Posted on 06/09/2022 4:18:34 AM PDT by FarCenter
US President Joe Biden is trying to figure out how to placate Saudi Arabia’s de facto leader Crown Prince Mohammed bin Salman and get his country to produce more oil.
Biden, under domestic criticism for high inflation, needs to somehow lower the price of oil. Saudi Arabia has more on hand than anyone.
But getting Saudi help will be hard. Biden once called the kingdom a “pariah.” A US intelligence report effectively labeled Prince Mohammed a murderer for overseeing the 2018 killing of Saudi journalist Jamal Khashoggi.
...
It’s a conundrum at the collision of two competing foreign policy desires: to be tough on Russia and tough on Saudi Arabia. The two goals have turned out to be incompatible. Each has stumbled over complications from using oil as a pressure tool.
There are two difficulties with Biden’s oil diplomacy. First, it’s far from certain that the Saudis and the other 12 members of the Organization of Petroleum Exporting Countries (OPEC) will want to increase supply or even can.
Saudi Arabia and petroleum powerhouse United Arab Emirates will not want to boost production by themselves. Doing so would effectively steal market share from their OPEC partners.
Moreover, several OPEC members, including Libya, Venezuela and Nigeria, cannot meet cartel quotas set months ago; their wells, equipment and refineries fell into disarray during the Covid crisis.
According to Argus, a commodities media company, OPEC is underperforming its quotas by more than 1 million barrels per day.
China, which has imposed no boycotts on its Russia trade, cannot ramp up purchases of Moscow’s oil. If it could, that would effectively rebalance the global market by freeing up oil it usually imports from elsewhere for sale to someone else. But, China lacks the pipeline capacity to increase purchases directly from Russia.
(Excerpt) Read more at asiatimes.com ...
An oil bind he created.
Will Biden get the Royal Reception that Donald Trump got? Will biden address tha assembled Arab world and change the mideast status quo for ever?
The United States actually has MORE oil in the ground than Saudi Arabia. It is only a matter of making the decision to extract, transport, refine and distribute it.
There could be a near glut of oil on the world market, should the US ever go back into the business.
But the only business of the Joe Stolen/”Que mala” Harris regime now squatting in the White House is monkey business.
More stupidity from the wellspring of ignorance. The US has more oil available under ground than any other region on earth. It is this president’s policy to leave it there.
That would put Biden in a complete bind: he'd either have to acknowledge the US' capability to produce the oil we need and restore energy independence to the USA, or double-down on stupid and make things even worse.
It's a no-win for Biden and either way, this would simply increase consumer frustration with "why did this take so long?" (to restore our oil & gas industry here) or "WTF how is this guy so stupid?!" if he doubles down and starts calling it the Saudi Price Increase.
Yep, short-term horrible pain for long-term gain and a complete drubbing of the Democrat Party. Worth it, IMO.
Whatever the commie idiots controlling this pedo veg do, will suck for everyone especially the US.
Brandon started his reign by repudiating all Trump achievements.
Now they are somehow trying to undo themselves a little bit.
Not easy.
Maybe Biden needs to reverse his decision on drilling here.
He needs to drill, undo regulations, and lower taxes. Drill baby drill.
As everyone has pointed out, Biden did this to himself. He killed the Keystone XL pipeline that would have boosted imports from Canada. He’s done all he could to hamper oil/gas production in the US. He imposed a ban on Russian oil/gas. He went out of his way to piss off the Saudis.
Gee....now there’s an oil/gas shortage. Who could have seen that coming?
Which would now be about ready to be online.
Increasing US oil production to make the US energy independent is a fantasy.
First, even if the US increased production to equal demand, the price would be set by the international market, since any barrel that could be sold in Europe or Asia for more than is being bid by US refineries would be exported.
Second, embargoing exports is infeasible because the US oil is expensive to produce and depends heavily in the import of cheap drill pipe from Asia. That, in turn, depends on cheap iron ore from Australia and Brazil. If the US cut off oil exports, other nations would retaliate by cutting off exports of drill pipe, steel, and iron ore to the US.
The US has already mined most of its economic deposits of iron ore, and being independent in steel is even more challenging than being energy independent in oil.
Aside from the politics of cutting oil production to increase its price, Biden, as an illegitimate president holding office by corruption and an obviously stolen election, has no moral authority to question a monarchy. Saudi kings and princes claim to rule by divine right. American presidents are required to have been duly elected in free and fair elections. The Bidet Regime can’t accuse anyone of anything without the world being reminded he wasn’t actually elected.
Have any foreign leaders come to see Biden?
Maybe none of them have any respect for him and won’t acknowledge that he is actually the President.
1. Drill baby drill.
2. Frac Frac Frac.
3. Build pipelines as needed, EPA is difficult on this.
4. Nuclear also.
5. Add refining capacity, the EPA has made this difficult.
6. Stop all subsidies for wind and solar.
7. Hydro power and geothermal where possible, California is destroying damns.
8. Lease the North Slope, and Federal waters and Federal land for leasing and then give them the permits to drill.
PROBLEM SOLVED, but this administration is against all the above. It must go!
“Increasing US oil production to make the US energy independent is a fantasy.”
I guess $2.50 gasoline on the day Biden was inagurated is a fantasy in my mind? But you are correct about world oil price it is a function of demand and production. Any additional production in the USA effects the price down. The Persian Gulf States have additional production capacity but refuse to increase production because of Biden’s Iran policy. They fear Iran. Biden’s policies have aided and abetted Iran by deed and money. Thus, they refuse to increase production.
World’s largest oil company- Saudi Aramco
Owner of America’s largest oil refinery- Saudi Aramco
Oh if only poor misunderstood Chomo Joe was president of a nation with massive oil reserves and was able to eliminate the restriction on getting the oil and refining it.
Biden has a big stupid mouth. The Biden/Obama 3rd term regime show no respect to any other leaders even if for diplomatic reasons only.
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