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U.S. Oil & Gas Association Lashes Out at Biden After OPEC+ Decides to Cut Oil Production

U.S. Oil & Gas Association Lashes Out at Biden After OPEC+ Decides to Cut Oil Production

“Life comes at you pretty fast….”

The U.S. Oil & Gas Association (USOGA) scorched President Joe Biden after he decided to release more oil from the Strategic Petroleum Reserve (SPR) because OPEC+ decided to cut oil production.

Unfortunately, the SPR will hit a 40-year low after releasing 10 million barrels.

Ouch.

What happens when you restrict supply? Demand and prices go up. It’s simple economics.

But no. To Biden, it’s all about the evil and greedy oil companies. He’s yelled at them to stop “price gouging” and bring down the price. It’s our fault because we refuse to buy those tiny electric vehicles.

Gas prices started rising this week, with California hitting new records. Midterms are five weeks away.

The Biden administration slyly let on they knew fossil fuels remain essential to people. Biden met with Saudi Arabia’s Crown Prince Mohammed bin Salman three months ago. Members of the administration supposedly spent the last “several days” lobbying “foreign counterparts…to vote against cutting oil production.

Groveling and begging do not you far with people who hold the strings. The administration learned that quick and is now panicking:

Some of the draft talking points circulated by the White House to the Treasury Department on Monday that were obtained by CNN framed the prospect of a production cut as a “total disaster” and warned that it could be taken as a “hostile act.”

“It’s important everyone is aware of just how high the stakes are,” said a US official of what was framed as a broad administration effort that is expected to continue in the lead up to the Wednesday OPEC+ meeting.

The White House is “having a spasm and panicking,” another US official said, describing this latest administration effort as “taking the gloves off.” According to a White House official, the talking points were being drafted and exchanged by staffers and not approved by White House leadership or used with foreign partners.

In a statement to CNN, National Security Council spokesperson Adrienne Watson said, “We’ve been clear that energy supply should meet demand to support economic growth and lower prices for consumers around the world and we will continue to talk with our partners about that.”

Biden’s people whined, “Russia, Russia, Russia” because whenever someone does something, they do not like, he or she is obviously a Russian stooge.

Yes, Saudi Arabia totally caved to Putin in its decision to cut production.

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Comments

Do the Saudi’s and company want the Dems out of power that bad? Do they want the US to not coddle Iran?

    txvet2 in reply to MDP. | October 6, 2022 at 5:16 pm

    Yes to all, although they’re not opposed to making billions in the meantime.

    Stuytown in reply to MDP. | October 6, 2022 at 5:29 pm

    For many, many years OPEC has been careful to keep production at a level that maximized return but limited the potential that the industrial economies (which use the oil) would go into a recession. Now deep recession is likely and yet they have cut production. This means that they want to crush Biden, penalize him for his Iran shenanigans, and probably help take down the West, at least a peg if not much, much more. They are demonstrating to Biden and the Dems just what a realliance really means: reduced American influence, increased Chinese influence, a long war in Ukraine (costing the IS a pretty penny), and political disaster. The lefties brought all of this on the West. I hate them for it. But I must admit that there is satisfaction in seeing them get their comeuppance. I just hope that Obama is noticing the damage he helped wrought. (I doubt it.)

    smalltownoklahoman in reply to MDP. | October 6, 2022 at 6:19 pm

    I don’t think they care too much which party is in power, and yeah they don’t want us enabling Iran to be a real threat to them. This is them sticking their thumb in Joe’s eye for the way this administration has been handling relations over there.

      Massinsanity in reply to smalltownoklahoman. | October 6, 2022 at 6:53 pm

      They probably prefer the Dems have reasonable power knowing that the Dems will continue efforts to demonize domestic energy production and take actions like trying to make the domestic energy companies unbankable.

      They probably don’t want an all Republican government because then the domestic oil producers will come back on line with a vengeance. Of course, OPEC could respond with a massive production increase to drive down the market price making it difficult for US based companies to make a profit.

      The ME oil producers simply have a huge competitive advantage in that it is so cheap for them to produce a barrel of oil relative to anyone else.

        Dimsdale in reply to Massinsanity. | October 7, 2022 at 9:38 am

        I think President Trump was a better friend/ally to the Saudis that Biden ever thought of being (and I use the word “thought” guardedly in Biden’s case).

And, naturally, now they’re talking about ending the embargo on Venezuelan crude – the absolute dirtiest oil on the planet (heavy sour) that requires special refineries to process. (Yes, Texas already has them.) Meanwhile, they’re ALSO talking about banning offshore production. You can’t make this stuff up, but the Biden Admin can. Now I know what happened to all the crazy people when the Dems emptied the mental hospitals – they all ended up working for the government.

    jb4 in reply to txvet2. | October 6, 2022 at 6:49 pm

    Would ending the embargo on Venezuelan crude do much? Do they any longer have the people and physical infrastructure to ramp up production a lot any time soon? It looks like the Green Cult has sunk a lot of Europe, with the US not far behind. You could give 10 million EV cars away for free and it would not help, as there is not the charging infrastructure nor the electricity generating capacity – as CA demonstrated with their EV request about not charging them.

    Ironclaw in reply to txvet2. | October 6, 2022 at 7:33 pm

    Venezuela has huge problems. Their really good reserves are in the interior and that goop is generally too heavy to put into a pipeline. The easy way is to import some light crude and mix it into a medium blend that can be pipelined. But, the facilities to do this are in disrepair it will probably take tens of millions in investments, and months of work, to get it all sorted and moving again.

