Oil is a complex and intricate global market
April 14, 2022
To The Eagle:
The two proponents of the price gouging oil baron theory (last week’s Eagle letters) at least stumbled into “close but no cigar” territory. What the Trump administration got us into was genuine energy independence by making us an overall net oil exporter. Oil is truly a complex and intricate global market with lots of players and moving parts, so there will always be imports and exports. We had gained the advantage of being able to pick and choose our imports and exports, making oil into our proverbial “big stick” in the sanctions business. Trump used the stick to talk mean to Angela Merkel of Germany, pointing out how two-faced it was to accept monetary and military aid from us while buying oil from Putin – which got Germany to change course.
Joe Biden, in his first days in office, did as much damage as he could to exploration, leasing, drilling, refining, pipelines, and oil finance, leaving us in short supply and handing both political and economic advantage to not only Putin, but also Iran, Venezuela, and other bad actors. Now, with the Ukraine disaster running at full throttle, we are still able to effectively sanction Russia, since we have the full cooperation of Europe, but without Russian oil, we are in short supply, which translates directly to high prices at the pumps.
So we are treated to the embarrassing spectacle of our mentally stumbling president trudging around the international community, hat in hand, begging for oil from enemies like Iran and Venezuela, while China ramps up and looks on with malevolent glee. Very sad state of affairs.