“The US is the largest crude oil producer in the world, pumping out nearly 13 million barrels on average every day in 2023, an all-time record, according to new data from the US Energy Information Administration.
That’s an awkward milestone for President Joe Biden, who has arguably done more than any modern president to facilitate America’s transition away from fossil fuels to greener alternatives.
For the last six years, America has outstripped Russia, Saudi Arabia, and other OPEC countries in crude oil production. And it has picked up the pace under Biden, who had approved more permits for oil and gas drilling on public lands by last October than former President Donald Trump had by the same point in his presidency.
Biden has expedited the construction of an oil pipeline in West Virginia and approved the Willow oil project in Alaska, over the opposition of environmental activists and despite his 2020 campaign promise to stop drilling on federal lands altogether.”
“In a win for wild lands and wildlife, President Joe Biden recently moved to protect more than 10 million acres of Alaska’s North Slope from oil development. The action permanently bans drilling across large swaths of this region.”
“Biden’s administration sold off more than 40 percent of the Strategic Petroleum Reserve last year to help limit rising fuel prices after Russia invaded Ukraine, leaving the stockpile at its lowest levels since the early 1980s. That’s fueling Republican accusations that Biden has left the U.S. vulnerable to a disruption of global oil supplies — at a time when Hamas’ terrorist attacks in Israel are stoking fears of a wider regional war disrupting fuel shipments from the Middle East.”
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the reserve still holds 351 million barrels — equivalent to nearly 56 days of total U.S. oil imports last year — though well below the peak of 727 million barrels it held during the Obama administration. That’s on top of 424 million barrels that private companies were storing in the U.S. as of early October.
The administration has defended its handling of the reserve, saying it still holds ample crude to protect the nation’s strategic needs and offer a cushion against price shocks. “I am not worried about the reserve levels at all,” Energy Secretary Jennifer Granholm told a House committee in September, adding: “It is the largest strategic reserve in the world.”
And the U.S. is no longer the energy beggar it was in 1973, when the Yom Kippur War prompted an Arab oil embargo against the United States that sent prices spiraling and left Americans waiting in hours-long lines at gas pumps. Back then, U.S. oil production was dropping while its thirst for the fuel was rising — prompting Congress to pass a law in 1975 to create the reserve.”
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” the United States is the world’s biggest oil producer, which exports more crude and petroleum products than it imports. Its output is at record highs and is climbing, even as demand has flattened.
Over the years, some conservatives have even called for abolishing the reserve, complaining — as the Heritage Foundation did eight years ago — that “Presidents have used the SPR as a political tool.”
Still, the reserves’ diminished volumes limit Biden’s options to respond to a future shock to the oil markets, including those that could result from a widening of the war in the Middle East.”
“The late-summer surge in gasoline prices is heightening the risks that inflation poses for President Joe Biden, and offering Republicans a new chance to pin the blame on his green agenda.
The GOP narrative has a major hole: U.S. oil production — already the highest in the world — is on track to set a new record this year, and will probably rise even more in 2024. But the ever-increasing flow of U.S. crude has failed to keep a lid on gasoline prices, showing once again that a global market drives the fuel prices that shape presidents’ political futures.”
“The 3,000 sailors and Marines arrived in the Middle East on August 6 alongside a deployment of US fighter jets to the region.
What exactly they’ll be doing isn’t yet clear: If US troops were to board commercial ships, the details would need to be worked out with the companies and countries in question. US officials told the Associated Press that such a policy is under consideration. (The Department of Defense did not respond to Vox’s questions for this story by press time.)
The Biden administration says that the Iranian threat to tanker traffic is the reason for the deployment of sailors and Marines. Iran seized two oil tankers in a week this past spring. Iran also intercepted a Tanzanian-flagged tanker on July 6, a day after the US Navy intervened to dissuade Iran from nearly seizing two ships. Iran has said that it sees itself as responsible for the security of the Gulf, not least because of its long coastline, and claimed it has not illegally seized tankers.
Other factors may be contributing to Biden’s decision-making: The US might be thinking about balancing China’s increased presence in the Middle East, as epitomized by the spring’s surprise rapprochement between Iran and Saudi Arabia. The US also might be responding to concerns from other partners in the region, especially as the US is pushing for Israel and Saudi Arabia to normalize relations. “The noise has increased a lot from Gulf partners, especially as the [Biden] administration is pressuring Gulf partners on a number of different issues, including normalization with Israel,” Simone Ledeen, who served as a senior defense official in the Trump administration, told me. “It’s certainly connected.”
Above all, Iranian actions in the Gulf could affect oil prices. For President Biden, keeping oil prices low has been a priority of utmost importance. It’s partly why he traveled to Saudi Arabia last summer to make up with Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud. And since then, the Biden administration has sought to reassure Gulf partners like Saudi Arabia and the United Arab Emirates of US commitment to the Middle East.
