As he travels to Saudi Arabia, President Biden is under pressure to address the high cost of oil and gas, and a recent study looks at the greenhouse gas emissions of the biggest American oil and gas corporations.
Biden Might Pressure Saudi Arabia On Oil, But Markets Will Probably Prevail.
President Biden’s visit to Saudi Arabia might encourage the nation to increase oil output, but it is unlikely to result in a significant shift in the kingdom’s objectives.
During the contentious trip, which has drawn criticism from progressives who believe the administration should avoid Saudi leadership due to its record on human rights, the war in Yemen, and the murder of former Washington Post journalist Jamal Khashoggi, the president will be thinking about oil prices.
With gas prices recently averaging $5 per gallon nationwide and inflation creating significant headwinds for Democrats in a challenging midterm election year, Biden is up against these costs.
The Saudis’ attempt to boost global supply in a way that would somewhat offset the market disruption brought on by Russia’s invasion of Ukraine would be welcomed by the administration.
But Experts Advise American Drivers Not To Hold Their Breath.
According to Joseph Majkut, director of the energy security and climate change program at the Center for Strategic and International Studies, “it increases the incentive to increase production, but I do think the Saudis are looking at the overall market dynamics and trying to respond in a relatively careful way.”
Even while the Biden visit will be “an important signal that the two countries are working together on energy concerns,” he noted that any effect from the trip is likely to be small.
WHAT THEY ARE GOING TO CONFESS
The White House has stated that talks with producers like the Saudis will continue.
“We communicate frequently with manufacturers worldwide as well as those in the Gulf. Naturally, we are also focusing on home manufacturing. According to National Security Advisor Jake Sullivan, those discussions will continue while on this trip.
They mentioned that the president had spoken about the security of the energy supply in Europe and Asia. He’ll discuss energy security here, he continued.
Several anticipations The Hill quoted Antoine Halff, a former chief oil analyst at the International Energy Agency, as saying that regardless of the visit, he anticipates Saudi Arabia to increase its output.
Halff, who is currently an adjunct senior research fellow at Columbia University’s Center for Global Energy Policy, stated that a production increase was imminent. It might not be significant, but there will be an increase in production nonetheless.
Meanwhile, Samantha Gross, head of the Brookings Institution’s Energy Security and Climate Initiative, was dubious about the trip’s potential for any kind of influence.
In an interview with The Hill, she stated, “I think the impact of this trip on the oil market is going to be nil to very minimal. Producers like Saudi Arabia and the United Arab Emirates most certainly have little additional production capacity right now, but “they also for sure don’t have a lot of motive to use it,” according to the report.
She continued, “I don’t think the prices are so high that they’re eliminating demand. They’re enjoying the high costs.”
At the end of the day, any efforts to encourage Saudi Arabia to increase its gas production will likely fail since the United States has few incentives to do so.
I don’t think the United States has anything to give, she remarked.
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