Democrats opposed and blocked Trump's plan to pay $24 per barrel for American oil in 2020. A Biden representative revealed a covert offer to purchase OPEC+ oil at $80 per barrel yesterday.
Early in September, U.S. Secretary of Energy Jennifer Granholm told Reuters that President Joe Biden was considering extending the Strategic Petroleum Reserve (SPR) program's oil release until October, which is after the program's original end date. A few hours later, however, a Department of Energy representative contradicted Granholm by calling Reuters and stating that the White House was not, in fact, considering additional SPR releases. Five days later, the White House said that it was thinking of refilling the SPR, suggesting that Granholm should go against her own recommendation.
Yesterday, a senior official revealed that the White House had made a covert offer to buy up to 200 million barrels of OPEC+ oil to replenish the SPR in exchange for OPEC+ not decreasing oil production, clearing up any uncertainty over the Biden administration's petroleum strategy. The White House, according to the official, intended to ensure OPEC+ that it "won't leave them hanging dry." The fact that this offer was made through the White House and not the Department of Energy may be the reason why a Department representative called Reuters to retract Granholm's comments regarding important administration decisions relating to the production of oil and gas. Granholm has demonstrated that she is out-of-the-loop and at a loss for words in this matter.
The discovery raises political dangers for Democrats, who in the spring of 2020 ‘Stymied’ President Donald Trump's request to replace the SPR with oil from American producers rather than OPEC+ suppliers, and at a price of $24 per barrel rather than the $80 per barrel given to OPEC+ by the Biden White House. When the Covid-19 outbreak drastically decreased oil consumption, Trump was working to stabilize the American energy industry. To fill the SPR, Trump and congressional Republicans suggested allocating $3 billion. The proposal was defeated by Senate Democratic Leader Chuck Schumer, who afterwards boasted that his party had prevented a "bailout for big oil."
Even the Biden White House's typically ardent supporters saw the Democrats' opposition to refilling the SPR as a grave mistake. The US essentially lost billions in potential profits as a result of that move, according to Bloomberg, and Biden had tens of millions fewer barrels available to him to fend against price spikes. Furthermore, according to Bloomberg, it will require a lot more oil today than it did two years ago to fill the SPR. Out of a total capacity of 727 million barrels, the SPR has 634 million barrels in it in the spring of 2020. The reserve is currently at its lowest level in 38 years, below 442 million barrels.
In light of OPEC+'s decision to reduce production today, which would raise oil prices, the choice appears even worse. The Biden administration has recently exerted all of its efforts in an effort to encourage Saudi Arabia and the other OPEC+ members, which also includes Russia, to maintain the current levels of oil output. Last Friday, the Biden administration asked for a 45-day delay in a civil court case regarding whether Saudi Arabia's Crown Prince Mohammed bin Salman should have sovereign immunity for the killing of Washington Post columnist Jamal Khashoggi, for which bin Salman has admitted culpability. I predict that the vengeful Biden government will expedite that right away, further escalating tensions with the Saudis.
The Biden White House has REPEATEDLY demonstrated a willingness to compromise America's commitment to human rights in order to serve the president's immediate political objectives. Biden should have simply allowed for more domestic oil production rather than pleading with OPEC+ to maintain or raise high levels of oil production. Instead, compared to other presidents since World War II, Biden has signed less leases for on- and offshore oil extraction. Therefore, Biden's and government officials' pleads have backfired. While Russian President Vladimir Putin's influence has grown, the opinion of the United States among OPEC+ countries has diminished.
Why did the Biden administration choose to expend so much political capital when it could have simply increased domestic oil output instead of attempting to persuade Saudi Arabia and the other OPEC+ members to increase production?
Because orange man bad, here comes mean tweets and they are totally incompetent.
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Biden's OPEC-related secret promise backfires
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Democrats opposed and blocked Trump's plan to pay $24 per barrel for American oil in 2020. A Biden representative revealed a covert offer to purchase OPEC+ oil at $80 per barrel yesterday.
Early in September, U.S. Secretary of Energy Jennifer Granholm told Reuters that President Joe Biden was considering extending the Strategic Petroleum Reserve (SPR) program's oil release until October, which is after the program's original end date. A few hours later, however, a Department of Energy representative contradicted Granholm by calling Reuters and stating that the White House was not, in fact, considering additional SPR releases. Five days later, the White House said that it was thinking of refilling the SPR, suggesting that Granholm should go against her own recommendation.
Yesterday, a senior official revealed that the White House had made a covert offer to buy up to 200 million barrels of OPEC+ oil to replenish the SPR in exchange for OPEC+ not decreasing oil production, clearing up any uncertainty over the Biden administration's petroleum strategy. The White House, according to the official, intended to ensure OPEC+ that it "won't leave them hanging dry." The fact that this offer was made through the White House and not the Department of Energy may be the reason why a Department representative called Reuters to retract Granholm's comments regarding important administration decisions relating to the production of oil and gas. Granholm has demonstrated that she is out-of-the-loop and at a loss for words in this matter.
The discovery raises political dangers for Democrats, who in the spring of 2020 ‘Stymied’ President Donald Trump's request to replace the SPR with oil from American producers rather than OPEC+ suppliers, and at a price of $24 per barrel rather than the $80 per barrel given to OPEC+ by the Biden White House. When the Covid-19 outbreak drastically decreased oil consumption, Trump was working to stabilize the American energy industry. To fill the SPR, Trump and congressional Republicans suggested allocating $3 billion. The proposal was defeated by Senate Democratic Leader Chuck Schumer, who afterwards boasted that his party had prevented a "bailout for big oil."
Even the Biden White House's typically ardent supporters saw the Democrats' opposition to refilling the SPR as a grave mistake. The US essentially lost billions in potential profits as a result of that move, according to Bloomberg, and Biden had tens of millions fewer barrels available to him to fend against price spikes. Furthermore, according to Bloomberg, it will require a lot more oil today than it did two years ago to fill the SPR. Out of a total capacity of 727 million barrels, the SPR has 634 million barrels in it in the spring of 2020. The reserve is currently at its lowest level in 38 years, below 442 million barrels.
In light of OPEC+'s decision to reduce production today, which would raise oil prices, the choice appears even worse. The Biden administration has recently exerted all of its efforts in an effort to encourage Saudi Arabia and the other OPEC+ members, which also includes Russia, to maintain the current levels of oil output. Last Friday, the Biden administration asked for a 45-day delay in a civil court case regarding whether Saudi Arabia's Crown Prince Mohammed bin Salman should have sovereign immunity for the killing of Washington Post columnist Jamal Khashoggi, for which bin Salman has admitted culpability. I predict that the vengeful Biden government will expedite that right away, further escalating tensions with the Saudis.
The Biden White House has REPEATEDLY demonstrated a willingness to compromise America's commitment to human rights in order to serve the president's immediate political objectives. Biden should have simply allowed for more domestic oil production rather than pleading with OPEC+ to maintain or raise high levels of oil production. Instead, compared to other presidents since World War II, Biden has signed less leases for on- and offshore oil extraction. Therefore, Biden's and government officials' pleads have backfired. While Russian President Vladimir Putin's influence has grown, the opinion of the United States among OPEC+ countries has diminished.
Why did the Biden administration choose to expend so much political capital when it could have simply increased domestic oil output instead of attempting to persuade Saudi Arabia and the other OPEC+ members to increase production?
Because orange man bad, here comes mean tweets and they are totally incompetent.
Let’s go brandon!!