Senator John Barrasso, R-Wyo., Argues that the president is killing jobs across the country with his ‘radical extreme left approach’ to energy and discusses former President Trump’s impeachment trial and the distribution of the COVID- vaccine 19.
President Joe Biden has a plan to make OPEC big again, increasing the price of oil and thwarting competition from oil producers in the United States and Canada.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| USE | UNITED STATES OIL FUND LP | 35.40 | +0.15 | + 0.43% |
On his first day in office, he made decisions that spread joy across OPEC countries by revoking the license for the Keystone Pipeline, which would help make Canadian oil less competitive on the global market, allowing the cartel to maintain or even gain share in the global market. of oil. This eliminated at least 11,000 jobs in the oil and gas sector in the US and Canada, which should now be taken over by OPEC.
BIDEN’S PROMISE THAT HE IS NOT KILLING FRACKING IS THE MOST RECENT IN MIXED MESSAGES CHAIN
Management has also temporarily banned the issuance of new licenses and leases for drilling and hydraulic fracturing on federal lands, as reported by FOX Business. The US Chamber of Commerce warns that the ban on fracking would eliminate 19 million jobs between 2021-2025 and reduce the US Gross Domestic Product by $ 7.1 trillion in the same period.
This is a welcome change for the poor OPEC cartel, which has been through difficult times in recent years. Not only did they suffer a major financial blow from the historic drop in demand for COVID-19 last year, they also had to compete with US and Canadian oil and gas producers for jobs and market share for their energy exports . Last year was also particularly difficult for the group, as OPEC’s net oil export revenues were a paltry $ 272 billion, down 45.7% compared to 2019.
BIDEN MOVE’S ENERGY STRENGTHENS RUSSIA, US RIVALS, REPLACES NATIONAL SECURITY
Biden’s policies will also be a major victory for Russia and President Vladimir Putin. Perhaps it’s an olive branch from Biden after falsely accusing poor Vlad of conspiring with the Trump campaign.
Russian President Vladimir Putin. (Associated Press)
Putin could use the aid, as his popularity at home has faltered after the main Russian opposition figure, Alexei Navalny, was arrested and whose recent arrest is sparking a wave of national protests. The rise in the price of Biden-inspired oil is coming at a great time. Now, Putin can focus on more important things, like cyber attacks.
However, even before COVID-19 arrived, OPEC’s prestige on the world stage was declining. Instead of Saudi Arabia competing with Russia for the title of the world’s largest producer of oil and products, they gave the title to the United States. Now, OPEC must conspire with its former competitor Russia to still have any impact on the price of oil.
This is a far cry from the glory days of OPEC, when they controlled the global price of oil. Consuming nations would tremble with fear, especially if the cartel had the idea of cutting oil production. Fear of the recession and the gas lines would dominate world leaders. Countries around the world would beg the once-all-powerful OPEC cartel to show mercy and maintain the flow of oil so that their economies would not falter under the weight of high oil and gas prices. They would kiss the OPEC ring and, in some cases, spend their own money and their lives to protect OPEC oil fields from a number of enemies.
The other fear of OPEC in recent years was that when oil prices recovered, shale producers in the United States simply increased production, bringing down the price of oil. Still, OPEC need not fear because Biden is protecting you.
Iran, which was under sanctions, is already increasing oil production as it expects the Biden government to lift sanctions against the country. The Biden government signaled that if Iran resumed compliance with the Iranian nuclear deal, they would do so too. This would allow Iran to increase production, replacing the lost barrels by American producers. But why wait? Iran’s oil exports have already increased to 710,000 barrels a day in December from 490,000 in October, and shipments and production so far in January are rising, according to Reuters.
Some say that a lot of it doesn’t matter because the oil age is over. Concerns about climate change will reduce the need for oil and gas. Still, OPEC oil producers and fans know better. Even if the world goes to electric cars and wind turbines, the world will still need significant amounts of oil and gas in the coming decades.
CLICK HERE FOR MORE FROM FOX BUSINESS
OPEC projects that oil demand will increase from almost 100 million barrels per day to a record 109 million barrels per day in 2045. OPEC Secretary-General Mohammad Sanusi Barkindo told OPEC / World Economic Forum that, for to meet this future demand, o The global oil sector will need a cumulative investment of $ 12.6 trillion in upstream, midstream and downstream by 2045.
However, this is unlikely to happen, as banks and pension funds will retreat from investments in oil and gas, leading to a new era of higher prices and record profits for the OPEC Cartel and less profits and jobs for the US oil sector.
Phil Flynn is a senior energy analyst at The PRICE Futures Group and a contributor to Fox Business Network. He is one of the world’s leading market analysts, providing individual investors, professional traders and institutions with an updated investment and risk management vision in the global oil, gas and energy markets. His accurate and timely predictions have come to be in high demand by industry and the media around the world, and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as a writer for The Energy Report. You can contact Phil at (888) 264-5665 or at [email protected].