Oil Wars

Everyone knows that the global warming/climate change true believers in the Biden Administration hate fossil fuels and want to eliminate its use. One of Joe’s first acts was to shut down the Keystone XL pipeline while inexplicably opening up the Russian Nord Stream 2. The other blow struck against devil oil was to shut down drilling on federal land, off shore and in Alaska. The final kick in the ass to oil companies has been to pressure banks to refuse to lend money to oil companies for drilling and exploration and cancelling leases for drilling in the Arctic Wildlife Refuge.

The result was to take the US from being a net exporter of oil to an importer, especially from Russia. It also more than doubled the cost of a barrel of oil to $93. Everyone feels this when they pull up to the pump to fill up or when they pay their monthly heating bill. Indirectly it is felt in the increase in cost of everything as fuel costs increase costs for shipments and delivery. Inflation is now running at 7.5% and certainly headed higher.

Sale of Russian oil and gas accounts for 60% of its exports and 30% of its GDP. Much of Europe relies heavily on it as does the East Coast of the US. It’s not as if the US has any shortage of natural gas. The nearby Marcellus shale deposit covers much of West Virginia, Pennsylvania and New York. New York State will not allow fracking so it is not produced there and, global warming true believers and their well-financed lawyers have prevented any pipelines from being built to deliver it. They need it, but can’t get it, so they buy it from the Russians.

There appears little doubt that Putin will invade Ukraine and Biden has threatened to shut down the Nord Stream 2 gas pipeline from Russia to Germany. This will certainly cause oil prices to jump up even higher. If Russia retaliated by stopping shipments of gas to the US, the east coast of the US would be in deep shit. The issue is not that we do not have enough natural gas, it’s that there are not sufficient pipelines to deliver it!

Biden’s team has put the US in this box and his global warming fanatics will not permit him to get out of it. I suspect gasoline prices at the pump will be at least $7.00/gallon by the time mid-term elections roll around and Biden’s approval rating will be near 30%. Let’s just hope we don’t find ourselves in another war over oil, especially when we are sitting on oceans of it.