We were able to accept President Biden’s attempt at a quid pro quo from Saudi Arabia. Americans also understood that Democrats knew that rising gas prices would be a problem in the midterm elections. Saudi Arabia stated that the Biden administration requested them to ensure that OPEC production was maintained for a month following the meeting. This time period coincides with the November 8 election. Despite Team Biden’s pleas, OPEC+ voted for a reduction in output. It was a poke in the Saudis’ eye, and anyone who believes it wasn’t is simply not thinking.
Gas prices began to rise just a month prior to Election Day. The Biden administration was forced to act when the GOP started to dominate the generic ballot. They sent out a tweet that included a graphic.
The Biden-Harris Administration is taking additional steps to reduce gas prices. pic.twitter.com/u0tZrai13q
— The White House (@WhiteHouse) October 19, 2022
What will Team Biden do if the Strategic Petroleum Reserve is depleted? National security is the primary purpose of the SPR. Biden treats it as a piggybank to borrow some goodwill before the election, while there is a war in Europe and China is looking at Taiwan. It is not a long-term solution.
The SPR spigot will be shut down on November 8th, and prices will rise again. Michael Shellenberger, activist, and author, reported in July.
According to an anonymous senior lobbyist in the oil and gas industry, President Joe Biden has no plans to significantly increase American oil and natural gas production. He also has no energy plan beyond November.
The person spoke out about Biden’s actions regarding oil and gas production, saying that there was no “grand strategy”.
The graphic’s second point acknowledges that the administration must replenish the SPR in the future. In 2020, I remember that congressional Democrats stoked a Department of Energy proposal to replenish the SPR’s maximum capacity by buying 77 million barrels of crude oil at $24 per barrel. It was referred to as a “bailout” of the oil industry.
The DOE proposal was a lifeline for domestic production in order to prevent the price from falling after the global pandemic lockdowns. It is cheaper to fill the SPR at bargain prices than to refill it when crude oil is at almost $90 per barrel and is expected to rise. The price per barrel has risen to $130.50 in the past year. Biden’s domestic energy policies could help it reach that level again.
In an environment where there is a limited supply of energy to fill the SPR, the government will bid against consumers to buy energy. This will raise prices all around. The government could also have an asset if oil prices rise after purchasing it. Profit is only recognized when it is sold and the taxpayer does not receive any tangible benefit.
What savings does the third bullet refer to? Although the SPR might temporarily lower wholesale prices for commodities, futures are used to price them. The margin at your local gas station for a gallon at a pump is almost zero. The price at the pump is not set by the energy companies. Private and franchise business owners set the price at the pump.
Joe Biden has never owned a business. If they can make a profit, no business owner will set a price too high in an inflationary environment. If the administration was aware of widespread price fixing, it would be prosecuting. The administration is not requesting that owners lower their prices. This tells us that it is purely performing.
Hilariously, Biden denied that the additional SPR release was motivated by the emergence of a red wave on Election Day. Biden answered a reporter’s question about Republican claims that the SPR release was meant to aid Democrats within three weeks. It makes sense. Joe, I’ve been doing it for how many years now.” When it comes to energy policy, you are a one-trick pony.
Biden tried to rewrite the history of his July trip to Saudi Arabia a week ago. CNN’s Jake Tapper asked him, “And by way, let me get straight about why. I didn’t go looking for oil. I didn’t go about oil. The odds against him are high.” He gave in to pressure from his left wing and declared Saudi Arabia “a pariah” regime. This is not how you influence people with all the power because of your NIMBY energy policy.
It appears like a five-year-old may be thinking of the messaging the administration has on energy policy and the plan for lower pump prices. Because it is obvious that there is no plan to reduce the energy crisis after November 8, and that any relief before that date is just political politics at the cost of national security, it seems that the message is being crafted by a five-year-old.