Frederick J. Brown/AFP via Getty Images
Despite President Biden’s claims that he is waging a war on American energy, the United States is supplying record amounts of oil.
new york
CNN
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While the world is grappling with The existential crisis of climate changeenvironmentalists want President Joe Biden to do. phased out oil industry, and Republicans claim he is. Already doing that. Meanwhile, the startling reality is that the United States is pumping oil at a breakneck pace and is on track to produce more oil than any other country in history.
The United States is on track to produce a world-record 13.3 million barrels per day of crude oil and condensate in the fourth quarter of this year, according to a report released Tuesday by S&P Global Commodities Insights.
last month, US weekly oil production reached 13.2 million barrels per day, according to the U.S. Energy Information Administration. This is slightly higher than the 13.1 million recorded in early 2020 during the Donald Trump administration. Production volumes and prices have plummeted due to the coronavirus crisis.
This is contributing to keeping crude oil and gasoline prices in check.
U.S. production is so strong, led by shale oil drillers in the Permian Basin of Texas and New Mexico, that they are supplying overseas. The United States exports as much crude oil, refined products and natural gas liquids as Saudi Arabia and Russia produce, according to S&P.
“This is a reminder that the United States is blessed with vast oil reserves. Our industry should never be underestimated,” said Bob McNally, president of Rapidan Energy Group.
Record-breaking U.S. production is helping offset aggressive supply cuts aimed at supporting high prices, primarily by OPEC+ by Saudi Arabia and Russia. Other non-OPEC oil producers such as Canada and Brazil are also pumping more oil than ever before. (Brazil is Plans to join OPEC+ next year. )
Experts have been caught off guard by the strength of U.S. production. Goldman Sachs analysts on Sunday lowered their forecasts for next year’s oil prices. The bank said the “main reason” for the downward revision to its outlook was the abundance of U.S. supply.
S&P forecasts that global oil demand will reach a record in 2024, which will be “easily met” by increased supply.
All this has helped keep oil prices relatively contained. Oil prices hit $100 a barrel at the beginning of this year, but have since fallen to a range of $70 to $75.
Energy prices soar this week after BP halts shipping via the Red Sea Due to security concerns. Still, U.S. crude oil is trading below $74 a barrel, well below the level seen when Hamas attacked Israel on October 7.
Gasoline prices approached the psychologically important level of $4 a gallon in September. But pump prices have since fallen significantly, helping to ease inflationary pressures on the U.S. economy.
National average for 1 gallon of regular gasoline It was $3.08 per gallon. Prices on Tuesday were down from $3.14 a year ago, according to AAA.
Despite record output, Biden has faced criticism for his energy policy.
“Unfortunately, the current administration continues to pursue policies that restrict access to new production, especially federal lands and waters. The world will continue to demand more energy, not less.” We urge policymakers to recognize the role that U.S. energy production can play as a stabilizing force for consumers at home and abroad,” said American Petroleum Institute Senior Vice President for Policy and Economics. . said Regulatory Affairs Director Dustin Meyer in a statement Tuesday.
September, House Energy and Mineral Resources Subcommittee held a public hearing The title is “Biden’s Domestic Energy War Threatens All Americans.”
Sen. Dan Sullivan, Republican of Alaska, warned: floor speech He says the Biden administration’s energy war is a “gift to our adversaries.”
Somewhere earlier this month Republican presidential primary debate, Florida Governor Ron DeSantis has vowed to “open up all of the country’s energy to production” to “lower gas prices.” DeSantis made similar comments during a CNN town hall last week.
The fact that the United States is on track to produce more oil than any other country to date undermines the argument that Biden is waging a war on American energy.
Of course, that doesn’t mean Biden’s policies paved the way for record growth for the United States. Oil production was also in no rush for the White House to take credit for it.
McNally, a former energy official for former President George W. Bush, said there wasn’t much the president could do about U.S. oil production other than invoke sweeping emergency powers.
Unlike OPEC countries, oil production in the United States is determined primarily by the free market.
“It’s not like President Biden or any other president has a dial in the Oval Office to ramp up production,” McNally said.
Rather, the surge in U.S. output has been driven by smarter, more efficient operations by oil companies. Energy companies have figured out how to squeeze more oil out of the ground, often without significantly increasing drilling volumes.
The shale oil revolution has been driven by new drilling techniques to uncover new resources. However, this technique can be more complex and requires large amounts of water.
“Kick and scream”
But McNally said the White House is being forced to shift from its climate-focused stance on fossil fuels in 2020 and early 2021 to a more neutral stance.
Last year, Russia’s invasion of Ukraine sent gasoline prices soaring above $5 a gallon, causing panic in the oil market.biden Urged U.S. oil companies to pump more oil – exactly the opposite of what climate scientists want.
In March, the Biden administration Willow oil drilling project approved, ConocoPhillips’ controversial drilling operations in Alaska have been stagnant for decades.That green light appeared in front of me Fierce criticism from climate change groups I’m concerned about the risks to the environment and health.
“President Biden is being dragged kicking and screaming as he moves from his initial consolidation strategy to a more pragmatic policy,” McNally said, adding that the administration is “pushing up gas prices and Russia’s invasion of Ukraine.” I am troubled by reality.” ”