After contributing to the high fossil fuel prices and inflation by his “go green” and “end fossil fuel” polices on the first days of his Presidency, Biden is now faced with unprecedented inflation and high gas prices. These predictable economic consequences have resulted in plunging Biden poll numbers. His approval has tanked even among his own Democrat base. So close to the November elections and with his approval down to below 40%, Biden’s “popularity” crisis has forced his handlers to take desperate actions to try to reverse this trend which is expected to generate a red election tsunami in November.
Accordingly, President Biden was trotted out to the microphone today to announce (March 31, 2022) an “unprecedented” release (call it “theft”) of 180 million barrels of oil from the national strategic petroleum reserves. The Biden release will free up nearly a third of the almost 600 million barrel strategic reserve. That is indeed unprecedented—a never before huge hit for our oil security.
The oil reserve was set up for “strategic” purposes in 1974. It was in storage for an unforeseen oil shortage, an oil embargo, war, or other disaster. In these unpredictable post-pandemic, war in Ukraine, high inflation, uncertain times, cutting our strategic reserve by almost 30% should have been undertaken with great circumspection. But Joe’s withdrawal is simply to bolster his lagging polls. Such action—although characteristic of Joe— must be labeled as foolhardy in the extreme.
But as well as foolhardy and self serving…this strategic oil theft only underscores and duplicates other Biden acts of incompetence malaprops and bungled operations such as in Afghanistan, his open border policy, and the impetuous roll out of green policies. For in this case of attempting to stem to rise of gas and fuel oil prices he is squandering cheap oil placed in the strategic preserve years ago, and endangering us all by freeing oil that may be needed for a real emergency. That cheap oil will have to be replaced by much more expensive oil in the future.
But like his other screw ups and imbroglios his acts are costly and also ineffective.
His release of one million barrels (bbl) per day for 180 days does hit our strategic oil reserve heavily—but that amount is only a drop in the bucket on the world market. The reality of the situation is much different than Biden’s handlers would have you believe. The loss of one third of oil from our strategic reserve will in all likelihood have little impact on reducing fuel oil, gas at the pump, and inflation.
First of all, Biden had just a few days ago banned the purchase of three million barrels of oil we were importing from Russia, his one million barrels of strategic oil, will not even make up for that loss. Then too the economic ramp up in the post-pandemic economy will also buoy the demand for fossil fuels and will continue to be reflected in higher prices.
Massive sanctions placed on Russia are hurting that nation and one of the predicted effects is the likely reduction of Russia’s oil production by about 3 million barrels per day. That amount withdrawn from the world market would also act to nullify the one million bbl per day effects of Biden’s theft of oil from the strategic reserve
Remember, petroleum is a world-traded commodity. There is no reason to believe that the self-serving OPEC nations who control the release to world markets will continue to pump oil at the present rate if the price of oil falls. They will simply lower production, to increase demand and keep the price at the high level which they prefer. Though Biden has attempted to encourage an increase in production from OPEC, his administrations attacks on that industry (and on Saudi Arabia) leave him no leverage with the oil producers. It was Biden who on his first days in office called for the “end of the fossil fuel industry”. He has no friends in Saudi Arabia, or OPEC nations where they will not even take his calls.
And finally, Biden led by the “green ideologues” in his administration from the beginning of his Presidency has discouraged US domestic oil production. Rather than reversing course and opening up opportunities for cheap, reliable domestic production, Biden’s plan of releasing strategic oil onto the market to lower prices will continue to have a chilling effect on any domestic investors. Few fossil fuel investors or entrepreneurs would buy into a commodity which government policy (up to a few weeks ago) has been to systematically drive down in price. And why invest in an industry which has been cut off at the knees by Biden’s concerted government policies of “going green” and calling for an end to fossil fuels?
But to make matters worse Biden’s team has not only been willing to depress domestic production with purloined oil from the strategic reserve, but with this new plan the partisans in his administration also attacked our existing domestic fuel industry with more ill-advised punitive “regulations” that will further decrease USA production. The Biden “green” zealots and crusaders have inexplicably and unwisely also threatened domestic oil producers who hold leases on government land with a surcharge if they do not produce oil from existing wells, or invest in renewable energy sources. That is no way to increase our domestic supply of secure, predictable and cheap oil.
Again, as in the past Biden disasters: withdrawal from Afghanistan, “Biden open door” southern border, the Biden Omicron pandemic, Biden’s inflation-generating spending sprees, impetuous “go green” polices, defunding the police and encouraging domestic violence, and others, it is clear Biden and his ideologue handlers shun sensible, working, rational policies but propose and support radical, outdated, failed and long abandoned social and economic nostrums popular with the far left socialist fringe.
So expect higher prices at the pump and higher costs for food and heating oil. Expect a Biden inflation surge. Our President is only concerned with satisfying the noisy prodding zealot-progressives in his radical-left Democrat party— as well as helping himself out of a self-imposed massive slump in the polls resulting from his own failed policies and his own incompetence.
He cares little about economic trials and tribulations of Americans.
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