MCViewPoint

Opinion from a Libertarian ViewPoint

Don’t blame Putin or petroleum companies for Biden’s pump pain

Posted by M. C. on March 22, 2022

Now, as they beg OPEC, Venezuela and Iran for help to reduce onerous price and inflation consequences of their own policies ahead of 2022 midterm elections, they are likely to discover that maybe Putin and petroleum companies really aren’t their biggest problems after all.

https://www.cfact.org/2022/03/20/dont-blame-putin-or-petroleum-companies-for-bidens-pump-pain/

By Larry Bell

As his administration now scrambles to solicit supply oil shortages from OPEC, Venezuela, and Iran to reduce skyrocketing energy costs ahead of Democrat congressional mid-term election casualties, let’s remember this contradicts former 2019 candidate Joe Biden’s campaign pledge that “I guarantee you we’re going to end fossil fuels.

Let’s also recall that President Biden then inherited an America that was not only energy independent, but also a leading global oil and gas exporter, and that gas prices began going up long before Putin’s invasion of Ukraine recently provoked a bipartisan ban on Russian oil, gas and coal imports.

That ban was likely influenced by a March 8 Reuters/Ipsos poll which found that 80% of all likely voters surveyed responded that the U.S. “should not buy oil or gas from Russia during this [Ukraine] conflict, even if it causes American gas prices to increase.”

Simultaneously, inflation over the past year has risen to a 40-year high of 7.9%, most all occurring prior to the Ukraine conflict catastrophe.

Also, recall that immediately upon taking office, Joe Biden revoked a permit essential for the Keystone XL pipeline to deliver oil from Canada.

Shortly thereafter, his administration launched an effort to overturn an oil drilling program in the Arctic National Wildlife Refuge (ANWR) in Alaska, and empowered Department of Interior regulatory efforts to delay drilling permits.

Blaming U.S. companies—not Biden policies—for not producing more oil and gas, White House press secretary Jen Psaki asserted that there are 9,000 available unused drilling permits, while only 10% of onshore oil production takes place on federal land.

A big problem here, is that the companies first must obtain additional permits for rights of way to access leases and build pipelines to transport fuel, a requirement that the Biden administration’s Interior Department has made more difficult.

Next, the companies must build up a sufficient inventory of permits before they can contract rigs – requiring added regulatory difficulties of operating on federal lands.

For example, it takes 140 days or so for the feds to approve a drilling permit versus two for the state of Texas.

See the rest here

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