Joe Biden has driven up energy prices by halting leases for drilling on federal lands, shutting down the critical Keystone XL pipeline, and demonizing Big Oil with investigations into skyrocketing energy prices, which are globally set.
What he hasn’t been doing is anything constructive to lower energy prices. He’s thrown out shiny baubles such as the release of two days’ oil reserves onto the global markets as his claimed ‘tool’ for driving down energy prices, hoping you don’t notice his other acts. He’s pathetically begged the Saudis and OPEC sheiks to raise production in lieu of the local pipelines and production he has shut down.
But now there’s another way he’s driving energy prices sky-high and I found it in a buried lede that ran in a long story on CNN:
The move [to release reserves from the Strategic Petroleum Reserves] may instead largely act as a signal to OPEC nations and Russia that the US is serious about taking action to lower prices after those nations were reluctant to ramp up oil production to reduce prices.
Biden officials have warned the Saudis for weeks that the US would find alternative solutions if the price of crude oil topped $85 a barrel, officials said, which it did late last month. But Saudi Arabia has stood firm in refusing to increase output and has priced in — wrongly, in the view of US officials — the possibility that the US reaches a nuclear deal with Iran, two US officials said. The Saudis’ concern is that sanctions on Iran would then be rolled back, allowing the country to ramp up its oil production and compete with OPEC+.
Turns out that Joe’s hankering for a nuclear deal with Iran is driving the Saudis to hold back on production. more