(The Center Square) – Before heading to Saudi Arabia, the US energy industry invited President Joe Biden to visit US energy sites.
The Texas Oil and Gas Association, the Texas Independent Producers & Royalty Owners Association and more than 25 US energy associations have invited Biden and his cabinet members to tour US energy facilities across the United States.
The Texas groups represent highly skilled workers in a state that, if it were its own country, would be the world’s third-largest producer of natural gas and fourth-largest oil producer. Texas producers lead the United States in crude production in the Permian Basin and Eagle Ford Shale, recognizing that “energy is the cornerstone of security and prosperity,” said Todd Staples, President of TXOGA.
Nationally, the groups represent 11 million workers in an industry that propelled the United States to become the world’s largest producer of crude in 2019. Under the Trump administration, the United States has become the largest crude oil producer in the world, led by Texas. Under the Biden administration, months after implementing a series of restrictive policies, gas prices hit a seven-year high and inflation hit a 40-year high. Last month, the average price of a gallon of regular gasoline in the United States topped $5 for the first time ever.
From rescinding federal land and offshore leasing permits, to increasing regulations and proposed taxes, to depleting strategic oil reserves and relying on foreign oil production, Biden has done everything to hamper domestic oil production, say industry players.
While in Saudi Arabia, Biden continues his efforts to encourage members of the Organization of the Petroleum Exporting Countries (OPEC) to increase production.
Still, TIPRO Chairman Ed Longanecker told The Center Square, “There are ongoing efforts to work with the Biden administration to prioritize and support domestic oil and natural gas production to address to global supply shortages, inflation and the escalating energy crisis in Europe”.
The groups wrote Biden a letter, urging him to “consider taking another look at made in America energy” before he leaves for the Middle East. They said they would be “honoured to show you how our industry is involved in every step of the energy process, from fuel pumps to infrastructure delivering critical products to production areas across our vast country.”
But they got no response.
Instead, Biden wrote a editorial published by the Washington Post justifying his trip. “As president, it is my job to keep our country strong and safe,” he wrote. “We must counter Russia’s aggression, put ourselves in the best possible position to outperform China and work for greater stability in an important region of the world.
“To do these things, we need to engage directly with countries that can impact these outcomes. Saudi Arabia is one of them, and when I meet with Saudi leaders on Friday, my goal will be to strengthen a strategic partnership going forward based on mutual interests and responsibilities, while remaining true to core American values.
But Staples told The Center Square, “American consumers suffer” when U.S. energy policies don’t “recognize and promote the long-term national development of oil and natural gas, indispensable commodities that are literally essential to life.” modern.
“Oil and natural gas produced in the United States, and much of it here in Texas, is leading the way in production and providing continued environmental progress. Oil demand is expected to continue growing in 2022 and 2023, further suggesting that the administration must provide certainty and consistent opportunity for domestic production, pipelines and processing of those commodities our world depends on.
Instead of prioritizing domestic production, “Unfortunately, we are seeing a concerted effort to dramatically expand federal regulations that target U.S. companies, which will undoubtedly increase our reliance on foreign energy sources. “, said Longanecker. “Enhancing domestic oil and gas production, developed to the highest environmental standards in the world, is a key response to addressing these challenges, enhancing U.S. national security, and increasing U.S. competitiveness, and should be this administration’s top priority.”
OPEC announced on Tuesday that it plans to increase crude production by nearly a million barrels a day next year. “In 2023, expectations of healthy global economic growth amid improving geopolitical developments … are expected to drive oil consumption,” it said in its monthly report released July 12.
But Ben Cahill, senior fellow at the Center for Strategic and International Studies, Told Reuters “an increase in Saudi production seems unlikely”. Bloomberg News reported that OPEC producers would have to “pump crude at the fastest rate in five years in 2023 if they want to balance oil supply and demand,” which is unlikely for a number of reasons.
Longanecker adds that “global energy demand will continue to outstrip supply for the foreseeable future, even with the easing of production quotas by OPEC members, many of whom simply cannot increase capacity and production. short term”.