9/26/2023 0 Comments Oil pricetrackerIt is hard to overstate how worried Team Biden is about rising oil prices.”īiden officials are aware that US oil companies must steadily increase supply to meet recovering demand. “But the stakes are even higher now since rising oil prices threaten to blow the Fed’s hoped-for ‘soft landing’ off course. “Rising pump prices always terrify a sitting president because they hurt consumer confidence and the president’s approval rating,” Rapidan Energy Group wrote in a note to clients earlier this month. Climate scientists say it’s critical to slash planet-warming emissions from the fossil fuels industry and eventually wean the world off oil.Īnd yet this White House is especially sensitive to spikes in gas prices because voters view pump prices as a key economic barometer. On one hand, Biden ran the most aggressive climate campaign of any president in US history. Last year, with gas prices spiking above $5 a gallon for the first time ever, Biden declared: “Exxon made more money than God last year.” The Biden administration has faced a delicate balance when it comes to the oil industry - which the president has, at times, blasted. When and if the oil production record falls, don’t expect any fireworks from the White House. “It’s perhaps less about the administration in power and more about the entrepreneurial nature of the oil industry,” said Matt Smith, Kpler’s lead oil analyst of the Americas. That would mark a 16% increase since January 2021 when Biden took office.ĭomestic oil production similarly rose under former President Barack Obama as the US shale revolution took hold, unlocking vast amounts of oil and natural gas in Texas and elsewhere. The EIA expects US output to top 12.9 million barrels per day later this year. US oil output has increased since Pence and former President Trump left office – a time when oil prices were low because of the Covid-19 emergency. Yet earlier this week, former Vice President Mike Pence vowed to turn back the “failed policies of the Biden administration” and to end “Joe Biden’s war on energy.” The 2024 presidential contender rolled out a new energy plan that includes allowing new drilling on federal lands, cutting permitting time in half and replenishing the Strategic Petroleum Reserve. Next year, US oil output is projected to climb to another record of 13.1 million barrels per day. The just-released 2023 production forecast from the US Energy Information Administration, or EIA, marks an upgrade of 200,000 barrels from its prior forecast. If anything, the outlook for US oil production has brightened recently – in large part because oil prices have rebounded from recession fears and drillers have become more efficient. But while its speed is slower than it used to be, it’s “maturing, it’s not dead,” he said. “There’s a narrative out there that US production is dead or dying,” said Hunter Kornfeind, oil market analyst at Rapidan Energy Group. The looming milestone undercuts the argument made by some 2024 GOP presidential contenders that the Biden administration is strangling the oil industry with red tape. It’s also more oil than any other country on the planet produces - the next-closest nation, Saudi Arabia, produces about 10 million barrels per day, according to OPEC. US oil output is now projected to rise to an average of 12.8 million barrels per day this year for the first time ever, according to federal estimates released Tuesday.įor context, that’s about half a million barrels per day more than the prior annual record set in 2019. And yet, on his watch, US oil production is poised to shatter all-time records set during the Trump administration. Critics accuse President Joe Biden of waging a war on the oil industry that is hurting consumers at the gas pump.
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