4. Energy Production vs. Climate Concerns

a. Energy production 2017-2020

1) Keystone XL Pipelinewould more directly connect the existing Keystone Pipeline System to the source in Hardisty, Alberta and the other end to the refineries in U.S. Gulf Coast.

  • Pipeline—would add $3.4 billion boost to U.S. GDP during construction
  • Production—would add830,000 barrels of oil per day
  • Jobs—duringconstruction, Keystone XL would create close to 10,400 U.S.-based jobs
  • Pushback—considerable pushback was encountered due to climate and property rights concerns, but negotiations were ongoing

https://www.keystonexl.com/siteassets/pdfs/fact-sheets/keystone-xl-project-overview.pdf

2) Energy surplus

Trump just achieved what every president since Nixon had promised: energy independence—for the first time in 70 years! And it happened not because of decades of federal “energy policies,” but despite them.
https://www.investors.com/politics/editorials/energy-independence-trump/

3) Strategic Petroleum Reserve

President Donald Trump inherited an SPR with a level of 695 million barrels. At the end of his term, the SPR was at 635 million barrels.
https://www.forbes.com/sites/rrapier/2023/07/07/which-presidents-filled-and-depleted-the-strategic-petroleum-reserve/?sh=4801d8b830ef

4) Gasoline prices

Gasoline prices under Trump averaged $2.57 per gallon, due to policies he instated and partially due to Covid lowered demands.
https://www.forbes.com/sites/rrapier/2023/03/08/average-gasoline-prices-under-the-past-four-presidents/?sh=626fc5ed64e6

b. Energy production 2021-present

1) Keystone XL Pipeline stopped—on the first day of Biden’s presidency, he issued an executive order canceling the Keystone XL pipeline which invited the lawsuit brought by 21 states who say they will be hurt economically by the decision. 

  • Loss of jobs—TC Energy (formerly TransCanada), which runs the $8 billion pipeline, announced plans to cut 1,000 jobs “immediately.”
  • Cost of forfeited contracts—21 states led by attorneys general from Texas and Montana have sued President Joe Biden, alleging he overstepped his presidential authority in canceling the pipeline.
  • Loss of production—the proposed pipeline expansion would deliver more than 800,000 barrels of carbon-intensive tar sands oil per day.

https://www.vox.com/22306919/biden-keystone-xl-trudeau-oil-pipeline-climate-change

2) Gasoline Pricesthe average weekly retail gasoline price hit an all-time high of $5.07 per gallon. Since then, gasoline prices have fallen substantially, and were most recently $3.51/gallon.
https://www.forbes.com/sites/rrapier/2023/03/08/average-gasoline-prices-under-the-past-four-presidents/?sh=626fc5ed64e6

3) Strategic Petroleum Reserves (SPR)—President Joe Biden inherited an SPR at 638 million barrels. However, first in response to rising gasoline prices, and then as a result of Russia’s invasion of Ukraine, President Biden announced the most aggressive SPR drawdown in history. As of March 29, 2024, the SPR stands at 363.64 million barrels.
https://www.forbes.com/sites/rrapier/2023/07/07/which-presidents-filled-and-depleted-the-strategic-petroleum-reserve/?sh=4801d8b830ef
https://ycharts.com/indicators/us_ending_stocks_of_crude_oil_in_the_strategic_petroleum_reserve

3) Other energy policies

To follow his green agenda, Biden has declared a moratorium on new oil and gas leasing on federal lands and waters. Nearly 25 percent of U.S. oil and gas production comes from federal lands. He directed government agencies to work toward eliminating fossil fuel subsidies by fiscal year 2022.* Industry associations objected to his executive orders, arguing that they will deter investment, kill jobs, reduce state revenues, and shift oil and gas production to other countries. Legal battles have already begun.
https://www.csis.org/analysis/biden-makes-sweeping-changes-oil-and-gas-policy

* This is proving difficult to do as legislation is needed.

4) U.S. oil purchased from Russia helps to fund the war with Ukraine

In 2021, the U.S. imports of oil and gas from Russia reached over 4.7 million U.S. dollars. Furthermore, petroleum and coal products’ import value stood at nearly 12.8 million U.S. dollars. At 538 thousand barrels daily, Russia was the third-leading petroleum import partner of the U.S. in 2020, following Canada and Mexico. On March 8, 2022, the U.S. government announced a ban on imports of oil, liquefied natural gas (LNG), and coal from Russia in response to the Russian invasion of Ukraine. However, other countries that then started buying that oil can legally refine it and sell it to the U.S. thus supplying Russia with the funds to continue the war.
https://www.statista.com/statistics/1094286/us-imports-of-russian-oil-and-petroleum-products/

https://www.pbs.org/newshour/show/how-russian-oil-is-reaching-the-u-s-market-through-a-loophole-in-the-embargo

5) Climate/environment concerns

Although those currently obsessed with ‘global warming’ want us to believe it’s a proven fact, there is still much debate about it. Is it forever upward or is it cyclical? Do we just need to take a longer view of temps? Is it a natural occurrence or has man really affected it?
https://www.msn.com/en-us/news/opinion/this-nobel-prize-winner-does-not-agree-there-s-a-climate-crisis/ar-BB1lascF

China currently releases more carbon emissions than any other country. In 2019, China emitted 10.2 billion metric tons of CO2 — nearly twice as much as the United States (5.3 billion metric tons) — representing nearly 28% of global emissions. And China has shown little interest in choosing climate over economics.
https://www.dw.com/en/fact-check-is-china-the-main-climate-change-culprit/a-57777113

6) The push to Electric Vehicles (EVs)

  • Biden signed order aiming for half of new vehicles to be electric by 2030.
  • New electric vehicles now cost an average of more than $58,000, according to Kelley Blue Book, a price that’s beyond the reach of many U.S. households.
  • Technology is not quite there yet.
  • Infrastructure is needed:
    • Charging stations
    • Power grid is threatened.
  • Charge does not take vehicle far enough.
  • Battery is affected by harsh temperatures.
  • Battery life is too short, and batteries are far too expensive to replace.
  • China accounts for over 70% of global EV battery production capacity.
  • China’s dominance in EV battery manufacturing is similar to its dominance in mining and extraction of the minerals used in EV batteries.

https://www.pbs.org/newshour/nation/many-americans-arent-yet-sold-on-going-electric-for-their-next-car-poll-shows

https://crsreports.congress.gov/product/pdf/R/R47227

(This is crazy! How did this happen in such a short time? See How Did We Get Here?)

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