The “hush-hush” oil boom of Biden
A very painful truth about U.S. energy policy is being obscured by the Biden administration’s environmental crowd-pleasing fight against carbon emissions: oil and gas output is significantly increasing.
Why it matters: By attracting opposition from opponents and strengthening his (weak) left flank among restive environmental activists, President Biden’s forceful environmental agenda is winning over detractors.
However, it is happening in the context of record-breaking fossil fuel production, which has elevated the United States to the top of the world energy market standings.
Driving the news: The White House launched carbon dioxide counteroffensives on several fronts, including natural gas, autos, and industrial emissions, to start 2024 out strong.
The world’s largest economy has become increasingly energy-independent, a policy goal that has been difficult for decades. This shale bonanza has fostered an ironic (or dichotomous?) oil boom, which geopolitical analyst Ian Bremmer dubbed a “hush-hush” phenomenon.
According to the numbers, U.S. crude production exceeded 13 million barrels per day at the end of 2023, setting a record.
Furthermore, in December, S&P Global Insights pointed out that the United States is currently the largest oil producer in history, so that statistic only tells part of the picture.
According to S&P estimates, the nation’s overall production of liquids is more than 21 million barrels per day, with the non-crude and condensate part producing enormous amounts of natural gas and biofuels.
On the other hand, Republicans have criticized Biden for taking an ecologically sympathetic stance, opposing his positions on carbon emissions, oil drilling permits, and the contentious decision to suspend liquefied natural gas exports.
Alaska Governor Mike Dunleavy attacked policy “uncertainty” that is impeding resource development in his energy-intensive state during a CERAWeek press conference on Thursday. He also endorsed Donald Trump’s reelection as the presumed GOP nominee.
Even while Biden’s political rivals disagree with the numbers and the president is hesitant to take credit for them, the data nonetheless speak for themselves.
What they’re saying: Bremmer noted in a post from last week that America is now “the world’s top energy superpower” thanks to the “greatest energy boom you’ve never heard of.”
Even while it’s bad news for emissions from fossil fuels, the expert supported the energy boom as unquestionable leverage in a world growing more uncertain.
“All of this may seem like great news for the United States of America, and it is. Despite this, it’s unlikely that you’ve heard anything about it. The analyst stated, “It’s just too politically awkward a feat for either party to acknowledge, much less celebrate.”
Yes, but: As China’s economy battles to recover, enormous local production is anticipated to take a break this year, raising serious concerns about global demand.
In summary, although Biden may find it difficult to accept, and it will almost certainly hinder the fight against climate change, the U.S. energy boom has more benefits than drawbacks.
