BIDEN GIVES US GAS
BIDEN GIVES US GAS
As you may recall, just last week, we told a group of oil and gas producers in Canada that they could expect a respite from the constant economic attacks on their sector for an undetermined but significant period of time. Among other reasons for our optimism, we cited comments made recently by BlackRock’s Chief Executive Officer and Wall Street’s Chief Sustainability Scold, Larry Fink, about the need to manage inflationary pressure by investing in the near-term development and use of fossil fuels.
This morning, President Biden further confirmed our expectations, albeit in a slightly more self-destructive and foolish manner:
President Joe Biden has announced the release of oil from the US’s strategic stockpile in an attempt to drive down petrol prices and snuff out a crude market rally that the White House has said poses a threat to the global economic recovery.
The White House said on Tuesday that the president was authorising the release of 50m barrels of oil in the coming months, in a move that would be co-ordinated with releases from China, India, Japan, South Korea and the UK.
Biden linked the release to efforts to beat back sharply rising inflation, saying Americans were “feeling the impact of elevated gas prices at the pump and in their home heating bills, and American businesses are, too, because oil supply has not kept up with demand as the global economy emerges from the pandemic”.
The decision, weeks after the US government told the Financial Times that an oil release was being considered, came after Saudi Arabia, Russia and other members of the Opec+ group of oil exporters rebuffed repeated US pleas to increase supply.
On the one hand, the move by the Biden administration is ridiculous and pointless. It won’t fix the problem. It won’t address the broader issues. And frankly, it’s more likely to backfire than it is to have any sort of positive effect on anything:
Oil prices rose on the news, with international benchmark Brent up 0.15 per cent to $79.82 a barrel, as traders calculated that the total volume to be released would be less than expected, and that Opec+ could retaliate by holding back more oil than planned. Opec did not comment.
The release is the first large unplanned release of crude oil from the US’s Strategic Petroleum Reserve — an emergency stockpile created in the wake of the 1970s oil crises — since the civil war in Libya caused a spike in crude prices in 2011.
Analysts said it was unlikely to have the impact on prices Biden hoped it would and that is was a misuse of the emergency reserve.
“A co-ordinated raid of emergency stockpiles absent a geopolitical disruption — and intended to influence global oil prices — is a fateful energy policy precedent that is likely to backfire,” said Bob McNally, head of Rapidan Energy Group and a former adviser to the George W Bush White House.
On the other hand, however, the message this sends to the world is a positive one – at least for energy producers and those who are opposed to what might be called “The Dictatorship of Woke Capital.” In brief, the White House is saying, “ain’t oil grand?”
When he took office in January, President Ron Klain Joe Biden talked a big game about climate change and ending America’s love affair with oil. On his first day as president, he issued executive orders making climate change a priority and undermining the efforts made under the previous administration to ensure that the environmental fanatics in the federal bureaucracy and in the Wall Street bureaucracies were unable to do too much damage. For months, he has prattled on about this, that, and the other reason to pursue a green agenda. Biden et al. canceled the Keystone XL Pipeline. They restricted domestic energy production. They went all-in on “greening” the nation and the world.
And then reality hit.
Now, President Klain Biden is reduced to begging OPEC to be nice and, when they reject his pleas, to using gimmicks intended to give the impression of seriousness and determination. But these people are not serious. And they’re determined only to ensure that formerly “free” world is reduced to a group of beggar nations.
Watch this video, if you can. It’s short, less than 30 seconds. Indeed, it may be the shortest surrender speech ever made. It’s Energy Secretary Granholm saying that they’ve given up the radical dream. “This is a transition,” she says, skewing the meaning of the word “transition” to mean “acceptance of reality.” We need to get off oil, she continues, but it’s gonna take some time. And right now, we need energy. Or to put it in actual English: our policies are garbage, and we have to reverse them, lest we get tarred and feathered.
What we are seeing here – in tapping the SPR, in Secretary Granholm’s sad concession, in the course-change of the “sustainability” folks in general – is the triumph of economic reality over ideological fantasy.
They’ll try again, of course, when this bout of reality is forgotten. In the meantime, they’ll continue to make terrible policies that they’ll have to walk back with even worse, more terrible reactionary policies.