Energy Secretary Jennifer Granholm is taking massive criticism for breaking out laughing when asked what she could do to raise U.S. oil production and ease the burden of higher gas and heating bills on average Americans. The insensitivity of the Energy Secretary shows just how far the Biden administration is out of touch with Americans and seems oblivious to the avoidable economic damage that this administration is causing.
The Biden administration has given the U.S. a mixed-up energy policy that fails to address the realities that people need oil, gas and propane to heat their homes and gasoline to travel. Yet instead of acknowledging reality, word comes that the Biden administration is considering shutting down Enbridge Line 5 and that may cause shortages of natural gas, propane and heating oil to the Midwest.
Fox News reported that the Biden administration is reviewing the impact of replacing Michigan’s Line 5 oil pipeline, White House spokeswoman Karine Jean-Pierre said during a Monday briefing. Jean-Pierre said the U.S. Army Corps of Engineers is preparing an environmental impact statement on the construction of a Line 5 replacement. She said the administration has not decided on the existing pipeline, which Gov. Gretchen Whitmer wants to shut down.
Jean-Pierre said the study will, “help inform any additional action or position the U.S. will be taking on the replacement of Line 5.” She added that this aligns with Biden’s commitment that any pipeline/infrastructure project undergo a “full and fair review,” including any environmental impacts. Politico, citing sources, reported last week the administration was reviewing data on how closing the pipeline would affect fuel prices in the region.
Energy Secretary Granholm finds this hilarious even though she changed her tone yesterday. She suggested that the Biden administration will announce a plan to deal with the short-term and long-term impact of rising gas prices. Most people believe that it will be a coordinated release from global oil reserves. If so, that will only serve to challenge OPEC into a production war that the world’s consuming nations will lose.
In the meantime, the Biden green initiative has caused a massive shortfall of much-needed oil and gas investment in the U.S. and that is making us more dependent on OPEC and Russia which is the Biden administration scapegoat for their disastrous energy policies. Bloomberg News reports that Energy Secretary Jennifer Granholm will scrutinize the Energy Information Administration’s Short-Term Energy Outlook due later on Tuesday. What she should find is that the policies of this administration have been a major factor in the retreat of the U.S. energy industry to be a major player in the global oil and gas market.
We will also get a view on supply from the American Petroleum Institute tonight after it was reported yesterday that the US crude stocks in the strategic petroleum reserve fell by 3.14m bbl last week. Data from the Department of Energy showed that this is the biggest weekly drop since July 2017 just ahead of weekly figures due on Weds.
Inventories have fallen to the lowest since 2003 as sales are implemented in line with previously approved releases. The SPR has a total of 609.4m bbl as of Nov. 5, of which 356.9m bbl are sour crude. Releasing crude from the reserve is seen as one way for the U.S. to curb rising gasoline prices at the pump according to Bloomberg. How is that working for you so far?
The Biden administration is vindictive and angry almost all the time. They always have someone else to blame for their shortcomings and the energy crisis they helped create is being caused of course by OPEC plus according to them. Biden wants to send OPEC plus a message and scare them into raising production. Well it’s understandable that the US wants to work towards a carbon neutral situation yet the haphazard, incoherent way they’re doing it is only going to cause economic pain and ultimately have their goals fail.
What we have learned about the transition in Europe and their shortsighted thinking is an over optimistic projection about how easily oil and gas could be replaced. This actually added to greenhouse gas emissions. It has been a journey that has led many to burning dirty coal and because of a shortage of natural gas, we’re seeing a situation where prices are getting to the point that could drive many energy providers and companies out of business.
An energy policy must be based on science and not on panic. The Biden administration and many leaders around the world in their rush to save the planet, are failing to realize that their policies are going to cause a lot of harm for the poor in the world. This winter there is a greater risk that more people by far are at risk of dying from bad energy policy because of shortages than are at risk of dying from climate change.
It’s clear based on the market reaction that the rumored release from the global strategic petroleum reserve will only have a short-term reaction on prices. The market is telling us that the release from the reserve will backfire and ultimately serve to make oil prices go higher. If the Biden administration wants to help average Americans, they need to reverse their radical green energy policies.
It is not right that average Americans have to suffer for the President’s agenda. The President chooses to make us more dependent on foreign oil and spend billions of dollars of taxpayers’ money to fund his green energy lobby while average Americans struggle to put gas in their tanks, keep the heat and the lights on, and feed their families. Is it any wonder why the President’s poll numbers are abysmal?
Our target for crude oil continues to be $88.00. We’re looking for breaks to buy. Gasoline prices are going to continue to go up at the pump. Demand is strong and supplies are tight. We’re looking for a big uptick in refinery runs and despite the big release in SPR stocks, we may get a draw in crude.
Natural gas is still tight. Any cold spells should give us a real good pop in price. Global supplies are still squeezed as Russia continues to play games with Europe by cutting off supplies then restarting supplies. Russia is using this crisis to their advantage, both economically and politically. We expect that there’s still significant upside risks in natural gas so use any weakness to put on some long-term bullish strategies. Options are very expensive, but they may be worth it. You may also want to look at some type of spreads.