Timothy Birdnow

I have a question from a liberal who is trying to deny Biden is at fault for rising energy prices.

Clayton Goldstein says:

I want to know if we really were "energy independent” or if that was just a campaign phrase.

I want to know if we really aren’t now.

I want to know what are those actions that the Biden administration implemented and how such a reversal can happen in just 9 months?

I want the answers in relatively plain English.

I don’t want the same derisive replies I’m used to getting from the Left.

I want another car….

I respond:

1. Yes, we were energy independent for the first time in decades in 2019.
https://www.instituteforenergyresearch.org/fossil-fuels/gas-and-oil/the-united-states-was-energy-independent-in-2019-for-the-first-time-since-1957/

2. https://www.eia.gov/todayinenergy/detail.php?id=46776

According to Reuters:
https://www.reuters.com/article/us-usa-oil-outlook-idUSKBN2B1295#:~:text=%28Reuters%29%20-%20U.S.%20crude%20oil%20production%20is%20expected,its%20previous%20monthly%20forecast%20for%20a%20290%2C000-bpd%20drop.

"U.S. crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.15 million bpd, the U.S. Energy Information Administration (EIA) said on Tuesday, a smaller decline than its previous monthly forecast for a 290,000-bpd drop."

End

Whose fault was that?

3.

4. Oil and gas work on futures markets. Mr. Biden promised a number of things, including ending fracking on government land, returning the U.S. to the Paris Accord, promoting "green" energy and electric vehicles, shutting down pipelines, and a number of other unfriendly acts. Even before assuming office his policies were at work, as the investor class knew they were coming. Better to get out of oil and gas now than lose your shirt later. We saw the same thing happen with coal under Obama.

Now oil and gas companies are trying to protect their assets. They aren't exploring. They aren't developing oil fields. The gas that was available is rising in price as a result.

Gas prices also are rising because, while we are importing more from OPEC, they are raising the prices. They cut production to gouge us. And they could do it because Mr. Biden took steps to reduce American oil production.

That and they were angry about Biden's aggressive stance on the Kashoggi affair. He pissed the Saudi Royal Family off.

Thanks to Biden's policies oil producers are having a hard time getting loans from banks. Most banks are reluctant to lend them money because they fear government "green" policies and don't want to be on the losing end when Mr. Biden's administration puts the hammer down.

According to Fox Business:
https://www.foxbusiness.com/energy/us-energy-independence-on-way-out

"Moody’s reports that North American oil exploration and production companies have about a billion in debt that will mature between now and 2024, and pipeline companies have an additional $123 billion in debt coming due over the same period."

But how do they retire this debt if the U.S. government is going to disallow drilling on public lands, or regulate the manner and places that they can drill?

These all go back to Biden policies.

As for your new car, the Biden Administration's emphasis on electric vehicles is driving the price through the roof and you're not getting one from ME. Good luck with that.

Posted by: Timothy Birdnow at 11:16 AM | Comments (1) | Add Comment
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