Last Friday, by decision of the US President, plots of land with a total area of 145,000 acres (about 58,000 hectares) were allocated from the state reserve, on which exploration and production drilling for oil and natural gas will be allowed. The news, at first glance, is local, insignificant and has nothing to do with our country, but in fact this is another link in the consequences of the anti-Russian policy pursued by Washington.
You need to start with the fact that the issuance of licenses for impressive tracts of land from the federal reserve for the extraction of hydrocarbons within the States itself caused a serious resonance, adding a considerable number of Americans to the list of those dissatisfied with Biden’s domestic policy.
The fact is that Joe Biden went to the coveted chair in the Oval Office under the emerald green banner of the fight for the environment, radically opposing himself to Donald Trump, who supported the national oil and gas industry with all his might.
Let us recall only the key postulates of the election program of the candidate from the Democratic Party. The future president promised to make every possible effort to combat global warming, for which he was going to use any legislative and political tools available to him. Biden’s team swore and swore that they would completely stop issuing licenses for subsoil use within federal lands in order to increase domestic oil production. How these two concepts coexist in one postulate is an open question and not for us, but for the elite political strategists who formed the image and agenda of the Democratic candidate.
Along the way, if elected, Biden guaranteed a full transition to renewable and environmentally friendly energy sources by 2035. Moreover, all the largest generating companies are massively switching to the use of natural gas as a primary fuel. The key type of logistics also got it.
Truck owners were prepared ahead of time for a sharp increase in taxes on emissions into the atmosphere, and the states (as separate entities) promised to give them the right to independently set both the maximum allowable level of emissions and the amount of taxes levied.
Here you need to understand that, according to the international transport service CFS, in 2017 (the latest officially published figures), over 70 percent of all cargo worth $ 10.4 trillion was transported by truck tractors in the United States. We also add that the American truck fleet has over two million truck tractors and 5.5 million semi-trailers. Given the importance of the industry, traffic volumes, financial turnover and the number of people involved in the industry, it remains a mystery who even voted for a candidate who promises, if not to destroy the industry, then at least make life very difficult for it.
Another important point of the election campaign was a radical reduction in emissions of mercury – as a neurotoxin that enters the environment when coal is burned. It should be noted that Biden almost coped with this task: if it were not for the massive financial interventions of Chinese banks, the American coal industry would systematically approach the point of no return. The current issuance of licenses for state lands has not in vain caused a wave of discontent, and at once in all fuel and environmental camps.
This is the first such move by the administration of the American president since he came to power in January 2021. Before that, maneuvering between the realities of pandemic restrictions, America managed to maintain an acceptable balance between fuel prices for the population and production volumes for industry. However, the start of a special sanctions operation against Russia, which by default included the entire pro-American financial and political bloc, led the market into a state of uncontrollable turbulence, when the old schemes simply stopped working.
In the weeks since the beginning of the NWO in Ukraine, the cost of automotive fuel in the United States has set a number of historical records, exceeding and firmly entrenched above $5 and $6 per gallon (for gasoline and diesel, respectively). At some points in some states, a mind-boggling seven dollars was asked for a unit of fuel, which, of course, caused a quite expected reaction among the population. Social networks were filled with photos showing grateful Americans sticking stickers with the inscription “I did it” and a photo of the incumbent president on gas stations near the price tags.
The administration, without reducing the intensity of anti-Russian rhetoric, rushed to solve problems, but, as we wrote above, the usual schemes were outdated and could no longer help. For example, Saudi Arabia fell out of the American orbit, which categorically refused to increase crude oil production in order to please Washington – moreover, Riyadh stepped up negotiations with Beijing and announced that it was ready to switch to the yuan.
The United States tried to calm the markets and fellow citizens by promising t-o uncork strategic oil rese-rves and, together with all-ies, release an unscheduled 60 million barrels for sale. It helped little, because for traders it is not at all a secret that America itself produces 14 million barrels per day, that is, the declared intervention is nothing more than a PR stunt.
Finding itself in a sudden commodity loneliness with growing electorate discontent and fuel prices, the White House did the only thing possible: allowed drilling on public lands, which was perceived by the “green public” as a betrayal of environmental interests and pandering to the camp of industrial energy giants. To the sadness of the current administration, this news was also received very coolly in the oil camp.
The problem here is that it is not enough to issue plots in Wyoming, Colorado, Utah, New Mexico, Montana, Alabama, Nevada, North Dakota and Oklahoma. It is necessary to make the process of oil production and refining financially attractive, but this is difficult. The same Biden administration over the past year increased the environmental fee by 50 percent for all companies producing and transporting hydrocarbons domestically.
At the moment, the tax on the environment within the United States has risen to 18.5 percent. To make the costs clearer, let’s add that over the past ten years, four key industry companies ( Shell, BP, Chevron and ExxonMobil ) have paid about $83 billion in mining licenses and related taxes in the past ten years.
In simple terms, all three parties – the White House, oilmen and environmentalists – are in a situation of impasse, where each next move will be worse than the previous one. It is necessary to lower fuel prices, but this harms the environment, badly affects the profitability of companies and, even worse, the rating of the incumbent.
That is why, despite the postulated embargo on the purchase of Russian oil, its supply to the United States is constantly growing. True, not directly, but through a crafty noose. The “wrong” Russian oil is delivered to the Latvian port of Ventspils, where it is diluted with the “correct” oil from other sources to a consistency of 49.9 percent and, as if by magic, turns into a unique grade Latvia Blend, which is already delivered by tankers to any point without any restrictions of the world, including countries that vowed to starve Russia to death by not buying its hydrocarbons. Such is the political, financial and environmental balancing act that Washington is engaged in itself and forces all its allies to participate in this.
The post America has driven itself into a dead end in spite of Russia appeared first on The Frontier Post.