President Biden has passed policies that could negatively impact domestic oil supplies in the future. However, thus far the price surge is primarily a result of 3 million barrels per day (BPD) of oil production that was lost in the spring of 2020 that hasn’t fully recovered. Demand has fully recovered, so that is the fundamental reason for the surge in prices. Further, that surge began in the fall of 2020 — five months before President Trump left office.
But some people are looking for simple answers. Since Joe Biden is now president, and they recognize his hostility to the oil and gas industry, they reason that it’s a no-brainer that this is primarily Biden’s fault. And some of the angry feedback I get reflects that.
But some people are looking for simple answers. Since Joe Biden is now president, and they recognize his hostility to the oil and gas industry, they reason that it’s a no-brainer that this is primarily Biden’s fault. And some of the angry feedback I get reflects that.
The first thing I ask when someone poses this question is “How are you defining energy independence?” In reality, most people are using it incorrectly. A correct accounting would be to add up all of our energy production (oil, natural gas, coal, renewables) and then subtract our net energy consumption.
Most people view energy independence through the lens of our oil and gas production and consumption. These two sources represent 68% of U.S. energy consumption. When they see our net exports are positive, it is viewed as “energy independence.” When they turn negative, we are once again partially dependent. (In reality, we are always partially dependent, because even when our exports exceed our imports, we are still importing oil from other countries).
Link: https://www.forbes.com/sites/rrapier/2021/11/14/is-the-us-energy-independent/?sh=4bf4e71d1387