Looking at Moscow's oil revenues
Biden is 'financing' Russia's war in Ukraine
Biden said his administration will do everything possible to lower gas and oil prices.
EPA
Several oil production platforms have stopped operating due to regulations imposed by the Biden administration.
Reuters
Car fuel has become a huge burden on American families.
archival
picture
Oil and gas are Russia's largest export and constitute an important part of its budget.
Russia exports about five million barrels of oil per day, in addition to providing Europe with 40% of its natural gas consumption.
Given the high oil prices, this constitutes a great benefit for Russia, in addition to a severe blow to the economies of poor countries in terms of oil and gas.
law of supply and demand
This is the law of supply and demand in its explicit form.
If supply increases, oil and gas prices for consumers in the United States and Europe will decrease, and Russian President Vladimir Putin's revenues from oil and gas will decrease and limit his options.
When oil and gas supply declines, prices rise, consumers are hurt, and President Putin benefits from large revenues.
US President Joe Biden has taken many measures to reduce gas and oil production in the United States, which has hurt the American people while Putin has benefited.
America was self-sufficient
Over the past two years, the United States has been the world's largest producer of oil and gas, making it energy self-sufficient, and it has also become a major energy exporter.
As a result of President Biden's war on oil and gas production, the United States has become an energy importer (it even imports from Russia) and depending on the domestic market, car fuel prices have nearly doubled, costing the average American family an extra $750 per year on fuel costs.
Who is responsible for the attrition?
Only one person, the president, is responsible for draining the American consumer in the form of high energy prices and making economic life easy for Putin.
It seems that President Biden did not think about the consequences of withdrawing the licenses of oil pipelines, which prohibits any work necessary to drill and renew wells, and sometimes imposes new bans on current and proposed production.
The production of gas and oil from any well decreases with the passage of time, which requires continuing to drill new wells to maintain production levels, let alone increase it.
Last week, President Biden said his administration would do everything possible to increase gas and oil production with the aim of lowering prices.
But by the time he was saying this, his Justice Department, along with several regulatory agencies, were working in court to try to ban new domestic production in many places.
The man appears to be speaking deceptively.
Infrastructure shortage
Last week, I spoke with a friend in Texas, an important oil and gas producer.
I asked him how long it would take for his company to return to full production, if President Biden allowed the oil and gas industry to operate as much as possible.
The bad news is that it takes one to two years, maybe more.
There are oil rigs that are stored in depots, but they need well-trained people to clean them and get them ready for work, and many of those trained oilfield technicians who know how to carry out these tasks have gone to work in other sectors.
There is now a shortage of infrastructure, including pipes and freight cars, in addition to the return of trained technicians to the sector.
The costs of many materials used in this field, such as sand and steel, increased, and the available materials became limited, mainly due to the regulatory measures related to the environment.
The Biden administration has told banks to put tight limits on lending to oil and gas producers.
Temporary price hike
President Biden said that the rise in oil and gas prices is a temporary issue, and that they will fall quickly, but in fact, the only way that will reduce oil prices is in an economic depression in the country, which leads to a significant decrease in demand for oil.
Without a recession, fuel prices will remain high until President Biden removes obstacles to oil and gas production in more land and sea, and allows oil platforms to be operational and oil production without the need for months or years of studies, research and climate regulations.
European countries are worse off
There are many European countries that are in a much worse situation than the United States because of their obsession with the environment and by stopping the production of oil, gas, coal and nuclear plants before providing an alternative, and thus have become highly dependent on Russian gas and oil.
Under the administration of former President Donald Trump, the quantities of liquid gas that were exported to Europe increased significantly.
In fact, the US has enough natural gas reserves to fully replace Russian natural gas, but as we have noted, President Biden is doing everything he can to kill the US fossil fuel industry, including natural gas.
paradox
Paradoxically, a newly published credible new study shows that the costs of producing energy through sunlight and air are greater than the costs of natural gas.
In other words, the amount of carbon dioxide generated by the construction and operation of wind farms and solar rays platforms has a much worse impact on the environment than burning clean natural gas.
Back in 2014, we, along with others, published evidence that major Russian oil companies were providing money to US environmental groups, in alliance with the Democratic Party, to undermine US oil and gas production.
Do you think President Biden and other Democrats still get this money?
How can this destructive behavior be explained?
• There is evidence that major Russian oil companies have been providing funds to US environmental groups, in alliance with the Democratic Party, to undermine US oil and gas production.
• Many European countries have become in a much worse condition than the United States because of its obsession with the environment and its halting production of oil, gas and coal and nuclear plants before providing an alternative, and thus became highly dependent on Russian gas and oil.
Richard Ran ■ President of the Institute for International Economic Growth
Follow our latest local and sports news and the latest political and economic developments via Google news