Biden’s policies could lead to ‘disaster’

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Former energy secretary Donald Trump on Sunday attacked the Biden administration’s energy policies, linking them to inflation and saying restrictions on the U.S. oil industry and rising household costs could lead in “disaster.”

Energy prices have jumped around the world over the past three months. Natural gas has risen nearly 600% this year, and the international benchmark Brent crude oil has risen more than 60% year to date. Currently, crude is hovering at $ 82 per barrel.

“The Biden administration’s drastic actions – not on pipelines, not on drilling, not on funding oil and gas projects overseas … are a stunning return to energy freedom achieved under the Trump administration , ”Rick Perry told CNBC’s Hadley Gamble.

The United States did not stop importing oil during the Trump administration, even as domestic production increased. On a monthly basis, U.S. production will rise higher than most consumption in 2019 and 2020, according to the U.S. Energy Information Administration.

But the latest EIA data shows that the pattern continues after Biden became president in 2021, with U.S. energy exports continuing to exceed imports.

As gas prices in the United States rise, the Biden White House has pressured OPEC and its oil -producing allies including Russia to speed up plans to raise output. But that group, called OPEC+, last week said it would stick to its plan to increase output by 400,000 barrels per day starting in December.

“The potential for disaster is very real, both in a national security stance, and whether or not we literally keep the lights on,” Perry said.

Perry oversaw pro-oil industry policies during his time at the Department of Energy. A former Texas governor, he has close ties to the Texas oil industry and has held leadership roles on the boards of two oil companies.

The problem of inflation

Aside from pressuring OPEC to produce more oil, U.S. Energy Secretary Jennifer Granholm pushed the Biden administration’s plans to build clean energy at home, arguing that the U.S. should focus on renewable energy as a long -term strategy to ensure that the U.S. does not “rely on political opponents.”

Perry pointed out a clear contradiction between the Biden administration’s stance on clean energy and its pressure on OPEC+ to produce more oil.

“On the one hand, you have John Kerry, who sails around the world, teaching people about the use of fossil fuels, and then you have Energy Secretary Mrs. Granholm who stands up and begs His Royal Highness Abdulaziz bin Salman to send more crude so we can lower the cost of fuel, ”Perry said.

“Our people are hurting,” Perry said, citing the vast increase in costs in the United States. He added that he thinks “$ 100 oil over the next six months is possible.”

U.S. annual inflation rose at its fastest pace in more than 30 years in September, despite declining personal income, the U.S. Commerce Department reported last month.

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The White House and U.S. Department of Energy were not immediately available for comment. Granholm admitted during the COP26 climate summit in Glasgow, Scotland, that the amount of clean energy available is not enough to replace fossil fuels. He said a priority for the administration is to make sure Americans can afford to heat their homes and fuel their vehicles this winter.

Granholm last week came back after OPEC and its allies decided to continue their current output plan, which adds 400,000 barrels per day per month until next year.

Asked by CNBC about the United States ’relationship with OPEC’s de-facto head of OPEC Saudi Arabia during the COP26 climate summit, Granholm said:“ In some places we have strong relations, and in some places we want to our allies act faster. “

Strategic Petroleum Reserve?

President Joe Biden blames the high costs on OPEC+countries, while some oil drillers blame restrictions on the fossil fuel industry. Granholm pointed out that the pandemic has slowed U.S. oil and gas investment and drilling.

To combat rising prices, Granholm told Bloomberg in an interview last week that tapping America’s Strategic Petroleum Reserve “is definitely on the table as an option.”

The Strategic Petroleum Reserve holds up to 714 million barrels of crude oil. It is located at sites along the Texas and Louisiana Gulf Coasts and is the largest backup oil supply in the world. It was designed as a buffer to protect the United States from a major supply disruption, such as a natural disaster or war.

Perry pointed out that the Strategic Petroleum Reserve was not designed for “long-term assistance,” adding that tapping into it would be “a silly task.”

“They’re there for a hurricane or some kind of national disaster that’s happening,” Perry said. “You go in, you use it, it is [for] a short time, ”Perry said, adding,“ I don’t know what tools [Biden]Located in the toolbox. I think he’s doing it while he’s going. “

Biden said Saturday that his administration has “other tools” to deal with high oil prices. “There are other tools in the arsenal that we need to deal with other countries at the appropriate time,” he said.

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