      The US (Brandon) recently shipped them some US light sweet crude which Venezuela needs to move their oil. It is so goopy that it has to be blended with light oil just ship.

      txvet2 in reply to Ironclaw. | October 6, 2022 at 9:41 pm

      See above.

      taurus the judge in reply to Ironclaw. | October 7, 2022 at 7:14 am

      Glad to see you and Tex and some others are familiar with this type of oil- it’s like Oil Sands crude up north (just sourer)

      So, readers not familiar can visualize.

      If you look at oil as it comes from the bottle in the car as a baseline- the oil being described is more between molasses or roofing pitch for a comparison.

      You either have to dilute it (cut it with lesser oils), steam it (we do this in the desert in Arab countries to get it out of the ground to begin with) or hot pipe it (heat it until it will flow)

      None of these are easy or cheap and the volume is less due to the difficulty.

      This type of system is more like a sewage lift station than a normal pipeline.

      Then you have the extra time/cost to refine and as pointed out- not every column and cracker can process this.

      So, in the best case there would be still less gas at a higher cost to produce.

Biden thinks OPEC should increase its oil production. To help him out in the midterms.

Biden does not think he should reverse his policy of destroying our own evil and greedy domestic oil production industry.

And if the Saudis don’t do what he wants they are siding with Putin. Biden has also condemned the Saudi regime as dictators and murderers.

This is supposed to make sense to voters facing massive inflation in the grocery store and at the gas pump? And incline them to vote in favor of Biden’s regime?

Is the US an idiocracy or not?

smalltownoklahoman | October 6, 2022 at 6:42 pm

Yet another reason why the midterms (and later 2024) matter so much! Ol’ Bumbling Joe has been a disaster for this country since day 1 in office!

    Ol’ Bumbling Joe may be just a puppet. IMO the real bumblers are behind the scenes and perhaps an Obama crew.

    Massinsanity in reply to smalltownoklahoman. | October 6, 2022 at 6:57 pm

    When Joe was in the oil business (before coal and before being a law professor at Penn but after truck driving, not sure if he was Black, Puerto Rican or white at the time and he may have been Jewish or Protestant or Catholic but we cant really be sure) he would take the Saudis behind the gym and rough them up.

    They would definitely increase production after that.

Hey Joe, how’s playing faux tough guy by calling Saudi a “pariah state” working out for you?

Earth to Biden, quit illegally restricting oil permits based off of something that is completely irrelevant. Follow the court order, and grant these permits. Then the USA will be in position to export oil; like they used to be.

As I understand (perhaps incorrectly), US oil extraction is not as much of a problem as refinery capacity. The EPA promptly piled on the moment Trump was out of office and the normal cycle of refinery run-shutdown-refurbish-startup was spiked fairly solid with some refineries unable to reopen due to sudden changes in policy. Get ready for some dramatic gas price jumps.

I’m confused. NordStream bad, Europe should not rely on Russian gas because of the leverage it gives over Germany and the money it pays go to support an ‘enemy’.
Yet is okay to rely on OPEC and pay OPEC because…it is better to be dependent on foreign governments??
What happens when the SPR runs out?
If midterms don’t result in a seismic shift, then the country is doomed.

Play with gas, expect a fire.

Guess now that Biden traded some Maduro family member with some American hostages, how many more leverages does Biden have left?

I knew that Russia was working with Venezuela a few years ago.

Wanna bet that Venezuela will turn its back against Biden…leaving Biden with fully empty SPR and a weakened oil and gas industry?

I see that this stupid Inflation Reduction Bill now has plans to install charging stations across the entire country. Yet, most Americans are not willing to buy an EV, even if offered for free.

I know that I would not replace my fossil fuel car with an EV no matter the cost.

Did you see how the firefighters are having to deal with the waterlogged EV’s in Fort Myers?

I predicted all of this back in fall of 2020. Why? Because I lived through the Carter days. But Biden is worse than Carter.

Hard to believe that many members of the Biden administration got college+ degrees, especially in the Ivy League. Too much indoctrination in socialism and progressivism.

We need to go back to the Patriot Education, starting with the New England Primer book or similar.

While there may be some midterm shift, there are still some few stragglers that refuse to face the reality AND shift. Those stubborn and hard heads!

We still have too many “Never Trumpers”. Only, we can no longer call them “Never Trumpers”. They don’t believe in America First so they are anti-AF.

Why? Well, Trump won’t be the ONLY person facing persecution. All of us are and will be persecuted.

Look at Madison Cawthorn, Herschel Walker, Sara Palin, DeSantis.

They went after Reagan and the Bushes, too. Don’t forget that.

“Removing Trump” from the equation won’t make the problem go away.

The rinos in the US Congress AND our state legislative branches do NOT want the AF folks.

    Maddison Cawthorn would have another term ahead of him now if he had not accused Matt Gaetz of sexual misconduct.

    Sara Palin is a highly unpopular neocon in Alaska which remembers and does not like the Bush years and does not yearn for the woman who called water boarding “a terrorists baptism” and advocated murder by drone for Julian Assange back in office.

    Don’t equate those two with Herschel Walker and Ron DeSantis. I don’t want to turn congress into a middle school where an immature person (who really has no excuse for it) tries to start a whisper campaign against someone on our side then when the principal comes in to investigate turns out to just hate his rival for captain of the team, neither do I want a massive revival of the neocon era.

When you spend years deliberately alienating a nation (Saudi Arabia) and openly try to undermine them and empower their enemies don’t expect them to actively go against their own interests in order to help you politically.

The fact that reacting to them not hurting their own economic interests consisted of openly calling them stooges of Russia demonstrates why our diplomacy doesn’t work.

Show up with threats and insults and nothing else you leave empty handed. We would not make major damages to our economy in reaction to Xi showing up with nothing but threats and insults why would Saudi Arabia do that for us doing the same thing?

They say the SPR is at a 40 year low. What they do not say is how many days it would supply 40 years ago compared to current usage. It is likely about half as many days.