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of Policies announced by OPEC The 1.6 million barrel-per-day cut in oil production is an embarrassing sign that President Joe Biden’s repeated calls for Saudi Arabia to produce more oil have gone unheeded.
To make matters worse, Biden’s anti-fossil fuel climate policy has given OPEC new life in controlling global energy prices.
Prior to Biden’s policies, the US was the world’s marginal producer, largely offsetting OPEC’s production cuts with domestic increases. Our dynamic oil industry has significantly reduced her OPEC influence on world oil prices.
OPEC+ announces surprise oil production cuts that could lead to higher prices at the pump
Biden’s war on American oil and gas changed everything. Domestic oil production in the United States, including Alaska, North Dakota, Oklahoma, Pennsylvania, Texas and West Virginia, is down by an average of about 2.7 million barrels per day. That’s 2 billion barrels cumulatively, counting.
Worse, by excluding US oil and gas from the world, OPEC has dared to reach out to consumers’ wallets by cutting its own production. OPEC is currently pledging about 1.6 billion barrels of cuts. This means he is missing 4.3 million barrels per day from the world market.
In a way, Biden has become the OPEC nation’s best friend, his policies raising world oil prices and helping Ukraine fund the Russian war machine.
Russian oil diverted to ‘friendly’ countries without drop in sales, officials claim
With gasoline prices returning to $4 a gallon in the coming weeks, Biden’s energy policy effectively imposes a tax of at least $1 a gallon on US motorists and US industry.
Remember, when Trump left office, oil prices averaged about $2.59 a gallon.
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These economic losses do not include reduced natural gas and coal production. This could and should be higher than ever given the world is using more coal and gas than ever before. Add in these cuts from Trump’s level, and the Biden administration’s assault on America’s energy has cost the U.S. economy more than $200 billion in real income losses so far since Biden took office. rice field.
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This war on America’s energy means new (threatened and real) taxes on the domestic energy industry, more expensive regulations on America’s energy production, ESG rules It discourages investment in oil and gas companies, restrictions on drilling permits, and cancellations of oil and gas infrastructure beginning with the shutdown of the Keystone XL pipeline.
The most effective way to keep the U.S. economy from being held hostage by countries that are often hostile to our economy and security, as they were in the 1970s and early 1980s, is to return to Trump’s pro-productive energy policies. That’s it. interest. It would also lower prices at the pump to American consumers, lowering Bidenflation.
Stephen Moore is co-founder of the Unleash Prosperity Commission and an economist at The Heritage Foundation.
