Among the issues most commonly discussed are individuality, the rights of the individual, the limits of legitimate government, morality, history, economics, government policy, science, business, education, health care, energy, and man-made global warming evaluations. My posts are aimed at intelligent and rational individuals, whose comments are very welcome.

"No matter how vast your knowledge or how modest, it is your own mind that has to acquire it." Ayn Rand

"Observe that the 'haves' are those who have freedom, and that it is freedom that the 'have-nots' have not." Ayn Rand

"The virtue involved in helping those one loves is not 'selflessness' or 'sacrifice', but integrity." Ayn Rand

For "a human being, the question 'to be or not to be,' is the question 'to think or not to think.'" Ayn Rand

08 March 2022

Biden Administration Misdirection on US Oil Production

 The Biden administration is making a habit of misdirecting Americans on the causes of the increases in the cost of oil in several respects.  They have repeatedly made the claim that U.S. crude oil production is at an all-time high, for instance.  Here is the actual data on U.S. Crude Oil production per week according to the U.S. Energy Information Administration:

The peak in average daily crude oil production was in the weeks of 28 February and 13 March 2020 when the average daily oil production was 13,100 thousand or 13.1 million barrels of oil.  Oil production was reduced after that due to the Covid-19 pandemic and expected lowering of demand for oil as people stayed home or at least stayed closer to home.  The week of 29 January 2021, Biden's first full week in office, the daily average oil production was 10.9 million barrels of oil per day.  The week of 25 February 2022 the daily average crude oil production was 11.6 million barrels.  This was due to some recovery in oil demand and the price of oil due to the easing of the Covid-19 pandemic.  This is still 1.5 million barrels per day below the U.S. peak oil production.

Another Biden administration misdirection is the claim that 9,000 oil leases for oil production means that any shortfall in oil production is the fault of oil production companies.  The Biden administration has made it abundantly clear that they want the prices of oil and natural gas to skyrocket, which means they want their production to lag the demand for them.  They want this to encourage the massive mistake of a false belief in an existential catastrophe due to man-made global warming.  Oil and gas production has no long-term future according to their belief system.  Twice the Keystone XL pipeline was put on track for construction and twice its construction was halted by the Democrats and the Russian-funded environmentalist special interest groups with whom they collaborate.  This has caused the loss of massive sums of capital to its investors.  Other pipeline projects have also suffered as the Democrats ruined the investment climate.

One cannot make use of a lease to drill oil if one is not allowed to produce on that lease under reasonable environmental rules.  One cannot make use of an oil lease if one cannot build a pipeline to deliver the oil to a refinery.  One commonly cannot drill or build a pipeline if one cannot borrow money from banks and other lending institutions.  The Biden administration has been strongly discouraging banks and other lenders from making loans for purposes tied to oil production, oil transport, and oil product production.  They have discouraged liquification facilities and liquified gas transport capability.  They have also placed a moratorium on further leases on federal land and on offshore oil drilling. 

If the Biden administration were to give you the go ahead to invest a billion dollars into an oil and gas production effort, would you feel comfortable that they would not halt you in the midst of your investment or at a late stage in that investment?  If you were not very cognizant of that risk, you would certainly not be someone who should have any control over the investment of a billion dollars.

The Biden administration is definitely responsible for an unfavorable climate for oil and gas production.  It is extremely dishonest of them to claim that any shortfall in oil and gas production is due to the failure of the oil and gas industries.


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