President Joe Biden has long been a staunch supporter of America’s abandonment of crude oil in favor of renewable energy. However, his administration recently opened up a proposal to OPEC to increase production.
The Biden administration relies on OPEC
From the beginning of his term, President Joe Biden has pledged to lead the United States out of dependence on fossil fuel sources in the context of global warming becoming more and more serious.
During the presidential debate with rival Donald Trump in October 2020, Mr. Biden asserted: “The oil industry is very polluted. Over time, we have to replace fossil fuels with energy sources. regenerative”.
On August 12, however, the Biden administration opened a call for Saudi Arabia and its allies to pump more crude into the global market. Washington believes that helping people access affordable energy is an important task.
In a statement, national security adviser Jake Sullivan said that the increase in crude oil production by the world’s key producers is not enough at this critical time as economies begin to recover. recovery after the COVID-19 pandemic.
According to Bloomberg, the Biden administration made its offer to OPEC just two days after the world’s top climate scientists urged countries to quickly reduce carbon emissions by gradually phasing out fossil fuels. John Kerry, the US president’s special envoy on climate issues, also called on Washington to “act actively”.
Rising crude oil prices reveal Biden’s difficult position
Washington’s new move does not mean that Biden suddenly turned away from clean energy sources, but it does show that the US president is facing great political pressure, because a majority of voters voted for he will not accept the sharp increase in gasoline prices.
Sharing with Bloomberg, a White House official emphasized that the Biden administration remains committed to a greenhouse gas-free economy by 2050 and decarbonizing the energy sector by 2035.
At the same time, Biden is looking for ways to give Americans access to affordable fuel, the official said. If gasoline prices soar unchecked, the recovery of the world’s largest economy could be hindered.
In a statement, the White House said OPEC’s current plan to increase output was too slow, making it difficult for Mr. Biden’s ambitions. Elsewhere, crude output by the US shale industry has leveled off. significantly after accelerating in the 2010s. Since last year, crude oil production in the US has fallen to about 11.3 million bpd as operators focus on improving returns for investors instead Since the beginning of this year, the world crude oil price has increased by more than 40% and the average gas price at gas stations across the US has exceeded 3 USD/gallon since May. In July, the US consumer price index (CPI) increased 0.5% month-on-month and jumped 5.4% year-on-year, according to data from the US Department of Labor.
After more than a decade of low inflation, prices have surged, whether in the housing sector or in consumer goods. The broken supply chain also puts some industries under stress. Further escalation in oil prices will certainly worsen the economic picture.
The two contrasting moves by the Biden administration highlight the challenges politicians around the world face in the transition from oil to renewable energy while keeping gas prices stable. oil in water.
In addition, it also proves that political barriers can force governments to downsize green strategies to preserve economic interests, Bloomberg further noted.
Bob McNally, president of consulting firm Rapidan Energy Group, commented: “The Biden administration is under tremendous political pressure because of the issue of inflation, where the skyrocketing gasoline price is easy to see and most offensive to the public”.
T&G International Joint Stock Company
Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi
Hotline: 0345786803
Email: hrm@tginterjsc.com
Website: http://tginternationaljsc.com