This “forward-deployed presence provides US officials with options,” writes analyst Bilal Saab, that would make Iran “think twice before using violence to achieve its political aims.””
“The move to regulate fuel economy came about a few years earlier, following the 1973–74 Arab embargo that suddenly ended the flow of oil from OPEC nations. In the face of skyrocketing oil prices, Congress froze gasoline prices to protect American consumers from pocketbook shock. Then came the hard part. Elected officials sought to require U.S. automakers to build the smaller, more economical cars that unquestionably would have been built had gasoline prices been allowed to rise freely. Yet the fuel economy standards hit passenger sedans hard while leaving light trucks, which were not seen as passenger vehicles, almost untouched.
As the fuel economy standards began to bite consumers, they found that trucks provided comfort and safety no longer available in the downsized sedans. Truck sales surged, and in 1990, Ford placed a four-door body on a Ranger truck frame and introduced the Ford Explorer, a passenger vehicle that satisfied the government’s truck definition. This inspired an explosion of similar SUV production across the industry. Trucks became beautiful, expensive, and highly desirable.”
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“All the while, the fuel economy standard for trucks remained less strict than for sedans. To make things even better for U.S. producers, almost-prohibitive tariffs on European light trucks were extended to the rest of the world. Many foreign producers eventually jumped the tariff wall and built trucks and cars here, but the home-grown industry enjoyed an early advantage.”
“OPEC+, meaning the Organization of Petroleum Exporting Countries (OPEC), and its allies, the plus sign, announced it would cut production by over 1 million barrels of crude oil a day. For some context, there are about 100 million barrels of oil produced worldwide each
“Clean energy is rapidly rising on the Texas power grid, but regulators in the Lone Star State are now considering a plan that could give fossil fuels a boost.
The zero greenhouse gas emissions trio — wind, solar, and nuclear energy — provided more than 40 percent of electricity in the state in 2022. It was a year when several Texas cities experienced their hottest summers on record, driving electricity demand to its highest levels ever as fans and air conditioners switched on. Winter proved stressful too, with freezing temperatures last month pushing winter electricity peaks to record-high levels, narrowly avoiding outages.”
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“Texas leads the US in oil and natural gas production, but it’s also number one in wind power. Solar production in the state has almost tripled in the past three years. Part of the reason is that Texas is particularly suited to renewable energy on its grid. Wind turbines and solar panels in Texas have a high degree of “complementarity,” so shortfalls in one source are often matched by increases in another, smoothing out power production and reducing the need for other generators to step in. That has eased the integration of intermittent energy sources on the grid.
Coal, meanwhile, has lost more than half of its share in Texas since 2006. For a long time and across much of the country, the story was that cheap natural gas from hydraulic fracturing was eating coal’s lunch on the power grid. Coal was also facing tougher environmental regulations like stricter limits on mercury, requiring coal power plants to upgrade their equipment, and raising electricity production costs.”
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“in Texas, natural gas’s share of the electricity mix has been holding around 40 percent for more than a decade. On the other hand, renewable energy has surged as coal withered. Wind alone started beating out coal in 2019 and is now the second-largest source of electricity behind natural gas in the state.
An important factor is that the state has its own internal power grid, serving 26 million customers and meeting 90 percent of its electricity demand. It’s managed by the nonprofit Electric Reliability Council of Texas, or ERCOT. In the freewheeling Texas energy market, the cheapest sources of electricity become dominant, and wind and solar — with low construction costs, rapid build times, and zero fuel expenses — have emerged as winners.”
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“Some lawmakers are now working to tilt the balance toward fossil fuels. “There are different political figures who are trying to incentivize gas power plants or deny, prohibit, or inhibit renewables,” Webber said.
Last year, the Texas legislature passed a law that would prevent the state’s retirement and investment funds from doing business with companies that “boycott” fossil fuels.
Texas Lt. Gov. Dan Patrick said one of his legislative priorities for this year is to secure more support for natural gas-fired generation. “We have to level the playing field so that we attract investment in natural gas plants,” Patrick said during a press conference last November. “We can’t leave here next spring unless we have a plan for more natural gas power.””
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“While wind and solar power are ascendant, they are intermittent, and regulators want to make sure there is enough dispatchable power like natural gas to ramp up on still, cloudy days. The new proposal would create a credit scheme that would encourage more of these dispatchable plants to come online and extend a lifeline to some existing generators that are struggling to compete. But it would also raise the costs of electricity production.
Environmental groups like the Sierra Club noted that the proposal leaves the door open for other tactics for balancing electricity supply and demand, like energy storage, increasing energy efficiency, and demand response.”