appear frequently on the editorial pages of newspapers across the nation. He is praised by readers for his style, substance and sense of humor. According to one reader, Horist is the “new Charles Krauthammer.” He is actively semi-retired in Boca Raton, Florida where he devotes his time to writing. So, there ‘tis is Horist’s signature sign off.

5 Comments

  1. Ben

    Iran is going to seize the moment with a moron in the White House

    • Tommie

      AMEN!!!!!!

  2. Frank stetson

    Larry, I had updated you on the oil import and net importer status, but apparently you didn’t read it.

    Yes, the US became a net exporter of crude oil in 2020. This was not due to any great Trumpian policy unless you count a miserable pandemic response. It was caused by the pandemic and a severe drop in demand.

    Since 2010, well before trumps time, the US has been a net exporter of all oil products.

    The amount of Russian oil we get is fairly minuscule. The US production levels have not yet returned to pre-pandemic levels, I am pretty sure you cannot pinpoint any Biden policy that reduce soil production in 2021. You mention the Keystone oil project has affecting domestic production. I’m pretty sure you know that keystone pipeline is meant to carry Canadian oil.

    Speaking of which, You do realize that most of our imports come from Canada and Mexico, and often the term oil independence is used for North American products rather than US only. In other words, we treat Canada and Mexico as our 51st and 52nd states in this regard. Apparently, given your phrasing on the Keystone oil pipeline, you do too.

    Like I said, any Biden policy did not affect oil production in 2021. The demand downturn of 2020 during trumps reign did. As to going forward, I would have to look at each case on a case by case basis, but in general, I am not a proponent of drilling on federal lands. I would rather such labs be kept pristine and that we pivot our efforts to renewable energy. While more costly in the short run, it is more economic and efficient in the long run.

    Also, if we can create a deal for Iran to cease nuclear arms development in a way that can be monitored by the world, and begins to ship some oil to us as well, and in return we lift the sanctions, that would be a good thing. If lifting the sanctions early is a carrot we can put on the table, I would rather do that then hit them with a stick. The around or may not of been perfect but it was better than the boogered result Trump came up with. Hopefully, Biden can do as well with this reengineering of the deal as Trump did with NAFTA.

    And as far as dependency on for an oil, blow it out your nose. Our imports are not that big as to be termed a dependency. Never have been. And we have always been a net exporter of all petroleum products. Since 2010. The vast amount of imports mainly come from Mexico and Canada anyway. And you were all for Canadian oil, it almost seems that you already think it’s American…

    • larry Horist

      I will make this simple for you. America IS dependent on oil to fill our need. That is why we buy foreign oil. Under Trump, America because a NET exporter of oil. Biden ended that. Biden policies triggered oil inflation long before the Ukraine invasion. Our gas prices would not have been as bad if they were not already inflationary before the invasions. We buy oil from Putin — giving him money to fight his dirty little war. I will stop at that since I do not want do get beyond your ability to grasp complex facts.

      • Frank stetson

        All snarkiness aside, I will again tell you that we became A net exporter of crude oil in 2020 due to a lower demand due to the pandemic due to the Trump response due to Trump policies.

        The oil we get today from Russia is a pittance and no doubt we can make up for it either through our own oil, Mexican oil, or Canadian oil, of which we continue to import a lot of.

        Every EIA report on oil references both the pandemic affect on net exports as well as the size and scope of our current Russian imports. One only really needs to look. I even provided links in the original passage the last time you try to blow this smoke up our dresses. .

        We have been her next exporter of all oil products since 2010; that did not change in 2020 or 2021.

        I agree inflation happened on Biden’s watch, much of it due to the Trump infusion of massive amounts of cash eiatliet through stimulus of which his values were higher than Biden’s, or via the tax cuts which were extreme and targeted to the rich who really don’t need to spend the money immediately. And yes the current world oil situation will increase inflation for oil across the entire world even if our supplies are not greatly impacted due to it.

        I do understand why you did not provide facts supporting your statements here. Because they don’t exist. And I have to love when a person says the keystone pipeline affects US production of oil. Always good for a chuckle.

        None of this really matters regarding the Iran deal except to say that an Iran that does not produce nuclear weapons is a better Iran and if we purchase some oil and bring Iran into the world economy by reducing or ending the sanctions, all good thanks.

  1. The story of Tyre Nickol’s and his tragic death at the hands of Memphis police officer is impossible for understanding.…